Mongolia Seeks Enhanced Economic Partnership with India

Strategic Insights -

The India-Mongolia Business Forum, jointly organized by the Confederation of Indian Industry, the Mongolian National Chamber of Commerce and Industry, and the Embassy of Mongolia in India, underscored the growing strategic and economic partnership between the two nations. Mongolias Deputy Prime Minister S. Amarsaikhan invited Indian oil firms to explore Mongolias oil fields, highlighting the country's strategic location near China and Russia, as well as its Free Trade Agreements with Japan and others, which offer India enhanced market access via Mongolia. Amarsaikhan also emphasized Mongolias vast potential in various sectors, including railroad development, animal husbandry processing, manufacturing, tourism, and healthcare.

Key Takeaways:

  • Mongolias Deputy Prime Minister S. Amarsaikhan invited Indian oil firms to explore Mongolias oil fields, with supporting infrastructure to be commissioned within two years.
  • Mongolias location near China and Russia, as well as its Free Trade Agreements with Japan and others, offer India enhanced market access via Mongolia.
  • The country has vast potential in various sectors, including railroad development, animal husbandry processing, manufacturing, tourism, and healthcare.
  • The landmark oil refinery project, financed by India with a $1.7 billion investment, will meet over 50% of Mongolias petroleum needs once operational.
  • Mongolias multilateral, open, and transparent foreign policy places India among its most highly valued partners, positioning Mongolia as a vital land bridge for Indias Indo-Pacific strategy.
  • India has rich reserves of coking coal, gold, copper, and other critical minerals, with a treaty with Russia offering 50-60% tariff rebates on goods transported to Russia.
  • The automobile and pharmaceutical sectors are ripe for collaboration between the two countries.
  • The Mongolian National Chamber of Commerce and Industry emphasized IT, tourism, and advanced technologies as key pillars of cooperation, with the Chamber playing a pivotal role in fostering industrial partnerships.
  • A six-point agenda was proposed to deepen bilateral ties, including mining and critical minerals, energy and renewables, e-mobility and battery value chains, pharmaceuticals and traditional medicine, startups and innovation, and education, culture, and heritage.

Statistics:

  • The landmark oil refinery project is financed by India with a $1.7 billion investment.
  • The project will meet over 50% of Mongolias petroleum needs once operational.
  • Mongolia has treaty with Russia offering 50-60% tariff rebates on goods transported to Russia.

Sources:

  • Confederation of Indian Industry (CII)
  • Mongolian National Chamber of Commerce and Industry (MNCII)
  • Embassy of Mongolia in India
  • Global Data Point (2022)