INDIA-MONGOLIA
India-Mongolia Bilateral Cooperation
India and Mongolia enjoy a warm and friendly relationship dating back to ancient times—a partnership they describe as a "Spiritual Neighborhood." This relationship is rooted in shared historical ties, Buddhist linkages, and converging strategic interests in the region
India and Mongolia share a diplomatic relationship that has seen cooperation across various sectors. Bilateral ties between the two countries have strengthened over the years, and several areas of collaboration exist.
The India-Mongolian Cultural Agreement signed in 1961 has governed the Cultural Exchange Programme (CEP) between the two countries. The Agreement envisages cooperation in the fields of education by way of scholarships, exchange of experts, participation in conferences etc. The CEP was subsequently renewed in 2003, 2005 and 2009 for 3-year periods
The Indian community in Mongolia is modest, numbering about two hundred according to Mongolian Immigration figures. Most Indians are either employed in organized sector or are self-employed such as operating Indian restaurants which are popular with the Mongolians and foreigners in Mongolia
Here are key aspects of India-Mongolia bilateral cooperation:
- India and Mongolia established diplomatic relations in 1955. The two countries have maintained a friendly relationship, and diplomatic ties have evolved positively over the years
- Economic cooperation between India and Mongolia includes trade, investment, and development assistance. Efforts are made to enhance economic ties, with a focus on sectors such as mining, agriculture, and infrastructure
- India and Mongolia aim to boost bilateral trade. Both countries explore opportunities to increase the exchange of goods and services, with a focus on areas of mutual interest
- India has extended development assistance to Mongolia, contributing to projects related to infrastructure development, capacity building, and human resource development
- Cultural exchanges and educational cooperation form an essential part of the bilateral relationship. India has provided scholarships to Mongolian students, and initiatives are taken to promote cultural understanding between the two nations
- India and Mongolia engage in defense and security cooperation, including training programs, joint military exercises, and exchanges between defense personnel. These collaborations contribute to enhancing the security capabilities of both countries
- Healthcare cooperation has become increasingly important, especially in the context of the COVID-19 pandemic. India has provided medical assistance, including vaccines, to support Mongolia's efforts in managing the health crisis
- Efforts are made to promote tourism between the two countries. Cultural and historical ties are leveraged to encourage people-to-people exchanges and tourism
- Both India and Mongolia collaborate on various multilateral platforms, including the United Nations and the Shanghai Cooperation Organization (SCO), where both are members
- India and Mongolia have explored space cooperation, with discussions on the peaceful use of outer space for mutual benefit
- India is often referred to as one of Mongolia's "Third Neighbors" under Mongolia's foreign policy framework. Mongolia aims to diversify its international relations beyond its immediate neighbours
Mongolia launched construction of first strategically oil refinery, constructed by India
- Mongol Refinery, a state-owned company overseeing the construction of a new refinery in the southern Dornogovi province, has announced plans for a facility capable of processing 1.5 million tonnes of crude oil annually, equivalent to approximately 30,000 barrels per day (bpd).
- While smaller in scale compared to international refineries, such as China's facilities processing hundreds of thousands of barrels per day or India's Reliance Industries operating at 1.2 million bpd, Mongolia's refinery is strategically crucial.
- Expected to be completed by late 2022, the refinery aims to fulfill the nation's demand for gasoline, diesel, aviation fuel, and liquefied petroleum gas (LPG). By achieving energy self-sufficiency and stabilizing fuel and commodity prices, Mongolia seeks to bolster its economy, anticipating a 10 percent increase in the gross domestic product.
- Notably, the refinery will process Mongolia's domestic crude oil, currently exported to China. With an estimated cost of $1.35 billion, the project includes a pipeline and a dedicated power plant.
- In the past year, Mongolia imported nearly 1.5 million tonnes of oil products, primarily from Russia, constituting 18 percent of the country's total imports. Given its slow-growing oil demand, Mongolia, positioned between China and Russia with a population of 3 million, will significantly benefit from the refinery.
- Almost half of Mongolia's population engages in nomadic stock herding. Despite its modest oil production of 7.6 million barrels last year (approximately 21,000 bpd), contributing 6 percent to export earnings, Mongolia foresees an increase in crude oil output leading up to the refinery's operational commencement.
- In contrast, China, Mongolia's prominent southern neighbor, produces about 3.8 million bpd of crude and imports over 9 million bpd, according to official government data.
