Reassessing Mongolia-India Economic Relationship: Present, Past and Future

Abstract

India and Mongolia and two geographically distant countries yet they have been bonded together since ancient times owing to its close cultural affinity. This closeness mainly through Buddhism has also helped both the countries in maintaining a cordial relationship over the time. In modern times, the bilateral relationship between Mongolia and India developed in 1955 as the Indian government took the initiative to know better its East-Asian neighborhood. The historic and cultural connections between the two countries are well-known. Hunas invaded through India’s northern border. Buddhism travelled far from home to reach Mongolia. They share a lineage that allows both India and Mongolia to stand on a common ground of mutual respect and cooperation. The diplomatic relation between these two nations holds much importance as both countries are serious about improving its economic condition. In the recent years, there has been increased visibility of movements of leaders, diplomats and high officials visiting each other in an effort to improve the bilateral relation. One of the significant event is the visit of Indian Prime minister Sri Narendra Modi’s visit to Mongolia in May, 2015 wherein he announced a credit line of $1 billion to Mongolia for its economic development, as both the countries agreed to enhance their relationship from ‘Comprehensive Partnership’ to ‘Strategic Partnership’. This signifies an important step towards syncing the present partnership and taking it to a newer height.