India-Azerbaijan Relations

India-Azerbaijan Relations

Why in News? 

Azerbaijan has claimed that India blocked its request for full membership recognition in the Shanghai Cooperation Organisation (SCO). The country has charged India with breaching the principles of “multilateral diplomacy” by hindering Azerbaijan’s aspirations.

Background of Azerbaijan–India Ties

• India and Azerbaijan share civilizational contacts that date back centuries when traders from the Indian subcontinent used the Silk Road routes passing through the Caspian region to reach Europe. 

• Merchants carried spices, textiles, and precious stones, while in return they acquired carpets, silk, and metal goods from the Caucasus region. These exchanges created commercial and cultural connections between two countries.

• Azerbaijan was part of the Soviet Union until 1991, and during that time India’s direct interaction with the region was limited, as foreign policy relations were managed through Moscow. 
• Indian cinema, especially Hindi films, was popular among Azerbaijani audiences in the 1960s and 1970s. Many students from Azerbaijan visited India for higher studies in medicine and engineering under Soviet educational programs. 
• Azerbaijan became independent in August 1991, and India was among the countries that quickly recognized the new republic. Soon after, both sides moved toward building formal diplomatic links.
• India and Azerbaijan have supported each other on several international platforms.

Azerbaijan–India Relations in Different Areas

• Diplomatic Relations: On 28 February 1992, India and Azerbaijan officially established diplomatic relations following Baku’s independence.

• India opened its embassy in Baku in 1999, but Azerbaijan set up its diplomatic mission later in New Delhi in 2004 that marked a new stage in their engagement.

• Both sides have engaged through high-level visits, including the visit of the Indian Minister of State for External Affairs in 2018 and Azerbaijani leaders’ participation in multilateral events in India. 

• They continue to cooperate in international platforms such as the United Nations and the Non-Aligned Movement (NAM), which Azerbaijan chaired in 2019–2022. 

• Trade Relations: Trade between India and Azerbaijan has expanded steadily, with energy imports playing a central role. According to official figures, bilateral trade crossed USD 1435 billion (2023), making India one of the important trade partners for Azerbaijan in Asia. 

• India mainly imports crude oil and petrochemical products from Azerbaijan, while exports include machinery, pharmaceuticals, and textiles. 

• Business delegations have been exchanged under forums such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and Azerbaijan’s Chamber of Commerce, which has helped increase awareness of opportunities in sectors like agriculture and IT services. 

• Both governments have highlighted the potential of the International North–South Transport Corridor (INSTC) as a means to expand trade routes connecting India with Europe via Azerbaijan.

• • 1. India-Azerbaijan Intergovernmental Commission (IGC) officer level meetings are held accordingly to review and enhance bilateral investment.

• Energy Cooperation: Energy remains the strongest pillar of the partnership. Azerbaijan, being a significant oil and gas producer in the Caspian Sea region, supplies a large share of India’s crude oil imports from this region. 

• In 2005, India’s ONGC Videsh Limited (OVL) invested in the Azeri–Chirag–Gunashli oil fields, showing New Delhi’s strategic interest in Azerbaijan’s hydrocarbon resources. 

• Indian companies have also expressed interest in Liquefied Natural Gas (LNG) and petrochemical projects in Azerbaijan. 

• • 1. SOCAR MoUs between two nations strengthen bilateral engagement in energy security, clean technology, and innovation. 

• Digital Cooperation: Initiatives such as training programs under India’s Indian Technical and Economic Cooperation (ITEC) scheme have allowed Azerbaijani professionals to learn advanced IT skills in India. 

• Discussions have also taken place on using India’s digital platforms for e-governance and cybersecurity frameworks. 

• Cultural and Educational Exchanges: Indian films, music, yoga, and Ayurveda are very popular in Azerbaijan. The Indian Cultural Centre in Baku regularly organizes events such as yoga day celebrations, film screenings, and exhibitions to deepen people-to-people connections. 

• Many Azerbaijani students pursue medical and engineering courses in Indian universities due to affordable costs. 

• Scholarships under ICCR (Indian Council for Cultural Relations) have further encouraged academic exchanges.

