India-Mongolia Relations: Implications for

Regional Cooperation in North East Asia

Sharad K. Soni *(India)

50
Abstract

India and Mongolia have maintained close historico-cultural ties since ancient

times, notwithstanding the physical barrier. Based on common Asian heritage and
Buddhist culture their traditional relations were further cemented by the establishment
of diplomatic relations in 1955. The years that followed brought both the countries
even much closer due to commonality of traditions, culture and customs thereby
reinvigorating the process of bilateral cooperation in diverse areas. However, in the
post-cold war era, Mongolias emergence as a democratic and market economy oriented
country has lent a new dimension to India-Mongolia relationship. The North East Asian
identity of Mongolia together with socio-economic and political ties with other countries
particularly in Asia generates much scope for further expansion and concretization of
Indo-Mongolian cooperation in various sectors. It is in this backdrop that this paper
seeks to analyse the extent and pattern of relations between India and Mongolia and
their implications for regional cooperation in North East Asia. While doing so it also
delves into Indias new role in East Asia besides highlighting positive and negative

* Dr. Sharad K. Soni is Assistant Professor of Mongolian Studies at the Centre for South, Central, Southeast Asian and
Southwest Pacific Studies, School of International Studies, Jawaharlal Nehru University, New Delhi (India). He can be
contacted at sharadksoni@gmail.com .
This article is a revised version of a paper presented at a seminar on India's Foreign Policy: Post -11th September, Challenges
and Opportunities held at Dayal Singh College, Delhi University, Delhi (India) on 11-12 April 2007.
points concerning Mongolias involvement in regional cooperation/integration process in
North East Asia.

Key Words: historico-cultural bonds, spiritual neighbour, third neighbour,

geopolitical, geostrategic, regional cooperation, strategic partnership,
cooperative partnership, Khaan Quest, East Asia Summit, Asian Economic
Community

51
Ever since the world entered into the 21st century every country, both big as well as

small, around the globe began to witness a new stage of development in their domestic

India-Mongolia Relations: Implications for Regional Cooperation in North East Asia

and external affairs. Asia, in particular, has attracted global attention particularly
in terms of economic development by creating constructive bilateral partnerships in
trade, joint ventures, and technology, especially the information technology. India and
Mongolia as the two ancient civilizations of Asia whose spiritual and cultural bonds go
back into history are the examples of such initiatives. Though geographically far apart,
the two countries have had civilisational links spanning over a period of 2700 years.
These links are fascinating, intense and inseparable; transcending all human activities
from language, literature, religion, medicine, and folklore to culture and traditions.
Given such a rich legacy of interaction, assimilation and exchanges, it is but natural that
the two countries have established very close and friendly relations in modern times so
much so that they are known as spiritual neighbours. Mongolia, which now identifies
itself more as a country belonging to the North East Asian region, has been trying hard
to be participant in the North East Asias regional cooperation for mutual benefits. 1
Following pages offer various aspects of India-Mongolia relations and their relevance for
regional cooperation in North East Asia, which has now become an important sub-region
with the expansion of the East Asia region.

1For a clear understanding on Mongolia's new identity, see Tsedendamba Batbayar, "Mongolia's New Identity and Security
Dilemmas", The Mongolian Journal of International Affairs (Ulaanbaatar), nos.8-9, 2002, pp.3-11.
 Historico-Cultural and Political Aspect of India-
Mongolia Relations

The first direct political contact between India and Mongolia took place around
the time of Indias independence, when a three-member Mongolian delegation came
to New Delhi to attend the First Asian Relations Conference held in March 1947 at the
initiative of Pt. Jawaharlal Nehru, who was then the Prime Minister during the interim
period before independence of India. The main objective of holding this conference was
to bring Asian nations together at a common platform and to understand their social,
economic and political problems and also to promote cooperation among the people of

