INDIA – CENTRAL ASIA
Current Relations
- Economic
- Trade: Current trade volume is $2 billion, with $1.5 billion with Kazakhstan alone.
- Nuclear Fuel: Kazakhstan exports 80% of India’s uranium needs.
- Dialogue: Indian-Central Asia Business Council promotes business.
- Connectivity: Projects like INSTC (International North-South Transport Corridor) and Ashgabat Agreement aim to boost trade.
- Cultural
- ITEC: Offers training to young professionals from Central Asia.
- Bollywood: Large viewer base for Indian films.
- Yoga & Traditional Practices: Established in centers like Ashgabat.
- India-Central Asia Dialogue: Promotes ties and connectivity.
- Strategic
- Military Exercises: Joint exercises with Kyrgyzstan (Khanjar) and Uzbekistan (Dustlik).
- Eurasian Heartland: Region as a soft power contest between India and China.
- Chinese Presence: OBOR routes pass through Central Asia.
- Farhkor Air Base in Tajikistan: India’s first overseas military base.
- Multilateral Engagements
- SCO (Shanghai Cooperation Organisation), INSTC, TAPI Gas Pipeline, and Ashgabat Agreement.
Importance/Benefits
- Economic
- Mineral Security: Central Asia has reserves of key metals and rare earth elements.
- Trade Routes: Historic trade routes connect India and Central Asia.
- Nuclear Wealth: Essential for India’s nuclear power needs.
- Agriculture: Potential for agro-industrial collaboration.
- Global Markets: Eurasian economic corridors merge in this region.
- Oil Companies: Prospects for constructing pipelines.
- Strategic
- China: Proximity to China gives this region strategic importance for India.
- Pakistan: Counterbalances Pakistan’s influence in the region.
- Location: Bordered by both Pakistan and China, thus significant for India.
- New Frontier: Rich in minerals vital for India’s future.
Concerns
- Economic
- Lack of Direct Trade Route: No direct trade connectivity with the region.
- Absence of a Consolidated Trade Deal.
- Chinese Dominance: China controls much of Central Asia’s trade.
- Strategic
- Extremism: Terror groups present a threat in the region.
- Drug Trade: Central Asia’s location within the golden crescent raises concerns.
- Delays: INSTC and Ashgabat Agreement projects face implementation issues.
- Chinese Dominance: China’s cultural and economic influence is significant.
Quotes
- “We both seek a peaceful and secure neighbourhood at a time of challenges in our region. And, we have shared interest in combating extremism and terrorism that has become a threat without borders,” — PM Modi.
Growing cooperation between India and Central Asia is rooted in a common “Geocultural Milieu”. Along with this, India’s “cooperative geopolitics”, maritime connectivity will augment the relations to a new level.