India-Austria Relations Introduction

• Prime Minister’s Historic Visit:
  • PM Narendra Modi’s visit to Vienna marked the first by an Indian PM in 41 years since Indira Gandhi’s visit in 1983.
  • This year celebrates the 75th anniversary of diplomatic relations between India and Austria, emphasizing long-standing bilateral ties.
• Strategic Timing:
  • The visit followed Modi’s meeting with President Vladimir Putin in Moscow.
  • Austria’s unique position as a non-NATO European country adds strategic significance, particularly in the context of the Russia-Ukraine conflict.

Highlights of PM Modi’s Visit

• Economic and Technological Cooperation:
  • Emphasis on enhancing economic and technological ties, recognizing Austria’s expertise in industries like machinery and pharmaceuticals.
  • Launch of a high-level bilateral Business Forum to explore green and digital technologies, renewable energy, and water management.
  • Example: Austrian firm Andritz’s involvement in India’s hydroelectric projects.
• India-Austria Startup Bridge:
  • Aimed at fostering innovation and entrepreneurship between the two nations.
  • Example: Collaboration between Austrian startup Geogebra and Indian Edutech company Byju’s.
• Global and Regional Alignment:
  • Commitment to a free and open Indo-Pacific region.
  • Support for peaceful resolution of the Ukraine conflict, demonstrating a shared commitment to global peace.
• Climate Action and Sustainability:
  • Collaboration on renewable energy, focusing on Austria’s Hydrogen Strategy and India’s Green Hydrogen Mission.
  • Support for climate neutrality goals: EU by 2050, Austria by 2040, and India by 2070.
• Cultural and People-to-People Ties:
  • Promotion of cultural exchanges, including the growing interest in yoga and Ayurveda in Austria.
• Global Governance Coordination:
  • Support for comprehensive reforms of the United Nations.
  • Mutual support for UNSC candidatures: Austria for 2027-28 and India for 2028-29.
  • Invitation for Austria to join the International Solar Alliance.

Evolution of India-Austria Relations

• Diplomatic Establishment:
  • Diplomatic relations initiated in 1949 by Jawaharlal Nehru and Chancellor Leopold Figl.
  • Example: India’s support for Austria’s post-WWII reconstruction.
• Support for Austria’s Independence:
  • India’s intervention in favor of Austria during its negotiations with the Soviet Union in 1953, leading to Austria’s independence in 1955.
• State Visits:
  • Nehru’s visit in 1955, Indira Gandhi’s visits in 1971 and 1983, and visits by Austrian Chancellors Bruno Kreisky (1980) and Fred Sinowatz (1984).
  • Recent visits by Indian Presidents Narayanan (1999) and Patil (2011), and Modi’s 2023 visit.

Areas of Cooperation

• Political Cooperation:
  • Strengthened by high-level exchanges, ministerial visits, and parliamentary engagements.
  • Example: Recent discussions on UNSC reforms and global governance.
• Economic Cooperation:
  • Indo-Austrian Joint Economic Commission (JEC) established in 1983 to enhance bilateral economic interactions.
  • Significant bilateral trade, with 2022 figures at USD 2.84 billion.
  • Key sectors: steel, manufacturing technology, railways, and metallurgy.
  • Example: Wipro Technologies and Shilpa Medicare’s investments in Austria.
• Science and Technology:
  • India launched Austria’s first satellites in 2013, fostering collaboration in space technology.
  • Example: PSLV-C20 launch of TUGSAT-1/BRITE and UniBRITE satellites.
• Cultural Cooperation:
  • Historical ties dating back to the 16th century.
  • Notable visits by Rabindranath Tagore in 1921 and 1926.
  • Contemporary interest in Indian literature, theater, Ayurveda, and yoga.
  • Example: Tagore’s famous lecture “The Religion of the Forest” in Vienna in 1921.
• Diaspora Connection:
  • Over 31,000 Indians in Austria, mainly from Kerala and Punjab.
  • Predominantly professionals in healthcare and multilateral UN bodies.
  • Example: Significant Indian community in Vienna contributing to the healthcare sector.

Significance of Relations

• Geo-Political Significance:
  • Shared values of democracy and pluralism.
  • Austria’s support for India’s bid for a permanent UNSC seat.
  • Example: Joint statements on global peace and security during high-level visits.
• Economic Significance:
  • Austria’s economic strength and its strategic position in the European Union.
  • Important trading partner within the EU, especially with Central and Eastern European countries.
  • Example: Increased trade and investment opportunities highlighted during the recent Business Forum.
• Technological Significance:
  • Austria’s expertise in Green Hydrogen and renewable technologies aligning with India’s Green Hydrogen Mission.
  • Joint research initiatives in renewable energy technologies, such as collaborative projects on hydrogen fuel cells between Austrian firms and Indian institutions like the Council of Scientific and Industrial Research (CSIR).
• Shared Global Perspectives:
  • Balanced approaches to global conflicts, such as the Russia-Ukraine conflict.
  • Austria’s neutral stance based on the 1955 Austrian State Treaty.
  • Example: Continued diplomatic engagement with Russia by both nations amidst the conflict.

Challenges in Cooperation

• Geographical Distance:
  • The physical distance limits bilateral engagements.
  • Example: Increased travel time and logistical complexities in organizing high-level visits.
• Trade Imbalance:
  • Significant trade imbalance in favor of Austria.
  • Example: India’s higher imports of machinery and pharmaceuticals compared to its exports.
• Economic Structure Differences:
  • Diverse economic bases: India’s service and agriculture vs. Austria’s industrial and manufacturing.
  • Example: Limited compatibility in some industrial sectors affecting trade penetration.
• Visa Issues:
  • Slow visa policies affecting people-to-people contacts and business travel.
  • Example: Delayed visa processing impacting business delegations and tourism.

Way Forward

• Mobility Partnership Agreement:
  • Signing a Comprehensive Migration and Mobility Partnership Agreement to address visa and mobility issues.
  • Example: Facilitating smoother movement of professionals and students between the two countries.
• Enhanced Cooperation:
  • Focus on renewable energy, technology, and education.
  • Example: Joint ventures in green technology and academic exchanges.
• Geopolitical Coordination:
  • Align on Indo-Pacific strategies and peace efforts in Europe and the Middle East.
  • Example: Joint initiatives for regional stability and maritime security.
• Leveraging Complementarities:
  • Utilize Austria’s neutral position and India’s geopolitical influence for mutual benefits.
  • Explore synergies between India’s development priorities and Austria’s technological capabilities.
  • Example: Collaborative projects in smart city development and digital infrastructure.