Recently, the India-Austria relations has assumed significance with the visit of the Indian PM to the European Country. The recent visit of PM Narendra Modi’s visit to Vienna was the first by an Indian Prime Minister to Austria since June 1983, when Indira Gandhi travelled to the country. This was the Prime Minister’s first visit to Austria and that of an Indian Prime Minister after 41 years. This year marks the 75th year of diplomatic relations between the two countries. The Prime Minister’s decision to travel to Vienna immediately after he met President Vladimir Putin in Moscow was significant, as Austria is a European country that is not a part of NATO.
| Highlight of PM’s Visit to Austria a. Enhanced economic and technological cooperation- Both PM Modi and Chancellor Nehammer identified stronger economic and technological ties as a strategic goal between India and Austria. They welcomed the first high-level bilateral Business Forum and discussed opportunities for collaboration in areas like green and digital technologies, renewable energy, water management. b. India-Austria Startup Bridge- India-Austria Startup Bridge was launched to foster innovation and entrepreneurship between countries. c. Alignment on global and regional issues- Both countries affirmed their commitment to a free and open Indo-Pacific region and peaceful resolution of Ukraine conflict. d. Cooperation on climate action and sustainability- Both countries pledged to collaborate on renewable energy, with a specific focus on Austria’s Hydrogen Strategy and India’s Green Hydrogen Mission. Both the countries expressed support for EU’s target for climate neutrality by 2050, Austria’s goal for 2040, and India’s aim for net zero emissions by 2070. e. Strengthening cultural and people-to-people ties- The leaders appreciated the rich tradition of cultural exchanges and the growing interest in yoga and Ayurveda in Austria. They encouraged efforts to promote bilateral cultural ties and tourism. f. Coordination on global governance- The leaders reiterated their commitment to achieving comprehensive reforms of the United Nations, including its Security Council. India reiterated its support for Austria’s UNSC candidature for 2027-28, while Austria expressed support for India’s candidature in 2028-29. India invited Austria to join the International Solar Alliance. |
What is the History of evolution of India-Austria Relations?
| Establishment of Diplomatic Relations | Diplomatic relations between India and Austria were established in 1949 by India’s first Prime Minister Jawaharlal Nehru and Austria’s first post-World War II Chancellor Leopold Figl. |
| India’s Intervention in the State Treaty of Austria | In 1953, India intervened in favour of Austria during its negotiations with the Soviet Union on the State Treaty of Austria that resulted in the independence of Austria in 1955. |
| State Visits | The visits by the leaders of the two states have strengthened the India-Austria Relations. Prime Minister Nehru visited Austria in 1955, which was the first Prime Ministerial visit. Prime Minister Indira Gandhi visited Austria in 1971 and 1983. Austrian Chancellor Bruno Kreisky visited India in 1980. Austrian Chancellor Fred Sinowatz visited India in 1984. President K.R. Narayanan visited Austria in 1999, with President Pratibha Patil visiting in 2011. |
| Recent State Visit | In the recent state visit, PM Modi and Chancellor Nehammer discussed for upgradation of bilateral partnerships, focusing on infrastructure, renewable energy, e-commerce, fintech, and media. |
What are the areas of cooperation between India and Austria?
India and Austria have a multifaceted partnership spanning political, economic, sectoral, and cultural domains, with regular high-level exchanges and growing cooperation across various areas. The main areas of Cooperation between India and Austria are explained below-
1. Political Cooperation- The India Austria political relations have been strengthened by the high level political exchanges by the heads of the states, ministerial level engagements and visits, parliamentary level exchanges.
2. Economic Cooperation- India-Austria economic and commercial cooperation constitutes an important dimension of the bilateral relationship. The two sides have taken steps to strengthen and deepen bilateral economic cooperation.
a. Establishment of The Indo-Austrian Joint Economic Commission (JEC)- The Indo-Austrian Joint Economic Commission (JEC) was established in 1983. It provides a forum for bilateral interaction between the governmental Ministries and Chambers of Commerce and Industry. There have been more than 200 collaborations, including 100 technical collaboration and 60 joint ventures between Indian and Austrian firms especially in the fields of steel, manufacturing technology, railway and transport, equipment and metallurgy.
b. Indo-Austria Bilateral Trade- In 2022, the bilateral trade is USD 2.84 billion with and increase on 14.97 % over the 2021 levels. For 2021, Indian exports to Austria were USD 1.29 billion and imports were USD 1.18 billion.
Indian key exports to Austria: Electronic Goods, Apparels, Textile, Footwear, Rubber articles, Vehicles & Railways parts, Electrical machinery and Mechanical appliances.
