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India Likely to Extend $100M Credit to Kyrgyzstan for Defense

The current chair of the Shanghai Cooperation Organization, President Sooronbay Jeenbekov of Kyrgyzstan, was a distinguished guest at the inauguration ceremony of the Prime Minister of India. A potential development involves India extending a $100 million credit line to Kyrgyzstan. This generous act would facilitate the transfer of defence equipment in response to the Central Asian Republic’s request for such equipment from India.

The strategic relationship between the two nations is more than just routine bilateral exercises and the joint building of a mountain warfare training centre in the city of Balykchy, Kyrgyzstan. It’s a testament to their enduring diplomatic ties, trust, and mutual respect.

India-Kyrgyzstan Bilateral Relations

Since Kyrgyzstan became an independent nation in 1991, it has cultivated strong bilateral relations with India. In fact, India was among the first countries to establish diplomatic ties with independent Kyrgyzstan the following year. Numerous framework agreements have been signed since then, spanning sectors like Culture, Trade and Economic Cooperation, Civil Aviation, Investment Promotion and Protection, Avoidance of Double Taxation, Consular Convention, and others.

In 2011, the countries initiated the joint ‘Khanjar’ series of exercises. As proof of their prospering economic ties, the commercial trade between India and Kyrgyzstan reached $24.98 million in the fiscal year 2016-17. The Indian diaspora in Kyrgyzstan is also thriving, with approximately 9,000 Indian students studying medicine in several medical institutions across the country. Not to mention, numerous Indian businessmen engaged in trade and various services in Kyrgyzstan.

Brief Facts Overview

Year Indian exports to Kyrgyzstan ($) Kyrgyzstan’s exports to India ($)
2016-17 22.66 million 2.32 million

Kyrgyzstan’s Geopolitical Context and Central Asia

Kyrgyzstan, a nation in Central Asia, is geographically sandwiched between Kazakhstan on the north, China on the east and south, Tajikistan and Uzbekistan on the south and west. Its capital city is Bishkek. Kyrgyzstan shares the Fergana valley with Uzbekistan and Tajikistan, unfortunately, this valley houses several terrorist groups which may potentially threaten the stability of the region.

The Central Asia region (CAR) is known for its abundant mineral resources, particularly hydrocarbons. Given its proximate location, India as an extended neighbour of CAR has significant geostrategic and economic interests in this region. Future prospects for energy security cooperation between Central Asia and India seem promising. Therefore, preserving peace and stability in CAR and Afghanistan is of utmost importance for India’s security.

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