52 Asia.2 Since then the leadership of the two countries have been in constant contact with
each other. This led to establishment of diplomatic relations between the two countries

on 24 December 1955. India was not only the first country outside the then Socialist bloc
to establish full diplomatic ties with Mongolia but also made significant contribution

to Ulaanbaatars efforts of obtaining a full-fledged membership of the United Nations

in 1961. In recent years Mongolias progress in building and strengthening democratic
traditions and institutions as well as efforts to develop its economy has been admirable.
India, as a close friend, would always like to see Mongolia flourish and prosper, and,
therefore, Indias contribution towards this process has been tremendous.
The strategic political relationship between the two countries is influenced by
historico-cultural bonds that India and Mongolia have due to their being the southern
and northern ends of a Buddhist arch. Buddhism not only helped the hitherto scattered
and nomadic Mongols become united and civilized but also enabled the Mongols to
learn about various dimensions of Indian philosophy and applied knowledge such as
astrology, poetry, art, medicine, etc. During the nineteenth and early twentieth centuries
Buddhism served the Mongols as a prime source of common identity and an effective
instrument for whipping up the Mongol nationalism against the Manchu-Qing rule. The
people of India living in the Himalayan region have racial, cultural and religious affinity;
even their food habits and customs are identical with those of Mongols.

2Sharad K. Soni, Mongolia-India Relations (1955-1989) , Unpublished M.Phil Dissertation, Jawaharlal Nehru University,
New Delhi, 1990, p.5.
 In the post-Soviet era Mongolias freedom of strategic choice has been able to
highlight the commonality of interests so much so that both countries can now clearly
define their geostrategic interests. 3 India can be visualized as the third alternative
for providing security and development in Mongolia, the first and second are the
two geographical neighbours Russia and China. As China has already become the
largest trade partner of Mongolia it appears that to some extent it has been able to fill
the economic vacuum in Mongolia created due to the collapse of the former Soviet
Union. Yet, as some analysts believe, Mongolia will have to keep a watch on both the
neighbours in order to ensure that it no longer faces the cold war like situation. Chinese
leadership though has been repeatedly saying that China will never be a military threat
to any nation. 4 Russia, on the other hand, seems to be not in a position to provide 53
the protective shield that it had earlier in Mongolia. 5 Japanese and western interests

are limited mainly to economic interests due to Mongolias rich natural resources. But

India-Mongolia Relations: Implications for Regional Cooperation in North East Asia

interestingly and quite seriously, the USA is being considered as Mongolias third
neighbour.6 But on the other hand, Mongolia appears to be in a serious dilemma of how
to continue forging value based relations with the United States without jeopardizing its
increasingly important economic ties with China. What Mongolia expects from India is
yet to be seen considering the latter being the formers spiritual neighbour.
Now the question arises as to why India is known as Mongolias spiritual
neighbour. First of all the fact that India is the birthplace of Buddha provides enough
reason for the Buddhist Mongolia to call India as its Spiritual neighbour. And
secondly, the River Ganga is revered as sacred by the Mongolians in the same way as
Indians do. For example, in Mongolia, anybody who keeps Gangajal (the holy water

3Ranjan Gupta, "India and Mongolia: A Geostrategic Perspective", Regional Security Issues and Mongolia (Ulaanbaatar),
no.6, 1999, p.30.
4Recently during a speech delivered at Tokyo's Waseda University, Chinese President Hu Jintao ruled out any
possibility of China becoming a "military threat to any country." He said, "China will never seek hegemony or
territorial expansion", adding that "peaceful development is the strategic choice of the Chinese government and its
people." See Chong Zi and Qin Jize, "President Hu Pledges Peaceful Development," at http://www.chinadaily.com.cn//
china/2008-5/09/content_6672143.htm
5Gupta, op.cit, p.30.
6A US analyst, however, believes that no American official today will declare that the US is willing to protect Mongolia
from any enemies, see Alicia Campi, "Mongolia in North East Asia The New Realities", The Mongolian Journal of
International Affairs (Ulaanbaatar), no.12, 2005, p.51.
 from River Ganga) at home is considered as the luckiest one. In fact, there is a group of
lakes known as Ganga Lake, which is located in the eastern part of Mongolia, about
12 kms. from Dariganga Sum (county or district), in Sukhbaatar aimag (province). The
legend has it that a long time back a man who was a native of Dariganga visited India.
While returning back he brought with him holy water from the River Ganga, which
he placed in the sand, thus the formation of Ganga Lake took place. This is the only
group of lakes, which is located in desert and is considered as sacred by the people of
Mongolia. Besides, India is venerated in Mongolia not only as a homeland of Buddha but
also as a country to which the Mongolian people attribute all that have been considered
the highest attainments of wisdom and learning.7 That is to say India is seen as such a

