By: Sonalika Singh, Research Analyst, GSDN

In the context of an increasingly interconnected world, the significance of bilateral relations between countries cannot be overstated. One such example of potential for growth and cooperation lies in the burgeoning relationship between India and Azerbaijan. These two nations, despite being geographically distant, share a multitude of interests, values, and strategic objectives that can contribute to building a strong, mutually beneficial partnership.

India, the world’s largest democracy and one of the fastest-growing economies, stands at a crossroads in terms of its foreign policy and global partnerships. As it looks to expand its presence and influence in global affairs, strengthening ties with nations like Azerbaijan offers a strategic opportunity. Azerbaijan, located at the crossroads of Europe and Asia, is a key player in the South Caucasus region, strategically positioned at the intersection of major energy routes and geopolitical interests.

Both nations, though different in size, history, and geography, find in each other a valuable partner capable of driving long-term collaboration across various domains. From energy cooperation to trade and strategic alliances, the India-Azerbaijan relationship has vast potential for mutual benefit.

India and Azerbaijan enjoy warm relations, rooted in civilizational linkages, cultural affinities, and shared values of understanding and respect for one another’s cultures. The Ateshgah fire temple near Baku is a prime example of the long-standing historical relations and cultural exchanges between India and Azerbaijan. This 18th-century monument, with an even older history, features wall inscriptions in Devanagari and Gurmukhi. It serves as a lasting testament to the trade links and hospitality enjoyed by Indian merchants traveling along the Silk Route to Europe, particularly in Azerbaijani cities such as Baku and Ganja.

The cultural exchanges over ages between Azerbaijan and India have led to close cultural affinity and shared traditions. World renowned Azerbaijani poet Nizami Ganjavi had a profound influence on eminent Indian poets like Amir Khusrau. In recent past, the famous Azerbaijani artist, Rashid Behbudov, a noted tenor who switched to singing popular Azerbaijani songs in European classical tradition, was a close friend of late Raj Kapoor. Indian intellectuals like Gurudev Rabindranath Tagore are well known in Azerbaijan.

During the period when Azerbaijan was part of the former Soviet Union, India’s Nobel Laureate Rabindranath Tagore, former President Dr. S. Radhakrishnan (as Vice President in 1956), and former Prime Minister Jawaharlal Nehru (in 1961) visited the Azerbaijan Soviet Socialist Republic.

India recognized Azerbaijan as an independent country in December 1991 and established diplomatic relations in February 1992. The Indian Mission in Baku was opened in March 1999, while Azerbaijan opened its resident mission in New Delhi in October 2004.

Former Vice President of India, Shri M. Venkaiah Naidu, visited Baku for the NAM Summit from 24-26 October 2019, accompanied by External Affairs Minister, Dr. S. Jaishankar. More recently, Dr. Jaishankar met Azerbaijani Foreign Minister Jeyhun Bayramov on the sidelines of the 19th NAM Summit in Kampala in January 2024. Former External Affairs Minister, Smt. Sushma Swaraj, visited Azerbaijan in April 2018 to attend the NAM Ministerial Conference and for a bilateral visit. Indian Prime Minister Narendra Modi participated in the online NAM Summit on the theme “United against COVID-19,” held at the initiative of Azerbaijani President on 04 May 2020. Anupriya Patel, Minister of State for Commerce and Industry, visited Baku for the 6th meeting of the Inter-Governmental Commission on 25 October 2023.

Several ministerial-level visits from Azerbaijan to India have taken place since 1991. Deputy Foreign Minister Mr. Elnur Mammadov visited India in November 2022 for Foreign Office Consultations and again in March 2023 to participate in the Raisina Dialogue. Deputy Minister of Economy Mr. Sahid Mammadov visited India to participate in the Vibrant Gujarat Summit in January 2019. Mr. Mukhtar Babayev, Minister of Ecology and Natural Resources, visited Delhi to attend the 5th Inter-Governmental Commission in October 2018. Mr. Samir Sharifov, Minister of Finance, visited India in February 2018. Mr. Nagif Hamzayev, Member of Parliament, visited India under ICCR’s Distinguished Visitors’ Programme in August 2019.

In June 1998, the two countries signed an agreement on economic and technical cooperation, and in April 2007, they signed a deal to establish the India-Azerbaijan Intergovernmental Commission on Trade, Economic, Scientific, and Technological Cooperation. This marked the beginning of a stronger and more meaningful relationship between the two nations, creating new opportunities for cooperation and mutual benefit. However, in recent decades, China’s growing influence in Eurasia and the ongoing hostility between India and Pakistan have hindered India’s efforts to establish direct connectivity for robust trade and economic relations with the region.

To overcome these obstacles and revive its historic relationship with the Caucasus region, India has pursued several connectivity projects. In 2002, India, Russia, and Iran signed an intergovernmental agreement to construct the 7,200-km International North-South Transport Corridor (INSTC), a multimodal transport route that includes sea, rail, and road links connecting Mumbai (India) to Saint Petersburg (Russia) via Iran. India has also invested heavily in the Chabahar Port in the Iranian province of Sistan-Balochistan. However, these initiatives have faced delays due to investment challenges following renewed US sanctions on Iran, inter-regional disputes, and bureaucratic hurdles for certain projects, such as the 628 km-long Chabahar-Zahedan railway line and the 164 km Rasht-Astara railway line. Nevertheless, in July 2022, the INSTC recorded its first shipment from Russia’s Astrakhan Port to India’s Jawaharlal Nehru Port.

