India and Austria at a path to sustainable future

India and Austria, two nations with rich histories and diverse cultures, are marking a significant milestone in 2024, celebrating 75 years of diplomatic relations. This momentous occasion has been further highlighted by the official visit of the Hon'ble Prime Minister of India, Shri Narendra Modi, to Austria.

The visit, which took place from July 9 to 10th, 2024, was the first by an Indian Prime Minister to Austria in over four decades. During his visit, Prime Minister Modi met with H.E. Alexander Van der Bellen, President of Austria, and held bilateral discussions with Chancellor Karl Nehammer. These discussions have laid the groundwork for an enhanced partnership between the two nations, focusing on shared values and strategic co-operation.

Historical Context and Political Cooperation

The diplomatic relations between India and Austria date back to 1949, a time when both nations were emerging from the shadows of historical upheavals. The connection has changed over the years, taking on new forms in areas such as political, economic, cultural, and technical interactions. Prime Minister Modi's recent visit shows a fresh dedication to fortifying these connections.

Co-operation on security and politics was a major topic of conversation amongst the leaders. As the cornerstones of their collaboration, both India and Austria recognized the significance of democracy, freedom, world peace, and security. They highlighted how closer connections between the EU and India may benefit the world at large. The strategic significance of these projects was underscored by the reaffirmation of support for the ongoing trade and investment negotiations between the EU and India as well as the early implementation of the EU-India Connectivity Partnership.

Sustainable Economic Partnership

The emphasis on a sustainable economic and technological relationship is a pillar of the strengthened India-Austria partnership. Both nations have set high goals for reaching net-zero emissions and are dedicated to tackling the global challenge of climate change. By 2050, the EU hopes to be carbon neutral, Austria by 2040, and India by 2070. Several avenues for cooperation in clean mobility, water management, green hydrogen, renewable energy, and other environmental technologies are made possible by this collaborative effort.

The inaugural high-level bilateral Business Forum, which took place amid Prime Minister Modi's visit, is evidence of both parties' shared desire to deepen their economic ties. Business delegates from both countries are invited to investigate fresh, innovative alliances in a range of industries. The forum emphasised the need for more creative business, industrial, and R&D cooperation models to foster stronger collaboration in the development and commercialization of technology.

One of the key areas of focus is the development of green technologies. Both nations are actively exploring ways to harness renewable energy sources, reduce carbon footprints, and promote sustainable practices. This includes joint ventures in solar and wind energy projects, as well as the development of energy-efficient technologies. The collaboration extends to sectors like clean transportation, where initiatives are being taken to promote electric vehicles and sustainable mobility solutions.

Technological and Digital Advancements

In the era of digital transformation, technological advancements play a crucial role in economic development. India and Austria recognize the growing role of digital technologies in industrial processes and the sustainable economy. Both nations are poised to benefit from enhanced cooperation in digital technologies, fostering innovation and boosting productivity.

Digital technology is revolutionizing the way businesses operate, and both India and Austria are keen to leverage this transformation to drive economic growth. The focus is on areas such as artificial intelligence, machine learning, big data analytics, and the Internet of Things (IoT). These technologies have the potential to enhance efficiency, reduce costs, and create new business opportunities.

Additionally, cybersecurity is a crucial area of cooperation for both countries. As our reliance on digital infrastructure grows, it is more important than ever to protect data and systems. To defend against cyber-attacks, collaborative efforts are being made to create strong cybersecurity frameworks and exchange best practices.

India-Austria bilateral trade

India's trade relationship with Austria demonstrates a significant growth in total merchandise trade, rising from USD 1.4 billion in 2011-12 to USD 2 billion in 2023-24, marking a growth of 45%. Regarding exports, India's export value surged from USD 342 million in 2011-12 to USD 1.1 billion in 2023-24, registering a growth of more than 200 percent. Furthermore, India's import value experienced a 15 percent decline from USD 1 billion in 2011-12 to USD 922 million in 2023-24.