54 divine place, where emphasis is given on Buddhist principles of denouncing anger and
hatred, violence and rancor, apart from promoting universal peace and harmony through

individual attainment of compassion and serenity.8

The spiritual linkages between India and Mongolia, therefore, make it imperative for

the two sides to cooperate each other not only for mutual benefits but also for regional
integration process. Mongolias focus today is on pressing socio-economic issues close at
hand. Unemployment, poverty, speedy urbanization and the ensuing social displacement
pose potential threats to long-term stability and economic prosperity of the country. 9
Moreover, it becomes even more difficult task in the absence of a meaningful regional
cooperation framework. Indias ongoing role at least in East Asia, which includes both
the South East as well as North East Asia may have far reaching consequences to the
extent of benefiting Mongolia so far as issue of regional cooperation is concerned.
Obviously, Mongolia could seek Indias support and certainly in view of the recent
developments in India-Mongolia relations it seems possible in every sense.
Following the collapse of the erstwhile Soviet Union and consequently the
emergence of Democratic Mongolia, there have been new developments in Ulaanbaatars
relations with the outside world. As regards India, ever since the two countries signed

7Vasanta Iyer, "Cultural Perspectives in Modern Mongolia," in K. Warikoo and Dawa Norbu (eds.), Ethnicity and Politics
in Central Asia (New Delhi: South Asian Publishers, 1992), p.268.
8Ibid , p.267.
9Sharad K Soni, "India's New Role in East Asia: Implications for Mongolia", The Mongolian Journal of International
Affairs (Ulaanbaatar), no.13, 2006, p.41.
the Treaty of Friendly Relations and Cooperation in 1994, a solid foundation was laid
down for further development of bilateral relations and cooperation on regional and
international relations. It was in January 2001 when the then Mongolian President N.
Bagabandi visited India, new agreements in areas of information technology, defence
and legal matters were signed. At the same time recognizing the serious threats posed
to nation states and international peace and security by rise of international terrorism
and religious fundamentalism, the two sides in a joint declaration condemned terrorism
in all its forms, irrespective of political, philosophical, ideological, religious, ethnic,
racial or any other consideration that may be invoked to justify them. 10 Further in
2004 when the then Prime Minister and Currently President of Mongolia N. Enkhbayar
paid an official visit to India, both the countries strongly condemned the menace of 55
international terrorism and its devastating effect on democratic societies, development

and on human civilization itself.11

India-Mongolia Relations: Implications for Regional Cooperation in North East Asia

Both sides are involved in several activities including further expansion of
their defence ties as well as annual joint military exercises. In December 2005, when
Mongolias Minister for Foreign Affairs, Ts. Munkh-Orgil, paid an official visit to India
it coincided with the 50th anniversary of the establishment of diplomatic relations
between India and Mongolia, which had fallen on 24 December 2005. His visit was also
remarkable for the two sides agreeing in principle to launch a new joint project for the
establishment of a satellite-based e-network for tele-education and tele-medicine in
Mongolia to mark the 50th anniversary of the establishment of their diplomatic relations.
It was stipulated that under this project, not only Mongolian educational institutions
would be connected to Indian educational institutions through a dedicated satellite but
also one or two Mongolian hospitals would be connected to Indian medical institutions
in order to enable Mongolia to have direct access to quality education and medical
services through use of modern technology.12
As part of the celebrations on the occasion of the 50th anniversary of diplomatic

