India and Mongolia have recently reviewed their bilateral cooperation in the hydrocarbons and steel sectors. During this review, India reiterated its dedication to completing the Mongol Refinery Project promptly, which holds a paramount position as Mongolia’s first oil refinery.
The Mongol Refinery Project
The greenfield Mongol Refinery Project is being constructed under a Line of Credit from the Government of India. This significant project aims to reduce some of Mongolia’s dependency on imported fuel. This endeavor emerged against the backdrop of Mongolia, known for its extensive uranium deposits, signing a civil nuclear cooperation agreement with India in 2009. In contrast, China unfolded its Belt and Road Initiative (BRI), an investment plan that India opposes due to concerns over sovereignty, environmental impact, and potential debt traps for participating countries.
Hydrocarbons and Steel: The New Collaboration Frontiers
Indian authorities have warmly welcomed the interest of Mongolian companies in supplying coking coal to India’s booming steel industry. With predictions suggesting that India will surpass China as the largest importer of coking coal by 2025, partnerships with Mongolian firms in these domains are anticipated to be mutually beneficial. Not limiting the cooperation to mere trade, India has also offered to share its expertise in the oil and gas sector, aligning with the developmental priorities of Mongolia.
India-Mongolia Historical Relations
The historical relations between India and Mongolia can be traced back to their shared Buddhist heritage. India was the first nation outside the ex-Soviet bloc to establish diplomatic relations with Mongolia in 1955. Furthermore, the ties were upgraded to a strategic partnership, making a pivotal shift in their relationship history.
Diplomatic Relations and International Cooperation
Over the years, both nations have supported each other in various international forums. Mongolia has publicly backed India’s bid for a permanent seat at the expanded United Nations Security Council (UNSC). On the other hand, India has played a critical role in securing Mongolia’s membership in crucial international forums, including the United Nations, against significant opposition.
Economic and Defence Cooperation
The bilateral trade between the two nations stood at USD 38.3 million in 2019. They also actively participate in joint defence exercises such as Nomadic Elephant and the Khaan Quest. These engagements further solidify their commitment to mutual safety and security.
Environmental and Cultural Relations
Both countries have taken concerted steps to address environmental issues, evidenced by their participation in the Bishkek Declaration focused on snow leopards. Cultural relations have deep roots with the Ministry of Culture (India) undertaking projects like reprinting volumes of Mongolian Kanjur under the National Mission for Manuscripts (NMM).
Potential Areas for Future Cooperation
There are several potential areas for cooperation in the future, including solar energy and Mongolia’s thriving mining sector. The aim is to bring about sustainable and equitable growth while preserving and promoting the shared cultural heritage of Indo-Mongolian relations. This serves as the basis for nurturing and pursuing common interests in the future.