• • 1. Hindi teaching centers and university collaborations have been organised for many years.
    2. Approximately 1,481 Indian Diaspora including professionals, businessmen, workers and students are living there.

• Bilateral Agreements: Notable agreements include 

• 1. Economic and Technical Cooperation (1998)
  2. Intergovernmental Commission (2007)
  3. Air Communication (2013)
  4. MLATs (Civil/Criminal) (2013)
  5. Avoidance of Double Taxation (2017)
  6. SOCAR-ONGC/MRPL MoU in Energy (2025)

Strategic Importance of Azerbaijan–India Relations

• India: India is one of the largest importers of crude oil in the world, and Azerbaijan offers an important source of hydrocarbons. At the same time, Azerbaijan’s location on the International North–South Transport Corridor (INSTC) provides India with a gateway to Europe, Russia, and Central Asia. The relationship gives India an opportunity to expand its influence in the Caucasus region, which is an area of increasing global competition involving Turkey, Iran, and Western powers. India sees this relationship as a way to balance its regional partnerships, secure long-term energy contracts, and keep its presence strong in a strategically sensitive geography that links Asia and Europe.

• Azerbaijan: Azerbaijan sees its relationship with India as a way to diversify its global partnerships, attract new markets for its energy exports, and connect more deeply with Asia’s growing economies. India provides Azerbaijan with a large and reliable market for oil and gas exports, which form the backbone of its economy. By strengthening ties with India, Azerbaijan increases its importance in regional connectivity projects and enhances its economic profile. For Azerbaijan, the partnership also adds weight in multilateral organizations, as India’s support on issues of sovereignty and development contributes to Baku’s diplomatic agenda.

Challenges in Azerbaijan–India Relations

• Regional Geopolitical Challenge: The most persistent challenge in the relationship is the Nagorno-Karabakh conflict between Azerbaijan and Armenia, which has created instability across the South Caucasus region for decades. India supports peaceful solutions through dialogue, yet the conflict directly affects regional security and threatens connectivity projects such as the INSTC that passes through Azerbaijan. 

• Azerbaijan’s Support for Pakistan: Another sensitive issue arises from Azerbaijan’s public alignment with Pakistan on the Kashmir dispute, which remains a major concern for India. During 2019, after India revoked Article 370 in Jammu and Kashmir, Azerbaijan’s expressions of support for Pakistan’s position and also support during Operation Sindoor (2025), created negative perceptions among the Indian public.

• Direct Connectivity Issues: The absence of direct flight connectivity between India and Azerbaijan continues to be a barrier in expanding tourism, business exchanges, and educational ties. Currently, most travelers rely on connecting flights through the Middle East or other hubs, which increases both cost and travel time. This challenge restricts the potential for growth in people-to-people contact and reduces the attractiveness of Azerbaijan.

• Lack of High-Level Engagement: The relationship suffers from limited high-level visits between leaders. Only a few ministerial-level visits have taken place since 1992, and no Indian Prime Minister has visited Azerbaijan so far. Similarly, Azerbaijani Presidents have not made frequent bilateral visits to New Delhi. This creates gaps in political understanding and slows down decision-making on key projects. 

Way Forward

• Strengthen Political Engagement: India and Azerbaijan should prioritize regular high-level visits to create stronger political trust and faster decision-making. Frequent dialogues at the level of presidents and prime ministers will help in resolving sensitive issues, improving coordination in multilateral forums.

• Expand Trade Partnerships: Both countries should move beyond hydrocarbons and invest in renewable energy, petrochemicals, and digital trade platforms. Azerbaijan can attract Indian investment in infrastructure, while Indian companies can diversify exports in pharmaceuticals, machinery, and IT services. 
• Improve Transport Links: The success of the International North–South Transport Corridor (INSTC) is critical for long-term cooperation. Delays since its launch in 2000 have reduced its effectiveness, but both sides can fast-track customs modernization, infrastructure upgrades, and digital tracking systems.
• Enhance Educational Cooperation: Both countries can strengthen this through student scholarships, language programs, and joint cultural festivals. Stronger educational exchanges will also create professionals who can act as bridges in trade, diplomacy, and technology cooperation.