India’s major export products to Austria are electrical machinery and equipment, vehicles other than railway or tramway rolling stock, nuclear reactors, organic chemicals and footwear, among others. While the import basket consists of nuclear reactors, electrical machinery and equipment, optical and photographic parts and accessories thereof, man-made staple fibres and organic chemicals, among others. India has a trade surplus of USD 214 million with Austria in 2023-24, improving from a trade deficit of USD 739 million in 2011-12.

India and Austria merchandise trade (2011-12 to 2023-2024)

Skill Development and Mobility

The focus on skill development and mobility for high-tech sectors is another critical area of cooperation. The bilateral Migration and Mobility Agreement aims to facilitate exchanges in these sectors, ensuring that both nations can leverage their human capital effectively. This agreement also addresses the issue of irregular migration, promoting legal and orderly movement of people.

India and Austria are investing in education and training programs to equip their workforce with the skills needed for the future. This includes vocational training, apprenticeships, and higher education opportunities in fields such as engineering, technology, and healthcare. By enhancing the skill sets of their citizens, both nations aim to create a more competitive and innovative workforce.

The two nations' ability to exchange professionals and specialists is further facilitated by the mobility agreement. This promotes creativity, facilitates the exchange of knowledge, and fortifies commercial relationships. Additionally, it gives researchers and students the chance to work together on projects and acquire priceless international experience.

Cultural and People-to-People Ties

Cultural exchanges have always been a vital aspect of India-Austria relations. A greater understanding between the peoples of both countries has been developed by their shared interest in yoga, Ayurveda, and other cultural practices. Cross-cultural ties have been greatly aided by Indian cultural leaders and Austrian Indologists. There are initiatives underway to promote cross-cultural interactions in a number of areas, including dance, music, opera, theatre, film, literature, and sports.

Tourism is another significant area of cooperation, with both nations recognizing its potential to drive economic growth. Initiatives are being taken to increase visitor flows in all directions, including improving direct flight connectivity and extending the duration of stay for tourists. Such efforts will not only boost the tourism industry but also strengthen the cultural bonds between India and Austria.

The exchange of cultural artifacts, exhibitions, and performances is being actively promoted. This not only showcases the rich cultural heritage of both nations but also creates opportunities for artists and performers to collaborate. Festivals and cultural events are being organized to celebrate the diverse traditions and customs of India and Austria, fostering mutual appreciation and respect.

Multilateral Cooperation and Global Impact

Both India and Austria are committed to the principles of multilateralism and the United Nations Charter. The leaders have agreed to work together to safeguard and promote these principles through regular bilateral consultations and coordination at multilateral forums. They also expressed support for comprehensive reforms of the United Nations, including its Security Council, to better reflect the realities of the contemporary world.

India's invitation to Austria to become a member of the International Solar Alliance, which just welcomed its 100th member, highlights how critical international collaboration is in combating climate change. Austria's involvement would increase the alliance's worldwide impact as it works to promote sustainable development and solar energy.

The collaboration extends to other international platforms as well, where both nations are working together to address global challenges such as climate change, terrorism, and economic inequality. By pooling their resources and expertise, India and Austria are contributing to a more stable and prosperous world.

Conclusions

The enhanced partnership between India and Austria marks a new chapter in the bilateral relations between the two nations Deeper cooperation in several areas, such as political and security cooperation, sustainable economic partnership, technical developments, skill development, cultural exchanges, and multilateral cooperation, has been made possible by Prime Minister Modi's visit to Austria.

The dedication to common ideals and strategic goals will open the door for a more secure, prosperous, and sustainable future as the two countries commemorate 75 years of diplomatic relations. In addition to marking significant turning points in the two countries' relationship, the agreements and actions addressed during this visit will also help create a more peaceful and connected global community.

The evolving India-Austria partnership is a testament to the power of diplomacy and cooperation in addressing global challenges and fostering mutual growth. As the two nations embark on this enhanced partnership, the future holds great promise for both, driven by shared values, mutual respect, and a commitment to sustainable development.