10Sharad K. Soni, "Editor's Page", Himalayan and Central Asian Studies (New Delhi), vol. 4, no.1, January-March 2001, p.2.
11See "Visit of Prime Minister of Mongolia, January 14-20, 2004", at http://www.meaindia.nic.in/pressrelease/2004/01/
16pr01.htm
12Yogeshwar Varma, "India-Mongolia Relations," Indian Studies in Mongolia (Ulaanbaatar), no.1, 2007, p.18. For details
of the project, also see ibid, p.42.
 relations, an important boulevard in Ulaanbaatar has been named as Mahatma Gandhi
Street, while a street leading to the domestic airport in New Delhi has been named
as Ulaanbaatar Street. Both sides also agreed to strengthen cooperation in the field of
agriculture by signing an MoU for the establishment of an India-Mongolia Friendship
Agropark in Darkhan Uul Aimag (province) of Mongolia for Research and Demonstration.
As per the MoU, India would provide agricultural equipments, tractors and trucks,
sprinkler irrigation system etc. to be used at this Agropark. 13 Through various other
agreements they continue to cooperate in the areas of solar electrification in rural areas
of Mongolia as well as digitalization of precious Buddhist manuscripts preserved at
Mongolian State Library. In order to reinforce cultural links between the two sides a

56 Chair of Buddhist and Sanskrit Studies in the National University of Mongolia has also
been established in accordance with the agreement concluded in April 2006 between

Government of India and the Ministry of Education, Science & Culture of Mongolia. As
such India and Mongolia have been maintaining closer ties, notwithstanding the physical

barriers.

India-Mongolia Strategic Partnership

On 29 May 2006, a website story entitled Mongolia to become Strategic Military

Location? highlighted growing Chinese concerns over setting up of a foreign military
base in Mongolia, which pointed to India as a prospective country to do that.14 The story
quoted reports by the Chinese governmental papers as saying that India is trying to
expand its military resources to establish a potential base in Mongolia.15 The issue came
into forefront ever since Delhi disclosed its plans to join a multilateral peace keeping
exercise in Mongolia called Khaan Quest 2006. 16 Reports had even indicated that

13Ibid.
14"Mongolia to become Strategic Military location?," 29 May 2006 at http://mongolia.neweurasia.net/?p=226
15Ibid.
16Khaan Quest is being organized in Mongolia since 2001 by the General Staff of the Mongolian armed Forces with the
support of the US Pacific Command, see Lt. Col. G. Nyamdorj, "Canada goes to Khan Quest", The Maple Leaf , 17 May
2006, p.15.
Indias traditional security thrust in South East Asia is now being extended to East Asia
and the Pacific and is being complemented by a Push North attempt in Central Asia.17
Obviously, Mongolia figured prominently in so-called Indias scheme of extending its
influence in East Asia, particularly if it goes beyond to include North East Asia.
Although Chinas geopolitical concerns make it imperative to voice against any
countries setting up military operations in Mongolia, Khaan Quest was a totally
different kind of affairs. Hence, it would seem unfair on the part of China to remain
suspicious of this planned peace keeping exercise. Especially when the fact remains that
it was not only India which was participating in that event but there were several others
also including Bangladesh, Fiji, Mongolia, Thailand, Tonga and the USA whose platoons
did such exercises in order to get certified to assist in UN peacekeeping missions around 57
the world. For the first five years since 2001, only Mongolian and US troops participated

but in 2006, when the Khaan Quest was held on 11-25 August at the Five Hills Training

India-Mongolia Relations: Implications for Regional Cooperation in North East Asia

Center located about 60 kms. west of Ulaanbaatar, it expanded to include several other
countries as well. China voiced its concerns that the event was to be a disguise for
rehearsing counter terrorism or even full-fledged combat operations near their border
with Mongolia. Such Chinese concerns were raised in an article published on 25 March
2006 in the Chinese government-controlled newspaper Qingnian Cankao.18.
But quite surprisingly a year after, when the Khaan Quest 2007 took place on 1-16
August, China came forward along with Russia, Malaysia and Japan to participate as
observer states in this annual military training exercise.19 What conclusion can be drawn
from this development, particularly about Chinas thinking, is difficult to predict at
least at the moment. It is yet to be seen if Chinese suspicion has really come to an end in
the light of another report appeared in the online edition of an Indian newspaper, The
Tribune saying India is quietly expanding its defence and security links with Mongolia

17"Mongolia to become Strategic Military location?", 29 May 2006 at http://mongolia.neweurasia.net/?p=226