Azerbaijan became part of the INSTC in 2005, and its well-developed railways and strategic seaport in Baku have paved the way for the Western Route of the INSTC, which runs west of the Caspian Sea. The Western Route connects the Iranian ports of Chabahar and Bandar Abbas in the Arabian Sea to the vast railway networks in Eurasia, particularly the Baku-Tbilisi-Batumi or Baku-Tbilisi-Kars transnational rail connections constructed under the Trans-Caspian International Transport Route (TITR), sometimes referred to as the ‘Middle Corridor.’ The TITR is a multimodal route that enhances connectivity between Asia and Europe, spanning Central Asia, the Caspian Sea, and the South Caucasus. This makes the Western Corridor of the INSTC via Azerbaijan more economical and strategic for India.

Furthermore, the impacts of the Russia-Ukraine war, the COVID-19 pandemic, and the 2021 Suez Canal blockade have underscored the need for new transport corridors and connectivity projects across Eurasia, which spans an area of 54.76 million square kilometers and is home to about 60 percent of the world’s population. At the same time, India’s robust economy requires connectivity to the vast Eurasian markets to ensure reliable, resilient, and diversified supply chains. Enhancing connectivity between India and the broader Eurasian region is vital for fostering regional stability and promoting economic growth for the countries involved.

One of the most important areas of collaboration between India and Azerbaijan is in the field of energy. Azerbaijan, rich in oil and natural gas reserves, presents India with an opportunity to diversify its energy sources. Energy security remains a priority for India, given its growing population, industrial expansion, and increasing demand for energy. Azerbaijan’s large deposits of hydrocarbons make it an essential partner for India in the quest for alternative energy suppliers.

The Southern Gas Corridor, which connects Azerbaijan’s Shah Deniz field to Europe, exemplifies the potential of this energy partnership. Azerbaijan, as a key player in the Caspian region, is well-positioned to offer India access to its oil and gas resources. By establishing reliable trade routes for energy, India can mitigate the risks posed by its dependence on traditional sources of energy, such as the Middle East.

Furthermore, Azerbaijan is exploring renewable energy sources, particularly in wind and solar power, areas where India has a burgeoning expertise. Cooperation in the development of these technologies could be another area of significant bilateral collaboration. India’s experience with large-scale renewable projects, such as its solar energy program, could provide Azerbaijan with the technical know-how required to build and scale such projects.

Azerbaijan’s favorable business climate, along with India’s growing demand for goods and services, presents an excellent opportunity for trade expansion. India is the seventh-largest trading partner of Azerbaijan, with bilateral trade totaling US$ 1.435 billion in 2023. That same year, India became the third-largest destination for Azerbaijan’s crude oil. Azerbaijan also saw a significant increase in tourism from India, with over 115,000 Indian visitors, nearly double the number of arrivals in 2022. As the fourth-largest source of inbound tourists to Azerbaijan, after Russia, Türkiye, and Iran, India stands as the largest source of tourists for Azerbaijan when excluding neighboring countries. Direct flight connectivity between New Delhi and Baku has grown to 10 flights per week, while there are 4 direct flights per week between Mumbai and Baku. Additionally, in the past four years, around 30 Indian movies and advertisements have been filmed at various locations across Azerbaijan.

The Indian community in Azerbaijan comprises of more than 1500 people, including professionals employed with international companies in the oil and gas sector, businessmen engaged in commodities trading, catering & restaurant business, and construction workers on short-term contracts. There are five Indian associations in Azerbaijan, viz., Indian Association Azerbaijan (IAA), Baku Malyalee Association (BMA), Baku Tamil Sangam (BTS), Azerbaijan Telugu Association (ATA), and Indian Student Association Azerbaijan (ISAA), which work in close association with the Embassy. They regularly hold social events to celebrate major Indian festivals and events. The Indian community is very active both professionally and socially and has integrated well with the local population.

The absence of regular high-level visits between both the nations has been a barrier to strengthening the relationship. While Azerbaijan is an important partner for India both geographically and economically in the Caucasus region, high-level political visits are essential to further advancing the bilateral relationship. The Indian Ambassador to Azerbaijan, Sridharan Madhusudhanan, emphasized the importance of holding a dialogue between the two countries to address and resolve any problematic issues in their bilateral relations.

For India, enhancing its strategic ties with Azerbaijan is essential in ensuring its security and maintaining influence in the broader Eurasian region. India’s “Act East” policy and its increasing engagement with Central Asia and the South Caucasus align well with Azerbaijan’s geopolitical interests. Both countries are keen to expand their influence in international organizations such as the United Nations, the Shanghai Cooperation Organization (SCO), and the Commonwealth of Independent States (CIS). Enhanced defence and strategic cooperation could also pave the way for greater collaboration in peacekeeping missions and multilateral security initiatives.

India and Azerbaijan share a long history of cultural and economic ties, yet there remain numerous untapped opportunities for further cooperation between the two nations. Azerbaijan is India’s largest trading partner in the Caucasus region, and New Delhi stands as one of the biggest investors in Baku. Through sustained diplomatic efforts, investment in people-to-people connections, and strategic cooperation, India and Azerbaijan can build a future of prosperity, security, and mutual benefit. The next chapter in this dynamic partnership promises substantial rewards for both nations as they collaborate to address common challenges and seize new opportunities.