India and Mongolia – a partnership to rise

Indian Prime Minister Narendra Modi has given high priority to foreign policy over the past 12 months. Even those crititcally tuned to Minister Modi as a politician acknowledge he has made a relatively smooth transition from the position of Chief Minister to Prime Minister. Some say that his performance in the domain of foreign policy has exceeded his achievements in the domestic sphere. Apart from his focus on building economic ties and the usage of soft power, Modi makes a special emphasis on certain countries which are strategically important but have not been accorded the sort of priority they deserve, especially in terms of high political visits.

Indian Prime Minister Narendra Modi has given high priority to foreign policy over the past 12 months. Even those crititcally tuned to Minister Modi as a politician acknowledge he has made a relatively smooth transition from the position of Chief Minister to Prime Minister. Some say that his performance in the domain of foreign policy has exceeded his achievements in the domestic sphere. Apart from his focus on building economic ties and the usage of soft power, Modi makes a special emphasis on certain countries which are strategically important but have not been accorded the sort of priority they deserve, especially in terms of high political visits.

Vivid examples of this are Modi’s visits to countries like Fiji - home to a large Indian population. During his recent visit to China, Modi visited South Korea and Mongolia. In fact he is the first Indian Prime Minister to visit Mongolia. He even made a speech addressing the Mongolian Parliament. India’s strategic and economic relationship with Mongolia has been growing over the years. India happened to be the first country outside the Soviet Bloc to establish diplomatic relations with Mongolia in 1955, supporting its membership in the United Nations as well as in the Non-Aligned Movement. Before Modi’s visit there have been a number of ministerial meetings between national representatives (e.g. in 2011 when former Indian President Pratibha Patil came to Mongolia).

Economically the relationship has been growing but not without a dip. Bilateral trade between both countries reached $50 bln falling to $24 bln. This is far below potential bilateral trade between China and Mongolia estimated at $8 bln. Though recently skepticism in India vis-à-vis Chinese economic influence in Mongolia has been going up, Mongolia is nevertheless seeking to foster strong ties with countries like Russia and Japan.

Though recently skepticism in India vis-à-vis Chinese economic influence in Mongolia has been going up, Mongolia is nevertheless seeking to foster strong ties with countries like Russia and Japan.

Flickr / Ludovic Hirlimann
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Strategically, the fact that the Indian PM’s visit to Mongolia followed the Chinese one is a clear indicator that while endeavoring to strengthen bilateral relations with China India will not shy away from engaging aggressively with China’s neighbors, just as China does with India’s neighbors, most notably Pakistan. The Indian PM categorically mentioned that India seeks to bring strategic cooperation with Mongolia to the next level. Some of the steps taken in this context were India’s offer to set up a National Cyber Security Centre, widen cooperation between the National Security Councils, and work closer in the area of defense cooperation and in the Civil Nuclear Sector. Agreements were also signed in surveillance and policing areas. The Indian PM also mentioned the importance of Mongolia for India in the context of its Act East Policy. In a joint press conference with his Mongolian counterpart Chimed Saikhanbileg Modi stated, “Today, Mongolia is also an integral part of India’s Act East Policy,” adding that “The destinies of India and Mongolia are closely linked with the future of the Asia Pacific. We can work together to help advance peace, stability and prosperity in this region.”

India also announced that $1 bln of financial assistance to Mongolia will be transferred for infrastructural development. Even though India cannot match China in cheque book diplomacy, this is a solid contribution. Over the past decade, India has sent a clear message that New Dehli is willing to provide financial assistance without stringent conditions imposed by China, and with the intention of carrying out long term projects in development of infrastructure. India also decided to set up more ITEC Indian Technical and Economic Cooperation Centers in Mongolia, increasing the number from 150 to 200. India shall also provide assistance in dairy farming.

Modi was also keen on demonstrating soft power tools on the visit. At a banquet hosted in his honor the Indian PM flagged the historical linkages between both countries. “Ours is a relationship that is not measured on the scale of commerce or driven by competition against others. It is a relationship of immeasurable positive energy that comes from our spiritual links and shared ideals.” Countries are linked by the historical figure of Genghis Khan and Buddhism. Modi’s gifts to his hosts clearly reiterated this point. The Indian PM presented Mongolian President Tsakhiagiin Elbegdorj with a specially commissioned reproduction of a rare 13th century manuscript on the Mongolian history from the Rampur Raza Library in Rampur, India. While Buddhist links between both countries are centuries old, in 1990 India sent a monk-ambassador Kushak Bakula from Ladakh to Mongolia. He helped to spread Buddhism by setting up a school. The Indian PM visited the Gandan Tegchilen Monastery in Ulan Bator and presented a sapling of the revered Bodhi tree to the chief abbot of the Monastery. Modi attaches great importance to Buddhism as a possible binder between countries in South Asia and South East Asia. The Indian PM also attended the Mini Nadaam festival.

In conclusion, Modi’s visit to Mongolia may not have brought anything big for the imminent future but the right message has been sent. The fact that Mongolia has close ties with Russia - an old Indian ally - is also significant. Both countries can explore areas where they can work jointly for helping Mongolia economically. Mongolia is not only important for India’s Act East Policy but also as partner in the Central Asia who will be working closely with New Dehli alongside Russia and Japan. This will be a solid political and economic leverage for restraining Chinese influence in the region.