18"See Ibid .
19See "Khaan Quest 2007: Multi-national Military Exercise Starts in Mongolia," 30 July 2007, at http://ubpost.blogspot.
com/2007/07/khan-quest-2007-multi-national-military.html. Trained by the Khaan Quest multi-national peacekeeping
exercises, the Mongolian Armed Forces personnel go to different parts of the world on peacekeeping missions,
including Iraq, Kosovo, and Sierra Leone. At present there are 100 troops serving for Operation Iraqi Freedom,
21 trainers for Development Program of the Afghan National Army, 250 peacekeeping troops for UN-mandated
peacekeeping mission in Sierra Leone, and 11 personnel deputed in four African countries.
 in a bid to monitor Chinas space and military activities in the region. 20 Whatever
analysis we have with regard to India-Mongolia defence and security links, it looks
like a cooperative partnership that the two countries are trying to develop. Evidently,
in December 2005, India and Mongolia agreed to upgrade their defence cooperation in
training and explore collaboration in other areas of mutual concerns and benefit.21 The
two countries decided to establish an India-Mongolia Joint Working Group to work out
details of cooperation in the field of defence, including holding of regular joint exercises.
These commitments lie in to fact that India and Mongolia are two ancient civilizations
whose spiritual and cultural bonds go back into history, and that Mongolia wants to
learn from Indian expertise to modernize its defence.

58 Since 2001 the defence ties between India and Mongolia have moved forward in the
fields of training, bilateral visits and joint military exercises. India has been providing

training facilities to Mongolian defence personnel in English language, peace keeping

and military operations. As regards bilateral visits, Mongolian Defence Minister paid a

visit to India in November 2003 and December 2005, while Indias Minister of State for
Defence M. M. Pallam Raju visited Mongolia in May 2006. The first joint military exercise
was held in Mongolia in October 2004, while the second one took place in December 2005
at the Counter-Insurgency Jungle Warfare School (CIJWS) at Vairangte, in Indias north
eastern state of Mizoram bordering Myanmar. 22 And the third joint military exercise
called Nomadic Elephant was to be held in the Mongolian territory after the Khaan
Quest 2007.23 It is also significant to note here that the first meeting of the India-Mongolia
Joint Working Group on Defence Cooperation was held in Ulaanbaatar in March /April
2006.24 Since then both sides have set off several initiatives including the regular dialogue
between the National Security Councils of the two countries for exchanging ideas of
bilateral and international concern.

20Rahul Bedi, "Defence ties with Mongolia Expanded: Bid to Monitor China's Military Activities", 10 August 2007, at
http://www.tribuneindia.com/2007/20070810/main5.htm
21"ndia, Mongolia to set up Joint Working Group on Defence", 7 December 2005, at http://www.india-defence.com/
reports/986
22 Ibid.
23"Khaan Quest 2007:Multi-national Military Exercise Starts in Mongolia", 30 July 2007, at http://ubpost.blogspot.
com/2007/07/khan-quest-2007-multi-national-military.html
24See Government of India, Ministry of Defence, Annual Report : 2006-2007, p.156.
 Nevertheless, India fully understands that Mongolia is a sensitive issue so far as
outside worlds strategic interest is concerned in this tiny populated (just 2.6 million)
but strategically important country in the post-cold war geo-strategic set up. And India
would not allow itself to involve in any controversy, especially at a time when it is
being praised in whole Asia both by small as well as big nations, for its efforts towards
establishment of regional peace and security. What is relevant at this point is that Indias
participation in multilateral military exercises on the Mongolian soil must be viewed in
a broad perspective of Indias new role in East Asia that could give New Delhi a boost
for its involvement in regional cooperation/integration process in which Mongolia
could also be a participant.25 Hence Indias strategic relations with Mongolia can always
be viewed in terms of mutual partnership that the two distant neighbours can have, 59
without jeopardizing the relations with the third country. Just a few days back on 6

June 2008, while delivering a speech at Peking University, Beijing, even Indias External

India-Mongolia Relations: Implications for Regional Cooperation in North East Asia

Affairs Minister Pranab Mukherjee revealed that Friendship between India and any
one strategic partner is not at the expense of relations with any third country or another
strategic partner.26 He, however, stressed that our ties are not a product of strategic
expediency, but of a long term vision.27

Implications for Regional Cooperation in North East Asia

While highlighting the importance of the East Asia region, an analyst points out
that it is not difficult to imagine the East Asia region expanding westward to include
more South Asian nations or northward to include Mongolia and Russia.28 Clearly, as he
visualizes, it is not history but economic geography and geopolitics that will define the

