India and Azerbaijan Reset Ties After Diplomatic Strain

Syllabus: GS2/ International Relations

Context

• A year after tensions following Operation Sindoor, India and Azerbaijan have initiated efforts to normalise bilateral relations, with the 6th round of Foreign Office Consultations in Baku, marking the first such engagement since 2022.

Background

• Operation Sindoor Fallout: Azerbaijan, along with Turkey, expressed support for Pakistan following the military operation of India, citing the “Three Brothers” bloc alliance. 
• Geopolitical Alignments: Azerbaijan shares close strategic ties with Pakistan, as the latter supports Azerbaijan  in the Nagorno-Karabakh conflict.
  • India, on the other hand, has strengthened ties with Armenia, including defence cooperation.
  • Azerbaijan accused India of supporting Armenia militarily.

Recent Diplomatic Engagement

• Both sides conducted a comprehensive review of the entire spectrum of bilateral relations.
  • It covered trade, energy cooperation, technology, pharmaceuticals, tourism, cultural exchanges, people-to-people contacts and cooperation in addressing cross-border terrorism.
  • Significance: The inclusion of cross-border terrorism indicates a shift in Azerbaijan’s earlier stance.
• Azerbaijan has resumed crude oil exports to India, and oil constitutes nearly 98 percent of its exports to India.

India-Azerbaijan Relations

• Diplomatic Relations: India recognised Azerbaijan as an independent country in December 1991, soon after it declared independence from the Soviet Union.
  • Diplomatic relations were formally established in February 1992.
• Economic Relations: Bilateral trade between both the nations increased significantly from around US$ 50 million in 2005 to a peak of US$ 1.882 billion in 2022, reflecting strong economic engagement.
  • The trade declined in subsequent years, falling to US$ 401 million in 2025, mainly due to a reduction in crude oil imports by India.
  • India exports diversified goods such as pharmaceuticals, rice, machinery, electronics, and construction materials to Azerbaijan.
• Energy cooperation: ONGC Videsh maintains investments in oil and gas fields as well as pipeline projects in Azerbaijan. The company has acquired stakes in the Azeri-Chirag-Gunashli oil field and the Baku-Tbilisi-Ceyhan pipeline.
  • It contributes to India’s efforts to diversify its energy sources and enhances its engagement in the strategically important Caspian region.
• Cultural Relations: Historical ties are highlighted by the 18th-century “Ateshgah” fire temple in Baku, which holds inscriptions in Devanagiri and Gurmukhi, reflecting historical trade links.
• Humanitarian cooperation: Azerbaijan facilitated the evacuation of more than 200 Indian nationals during the U.S.-Israel strikes on Iran.
• The Indian community in Azerbaijan comprises nearly 1,000 individuals engaged in diverse professional sectors.

Way Ahead

• India’s engagement with Azerbaijan reflects a pragmatic and multi-aligned foreign policy approach aimed at balancing diverse regional interests.
• The normalisation of ties highlights the importance of dialogue and mutual accommodation in resolving diplomatic tensions.
• Both countries are expected to prioritise long-term strategic and economic interests over past disagreements to build a stable and forward-looking partnership.

Source: TH