India-Azerbaijan Seek Diplomatic Reset

Syllabus: GS2/ International Relations

Context

• The External Affairs Minister S. Jaishankar’s visit to Azerbaijan marks an effort to restore India–Azerbaijan relations following differences over Operation Sindoor.

Background

• Operation Sindoor Fallout: Azerbaijan, along with Turkey, expressed support for Pakistan, following the military operation of India, citing the “Three Brothers” bloc alliance. 
• Kashmir issue: Azerbaijan has consistently advocated for the resolution of the Jammu and Kashmir conflict according to international law and relevant UN Security Council resolutions.
• Geopolitical Alignments: Azerbaijan shares close strategic ties with Pakistan, as the latter supports Azerbaijan  in the Nagorno-Karabakh conflict.
  • India, in contrast, has deepened its ties with Armenia notably in the area of defence cooperation.
  • Azerbaijan accused India of supporting Armenia militarily.

Recent Diplomatic Engagement

• Trade and investment: Both sides identified opportunities to expand trade and energy cooperation, recognising the potential for greater economic engagement.
• Energy cooperation: The discussions focused on strengthening cooperation in the oil and energy sectors  along with exploring additional areas of economic partnership.
• Connectivity: Both the countries agreed to coordinate more closely on the International North–South Transport Corridor (INSTC).
• Capacity building: India proposed increasing the participation of Azerbaijani professionals in the Indian Technical and Economic Cooperation (ITEC) programme.

Brief on 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 nations increased 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 India’s crude oil imports.
  • 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.

Significance of Azerbaijan for India

• Location: Azerbaijan is located at the crossroads of Europe, Russia, and Central Asia and the Caspian region. 
• Connectivity: It is important for the International North-South Transport Corridor, which opens up an alternate path for India to reach Russia, Central Asia and the European market.
• Energy Security: Azerbaijan is a major energy producer in the Caspian region and has the potential to broaden India’s energy partnerships.

Challenges in Bilateral Relations

• The disagreements over the Kashmir issue continue to remain a major source of contention.
• Azerbaijan’s close strategic relationship with Pakistan poses challenges to trust-building.

Way Ahead

• India’s engagement with Azerbaijan shows a pragmatic and multi-aligned foreign policy approach aimed at balancing diverse regional interests.
• The normalisation of relations underscores 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, IE