India’s key imports from Austria: Machinery, Mechanical appliances, Railway parts, Iron and Steel etc.
c. Investment- The key Austrian investors in India include – Plassner & Theurer (Railways track laying machines), Andritz (machines for hydroelectric power plants), AMS Semiconductors (semiconductors). The key Indian Investors in Austria include Wipro Technologies, Shilpa Medicare, VA Tecg Wabag Ltd, KTM-Bajaj Auto. In December 2021, Indian Edutech company Byju’s acquired an Austrian start-up Geogebra for about USD 100 million.
3. Science and Technology Cooperation- Austria’s first two satellites TUGSAT-1/BRITE and UniBRITE were launched by India’s PSLV–C20 from Satish Dhawan Space Centre, Sriharikota on 2013. The two satellites are developed in collaboration with the Institute of Communication Networks and Satellite Communications (IKS) at the Technical University of Graz (TUG), Institute for Astronomy of the University of Vienna, and the Space Flight Lab (SFL) at the University of Toronto Institute Of Aerospace Studies (UTIAS).
4. Cultural Cooperation- The Indo-Austrian cultural relations have a long tradition dating back to 16th century when Balthasar Springer traveled from Tyrol in 1505 to India along with the third Portuguese fleet.
a. Visit of Rabindranath Tagore- The visit of India’s philosopher-poet and Nobel Laureate Rabindranath Tagore twice to Vienna – in 1921 and 1926 was one of the crucial bridges of cultural and intellectual exchange between India and Austria. Gurudev’s famous lecture in 1921 ‘The religion of the forest’, portrayed the value of getting closer to nature and learning union and compassion.
b. Contemporary Indian Culture- There is a lot of interest in contemporary Indian literature and theater. Ayurveda, the Indian traditional system of medicine has been widely acknowledged and practiced in Austria. The holistic approach of Yoga in health care and well being has led many Austrians to embrace Yoga and is testified by the presence of many Yoga schools in Vienna and other Austrian cities.
5. Diaspora Connection- There are an estimated over 31,000 Indians (majority from Kerala and Punjab) living in Austria. The Indian diaspora mainly consists of professionals working primarily in the Health Care sector and in the multilateral UN bodies, businessmen and self-employed self-employed individuals.
What is the significance of India Austria Relations?
1. Geo-political Significance- Both countries share values of democracy and pluralism, and have cooperated on global issues like UN Security Council reforms. Austria has supported India’s bid for a permanent UNSC seat, recognizing India’s growing global role.
2. Economic Significance- Austria is one of the richest countries in the European Union. It is an important link for India in its relationship with Europe, especially with countries of central and Eastern Europe.
3. Technological Significance- Austria has expertise in Green Hydrogen and other renewable technologies. Austrian expertise can be of immense significance for India’s Green Hydrogen Mission, and India’s aim for net zero emissions by 2070.
4. Shared Global Perspectives- Both countries’ have adopted balanced approaches to the Russia-Ukraine conflict, maintaining diplomatic and commercial relations amidst global tensions. Austria has adopted neutral stance which is established by the 1955 Austrian State Treaty.
What are the Challenges in India Austria Cooperation?
India and Austria have generally maintained cordial diplomatic relations, but there are several challenges that have affected their relationship.
1. Geographical Distance- India and Austria are geographically distant from each other. This has limited the frequency and depth of bilateral engagements.
2. Trade Imbalance- There exists a significant trade imbalance in favor of Austria. India mainly imports high-value goods like machinery, pharmaceuticals, and chemicals from Austria while exporting relatively less.
3. Differences in Economic Structures- India’s economy is primarily driven by services and agriculture, whereas Austria has a strong industrial and manufacturing base. This difference in economic structures have led to low trade bilateral trade penetration.
4. Delay in Visa Issues- The slow and delayed Visa policies and procedures for travel between the two countries can impact people-to-people contacts, business travel, and tourism.
What Should be the Way Forward?
1. Mobility Partnership Agreement- The signing of “Comprehensive Migration and Mobility Partnership Agreement” between India and Austria will help in the redressal of the Visa and Mobility issues between the two nations.
2. Enhancement of Cooperation- India and Austria must enhance cooperation in areas such as renewable energy, technology, and education.
3. Enhancing Geopolitical Coordination- India and Austria must align on a free, open, and rules-based Indo-Pacific and support peace efforts in regions like Europe and the Middle East.
4. Leveraging Complementarities- India must leverage Austria’s position as a neutral European power and India’s role as a geopolitical bridge-builder for mutual benefit. India and Austria must explore synergies between India’s development priorities and Austria’s technological and industrial capabilities.
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