25For more on Mongolia's efforts for regional cooperation, see Ts. Munkh-Orgil, "Regional Integration Processes and
Mongolia", The Mongolian Journal of International Affairs, no.12, 2005, pp.3-7.
26See External Affairs Minister's Speech on "India's Foreign Policy Today" at Peking University in Beijing, China on 6
June 2008, at http://www.meaindia.nic.in
27Ibid.
28The borders of East Asia appear to have shifted, with the East Asia Summit (also referred to as ASEAN+6) coming
into scene, to envelop India on the west and Australia and New Zealand on the east, see Mohamed Ariff, "Asean
at Crossroads with Borderless Regions," 7 June 2008, at http://www.nst.com.my/Current_News/NST/Saturday/
Columns/20080607080021/Article/index_html
 East Asia region in the years to come. 29 Keeping this in mind it appears that not only
the current state of India-Mongolia relations but also the new role of India in East Asia
will have wide implications for regional cooperation in North East Asia. It is significant
to note here that Indias participation at the three East Asia Summits (December 2005 in
Kuala Lumpur, January 2007 in Cebu, Philippines and December 2007 in Singapore) is
further evidence of its growing collaborative role in the region. No doubt, India too is
pushing for a wider role at regional and sub-regional levels but it does not seem to be
on the basis of trying to dominate the region economically, rather it rests upon building
bridges of economic cooperation with all countries in Asia.30 In this context the speech
delivered at Peking University by Indias External Affairs Minister is relevant, especially

60 the portion that dealt with Indias Foreign Policy, which he outlined, in the following
words:

Our foreign policy aims to strengthen our relationships not only with all the major

powers, but with emerging economies in Asia, Latin America and Africa as well. We also
give great importance to restoring and strengthening the traditional linkages in our extended
neighbourhood. India has had historical and civilizational affinities to peoples of East and
South East Asia, Central Asia, East Africa and the Indian Ocean region for more than two
millennia. We are restoring connectivity and building economic interdependence with them again.31
[Emphasis added]

On the other side, post-Socialist Mongolia identifies itself with North East Asia
which is the only sub-region having no organisational structure of its own. But still
there is a tremendous scope in this region, which includes China, Japan, the two Koreas-
South and North, Mongolia and Russia (Far East region). The new regional identity
of Mongolia as a North East Asian country was not a sudden occurrence. It came as a
result of the debate among several Mongolian intellectuals who argued that Mongolia
would have great advantages in future if it preferred to align with the North East Asian
countries, thus having a North East Asian regional identity. They justified it by a number

29Ibid.
30Soni, "India's New Role in East Asia: Implications for Mongolia", op.cit, p.39.
31See External Affairs Minister's Speech on "India's Foreign Policy Today" at Peking University in Beijing, China on 6
June 2008, at http://www.meaindia.nic.in
of arguments, including the following:32
1. The Asia-Pacific region, of which North East Asia is an important part, will likely
to emerge as an extremely important region in the next century;
2. Mongolia will come strategically under the economic shelter of technologically
advanced countries like Japan, South Korea, and the United States;
3. Mongolia will have improved relations with not only the Russian Far East but
also Chinas North East apart from North Korea;
4. Mongolias eastern part, which is known for being a repository of most of the
countrys mineral resources, can be made readily accessible to North East Asia by road
and railways, thus giving Mongolia yet another access to the sea possibly through Tumen
river; and 61
5. Access to sea will provide Mongolia a unique opportunity to serve as a land

bridge between North East Asia and Europe.

