February 5, 2020

India & Austria: An Alliance from Nicobar to Nuclear

Talk to any seasoned diplomat who has had the privilege of observing India and Austria’s ‘bilateralisms’, and you will undoubtedly hear of the blossoming partnership between these two dynamic nations. Though apart by miles and oceans, India and Austria have built strong bridges of friendship and collaboration that continue to expand, as well as bring forth enticing new realms.

Historical Bonds

Though India and Austria are half a world away from each other, connections between these two cultures, surprisingly, stretch back centuries. What is well known is that India hosted Austrians at Nicobar in the 19th century; but even during the height of the Austro-Hungarian Empire, Indian traders and merchants maintained robust ties with Vienna. Trade involved colourful textiles, spices and other treasured goods along the ancient Silk Road.

The first official diplomatic engagement from the newly crowned capital of Delhi began in the 1920s itself, when India established an honorary consulate in Vienna.

Reciprocally, Austria was one of the first European nations to establish bilateral relations with the newly sovereign nation in 1947. The ‘50s also saw visits & high-level engagements by government officials, including Prime Minister Jawaharlal Nehru and Chancellor Julius Raab. These early interactions became laid the vital seeds of growth, which would foster a solid foundation for the warm association that continues to this day.

Over the decades, India and Austria have supported each other in a variety of multilateral fora, like the UN, G77 and the Nuclear Suppliers Group (India’s nuclear imports from Austria already stand at $181.25 million as of 2022) . Such cooperation also highlights the shared values between the world’s largest democracy and the sophisticated European nation.

Recent Engagement

With the century of globalisation in full swing, India and Austria have taken their partnership to new heights through a series of high-level bilateral agreements. An earnest & major milestone between the two was marked in 2012, when Chancellor Faymann visited India and met with Prime Minister Manmohan Singh & President Pranab Mukherjee. This marked the first visit of an Austrian head of government to India in over two decades, contributing – in no small measure – to the essence of economic cooperation, mutual growth and kinship between the developing and the developed world.

The leaders announced a joint declaration on strategic partnership, covering collaboration in areas such as infrastructure, vocational education, renewable energy and tourism. Additional memorandums of understanding (MoUs) covered diverse topics like railway technology, standardisation and intellectual property rights. Such agreements underscored the two nations’ commitment to strengthening ties.

This momentum carried over into 2018 ,when President Van der Bellen visited India for two days. He and Prime Minister Modi facilitated the signing of MoUs on a diverse set of themes, from defence cooperation, technology transfer and development, to a symposium on Ayurvedic practice & enterprise. The countries also agreed to expedite work on a proposed FTA.

Most recently, political and business leaders came together for the first India-Austria Business Forum in Vienna. Attended by top-level dignitaries like India’s Minister of Commerce and Industry and Austria’s Federal Minister for Digital and Economic Affairs, it highlighted massive opportunities for bilateral trade and investment across sectors like infrastructure, logistics, IT and life sciences. And they have already starting manifesting, a perfect example of which is the collaboration between ISRO & Austria’s ESA in space exploration and technology.

In terms of international mobility, External Affairs Minister S. Jaishankar recently met with his Austrian counterpart Alexander Schallenberg right after the Munich Security Conference, putting into motion the vital Comprehensive Migration and Mobility Partnership Agreement to enhance & streamline the transfer of human resources bilaterally, while minimizing the scope for illegal immigration.

Areas Ripe for Future Growth

As India and Austria continue on this thriving momentum, an abundance of openings have emerged that can catalyse new ventures fuelled by collaboration and partnership.

Infrastructure & logistics is one field with tremendous potential. India plans to invest $1.4 trillion in infrastructure during 2019-2023 to promote sustainable growth and development, and it is a key sector in many a programme, such as those of Smart Cities & India Logistics. Austrian companies, with their expertise in construction, engineering and green technologies, are ideally positioned to support these efforts, and the opportunity is ripe for FDI & knowledge transfer to the benefit of both republics.

Tourism is another area for growth. India is projected to account for over 50 million outbound tourists by 2022. As more Indians travel abroad, Austria can attract its share through joint marketing campaigns highlighting the allure of Alpine scenery, world-class museums and musical heritage, and broaden the tourism industry exposure beyond just Vienna.

Lastly, educational exchanges provide a robust and enduring bridge between the two cultures. Austria already hosts a large Indian student population at its universities. Expanding these prestigious scholarship programmes and research partnerships between our institutions can enable valuable skill, knowledge and technology transfer.

As an optimist, I see India and Austria at the beginning of an extraordinary new phase of collaboration. By building on a shared ethos, harnessing each other’s capabilities, we can become a model of trusted partners. It is beyond a shadow of doubt that we are poised to achieve great things, both bilaterally and as voices for progress globally. The future shines bright for this relationship, that manages to be both centuries old yet still new in its potential.

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