External Relations

India was among the first countries to establish diplomatic relations with the (then) EEC. The EU is India’s largest export destination and is also the second largest source of foreign direct investment into India. India’s relations with the EU have progressed from an economic cooperation to a higher level of a Strategic Partnership, extending beyond economic cooperation in trade and investment to include other social sectors, science and technology sectors including aerospace and transportation, besides culture and civil society initiatives. EC cooperation with India uses a two-pronged approach, helping India meet the Millennium Development Goals by supporting government led sector programmes in the social sector (health/education); and implementing the EU India Strategic Partnership through a Joint Action Plan, supporting India’s pro-poor sector reform policies and dialogue in economic, civil society and culture, and academic areas of mutual interest.

The EU supports India in its education and healthcare sectors, with a current funding in excess of 100 million euros under various programmes. India and EU have signed agreements for cooperation in the fields of Science & Technology, Information and Communications Technology, and Customs. The EU India Joint Action Plan (signed in September 2005) seeks to support India’s pro-poor sector reform policies and dialogue in economic, civil society and culture, and academic areas of mutual interest, and has an indicative financial envelope of more than 60 million euros. The EC also supports two Indian states- Chhattisgarh and Rajasthan-directly, under its State partnerships Programme, using a budgetary support mechanism for specific sectors. Besides the EC, other EU member states have bilateral assistance programmes in India as well.

India and Russia have had a very cordial and friendly relationship historically, especially during the cold war period.  The two countries have reinforced their strategic partnership in both bilateral relations and in the international arena. Russia also supports India’s inclusion to the permanent members of the UN Security Council, and has extended cooperation to counter terrorism. India and Russia have cooperated in the Peaceful Uses of Nuclear Energy, hydro-electric and thermal power sectors as well as development of new oil and gas fields and the means of their transportation in Russia, India and other countries. Other areas of cooperation are in Science & Technology, Tourism, and Regional Cooperation between the regions of the Russian Federation and the States and Union Territories of India.

India has had close cultural and economic ties with Southeast Asian countries. As part of India’s 'Look East' policy' initiated in the 1990s, India became a Sectoral Dialogue Partner of ASEAN in 1992, and has upgraded its relations with ASEAN to summit level in 2001. Declarations and partnerships have been signed on counter terrorism and a framework agreement on economic cooperation. Currently, India collaborates closely with ASEAN countries in various fields such as trade and investment, Science and Technology, Information Technology, Biotechnology, Tourism, Space technology, Human Resource Development, Transport and Infrastructure.

India has international borders with China, Nepal, Myanmar, Bhutan, Bangladesh, Sri Lanka and Pakistan. India’s political relationship with these countries covers a whole spectrum: a peace dialogue with Pakistan amidst military readiness, cautious diplomacy and trade initiative with China, fresh diplomatic challenges in Nepal and Bangladesh, and a comprehensive economic partnership with Sri Lanka. India’s economic and military dominance in South Asia are seen as opportunities as well as threats by some of its neighbours, which impede the implementation of the South Asia Free Trade Area, which came into effect on January 1, 2006.