India-Mongolia Relations: Implications for Regional Cooperation in North East Asia

But the most important convincing reason to establish close links with North East
Asia seems to have been the growing concerns for the national security-both strategic
as well as economic. Due to geographical compulsion of being landlocked the choices
available to Mongolia in international relations are rather limited. But Mongolia
now remains optimistic towards its new role in North East Asia, which can broaden
Ulaanbaatars scope for strategic partnership in order to ensure the countrys overall
security, be it strategic or economic. It is more so because North East Asia is likely to play
a significant role in the diversification and expansion of Mongolias foreign economic
activities.33 Since this region is rich in natural resources, it has a vital economic potential
to forge a close regional economic cooperation, which would be a positive factor in
establishing peace and security as well. The fact of the matter is that Japan and South
Korea have an advantage in capital and modern technology, while China has labour in
abundance, the Russian Far East and Mongolia have rich natural resources, and North
Korea is considered as having a large labour force.34 Such a strong balance of production

32Ts. Batbayar, "Mongolia's New Identity and Security Dilemma", The Mongolian Journal of International Affairs
(Ulaanbaatar), Nos. 8-9, 2002, p.6.
33See Campi, "Mongolia in Northeast Asia- The New Realities", op.cit , p.52.
34Ts. Batbayar, "Regional Economic Cooperation in North East Asia", The Mongolian Journal of International Affairs
(Ulaanbaatar), no.1, 1994, p.4.
 factors implies that the expansion of regional economic cooperation will bring mutual
benefits to all in this region, 35 and hence broaden the scope of not only regional but
a wider Asian Security also, and that is where India can also search for its options.
Mongolia is interested in making its contribution to maintaining peace in the Korean
Peninsula and in forming a mechanism of dialogues and cooperation in North East Asia.
It is also to be noted that the larger role being played by China has become a
catalyst in shaping this new order in Asia in which principal sub-regions (North
East Asia, South East Asia, South Asia, Central Asia and Oceania) have now become
increasingly interactive and enmeshed in a growing web of interdependence. 36 Such an
economic community would enable both North East and South East Asia to intermingle

62 more effectively with India, being recognized as one of the future growth poles of Asia.
In terms of economic integration North East Asia has still remained an underachiever

in the integration process. 37 It really requires more economic integration as there is a

growing need of energy resources as well. As for Mongolia, the issue of its involvement

in more and more regional integration process apart from trade and overseas investment
in its economy is a matter of concern not only for India but also for the whole Asian
community. Mongolias importance of being a landlocked country in the vital geopolitical
set up needs to be understood by all its friendly countries not to talk of the neighbours
so as to lend their support for the development initiatives of this small country.
Mongolia has some impressive assets that could contribute to regional cooperation
for economic development, particularly in North East Asia. These assets, which may also
attract India to have its benign presence in North East Asia, are as follows: abundant
mineral resources; broad opportunities to utilise solar and wind energy; a young nation
with 75% of the people being under 35; a high literacy rate of 85%; a large livestock
economy with 25.4 million head; an agricultural area totaling 130 million hectares; a
geographical bridge between Central Asia and North East Asia; a location between
two huge markets in Russia and China; a strong commitment to a market economy;

35Ibid.
36Soni, "India's New Role in East Asia: Implications for Mongolia", op.cit, p.43.
37See Executive Summary of a conference on "Mongolia and its role in shaping the North East Asian security
environment," 8-10 November 2005, at http://www.apcss.org/core/Conference/CR_ES/Mongolia%20Exec%20Summ.doc.
and a relatively stable political situation.38 In sum, due to having large reserves of coal,
hydro resources and minerals Mongolia is well placed to facilitate economic and energy
cooperation in North East Asia. But it continues to be a subject of high tariffs imposition
on its exports or transportation services. As a result, its overall role in regional trade
remains limited despite the fact that 70 per cent of Mongolias trade is with North East
Asia.39
Simultaneously Mongolia also has some shortcomings, like its disadvantageous
landlocked position, low population density, and an extreme continental climate.
However, the most acute problem Mongolia today faces in terms of poor state of its
regional cooperation is the sorry state of its transportation network. 40 This situation
must, of course, be improved by greatly expanding the transportation network, in which 63
India can also join and benefit. Besides, it would always be beneficial for Mongolia if

it explores in a right way its worth of being a natural transportation and transit bridge

India-Mongolia Relations: Implications for Regional Cooperation in North East Asia

for regional trade and energy supplies. Nevertheless, some large-scale 21st century
oriented projects in North East Asia have already been undertaken, particularly the
construction of main gas and oil pipelines as well as power lines. 41 The Tuman River
Area Development Programme (TRADP), in which five North East Asian countries
(China, Democratic Peoples Republic of Korea, Mongolia, Republic of Korea, and
the Russian Federation) are participating, is yet another example of promoting wider
regional cooperation.
The whole idea of the TRADP was to create a trans-border free trade zone by
transforming the Tumen River area into the transportation and trading hub for
North East Asia, so that it can help the regions trade to prosper besides focussing on
developing energy, tourism and investment sectors. Now that the Tumen Programme
has reached an important stage of development, the member States have rephrased it as

38Batbayar, "Regional Economic Cooperation in North East Asia", op.cit, p.8.

39See Executive Summary of a conference on "Mongolia and its role in shaping the North East Asian security
environment," 8-10 November 2005, op.cit.
40Access to Mongolia is possible only through Russia and China, and so goods from other North East Asian countries are
carried to either Chinese or Russian ports and then transported by rail some 2,000 kilometers to Mongolia. See ibid.
41Sharad K Soni, "Mongolia's Security Thinking and Outside World: A Reappraisal", Bimonthly Journal on Mongolian &
Tibetan Current Situation (Taipei, Taiwan), vol.15, no.6, November 2006, p.38.
 the Greater Tumen Initiative (GTI) in order to serve the common goals in a better way.
For this purpose they have also set a Strategic Action Plan (2006-2015), which aims at
reaffirming the common vision of the Tumen River Area Development Programme. 42
Another historic development which took place in 2006 with regard to international
trade to North East Asia has been the creation of the Zamiin Uud Free Economic Zone, a
new international free trade zone which has strengthened the position of Mongolia and
North East Asia in the global economy.43

Conclusion
64
Considering the state of Indias cooperation with its extended neighbourhood

in East Asia along with ever growing ties with Mongolia it appears that the foremost
implication of such initiatives would be to contribute to the idea of creating an Asian

Economic Community (AEC). In terms of regional cooperation, such an economic

community would enable both North East and South East Asia to intermingle more
effectively with India. Since the emergence of a growing number of regional groupings in
recent years has been influenced by the rising tide of economic regionalism, efforts must
be made to explore the collective ability of Asian countries to build mutual economic
stakes in order to ensure long-term security and stability in Asia. Indias engagement in
East Asia would certainly give much impetus to both New Delhi and Ulaanbaatar to try
to engage themselves in regional cooperation/integration process, particularly in North
East Asia. For example, ASEAN plus 3 countries (Japan, China and South Korea) can
serve as forward posts for Indias trade and investment initiatives towards North East
Asia. 44 It would certainly bring India much closer to Mongolia so far as economic and

42Supported by the United Nations Development Programme (UNDP), the Greater Tumen Initiative (GTI) is an
intergovernmental cooperation mechanism in North East Asia. It has not only been a unique platform for economic
cooperation but also contributing to peace, stability and sustainable development in the region.
See"Greater Tuman Initiative: Economic Cooperation in North East Asia" at http://www.undp.org.cn/downloads/
gtiRegional /brochure1.pdf ; and "Greater Tuman Initiative: Strategic Action Plan for the Period 2006-2015," at http://
www.undp.org.cn/downloads/gtiRegional /brochure2.pdf
43"Mongolia to create New International Free Trade Zone," at http://www.accessmylibrary.com/coms2/
summary_0286-15046239_ITM
44Soni, "India's New Role in East Asia: Implications for Mongolia", op.cit, pp.43-44.
trade ties are concerned. Geographical apartness of the two countries would, therefore,
no longer be viewed as a barrier in the smooth conduct of their bilateral economic
and trade relations, besides engagements in various regional cooperative initiatives to
achieve the ultimate goal of the Asian unity. Although the actual benefit of the three
East Asia Summits is yet to be realized, one thing clearly visible is that India has already
made progress towards achieving an eventual goal of the Asian unity by moving to the
East through various bilateral and sub-regional cooperation initiatives and agreements.
This testifies to the fact that India has made a shift from Look East to Move East in
its foreign and economic policy.45 But what remains to be seen in the light of Mongolias
North East Asian identity is that whether India-Mongolia bonding would indeed benefit
New Delhi to be a participant in various regional cooperation initiatives in North East 65
Asia.

India-Mongolia Relations: Implications for Regional Cooperation in North East Asia

45Ibid, p.44.