India-Mongolia Strategic Partnership | 18 Oct 2025

Source: IE

Why in News?

The President of Mongolia undertook a State Visit to India, commemorating the 70^th anniversary of diplomatic relations and the 10th anniversary of the Strategic Partnership between the two nations.

What are the Key Outcomes of the President of Mongolia Visit to India? 

• Defence & Security Cooperation: India launched a capacity-building programme for Mongolia’s border security forces and strengthened defence ties via training programmes and a Defence Attache at the Indian Embassy. 
• Energy Security: The visit confirmed the USD 1.7 billion Oil Refinery Project in Mongolia, funded by an Indian Line of Credit, marking India’s largest global development partnership and pivotal for Mongolia’s energy security. 
• Economic Partnership: Cooperation in critical minerals, rare earths elements, and coking coal was highlighted as a priority, with India considering logistical routes through Vladivostok (Russia) and Tianjin port (China) for importing Mongolian coking coal. 
• Cultural Connectivity: India will send the holy relics of Lord Buddha's disciples, Sariputra and Maudgalyayana, to Mongolia, and an MoU was signed between the Ladakh Autonomous Hill Development Council and Arkhangai Province to boost cultural ties. 
  • India will also send a Sanskrit teacher to the Gandan Monastery (Mongolia) and launch a project to digitize one million ancient Mongolian manuscripts. 
• Development Cooperation & Skill Development: Both sides signed pacts on cultural exchange, immigration cooperation, disaster management, and Bogd Khan Palace (Mongolia) renovation, while India’s developmental role was highlighted via the Atal Bihari Vajpayee Centre of Excellence for IT and the India-Mongolia Friendship School.

What is the Status of India-Mongolia Relations? 

• Historical Relations: Historical conjectures suggest migration from the Kangra kingdom 4,300 years ago under Mangaldev, though evidence is lacking.  
  • During the Hunnu State (3rd century BC in Mongolia) and the Great Mongol Empire, Buddhist monks and Indian traders visited Mongolia, and in 552 BC, Lama Narendrayash from Udayana (Northern India) visited Nirun state (Mongolia). 
• Political Relations: Diplomatic relations between India and Mongolia were established in 1955, making India the first country outside the Socialist bloc to do so. India also supported Mongolia’s membership in the United Nations (UN) and Non-Aligned Movement (NAM).  
• Trade Relations: In 2024, India-Mongolia bilateral trade stood at USD 111 million.  India’s exports to Mongolia include medicines, mining machinery, and auto parts, while imports consist mainly of raw cashmere wool. 
• Defence Cooperation: The joint India-Mongolia exercise Nomadic Elephant is held annually, and India also participates in the week-long Khaan Quest training exercise hosted by Mongolia. 
• Humanitarian Assistances: India provided humanitarian assistance worth USD 20,000 (beds, bedrolls, toys) to children of herders in Sukhbaatar Aimag affected by Zud (harsh winter), and USD 50,000 to flood-affected provinces Bayan Ulgii, Arhangai, and Huvsgul. 
• Cultural Relations: The India-Mongolia Cultural Agreement of 1961 governs the Cultural Exchange Programme (CEP), facilitating educational cooperation through scholarships, expert exchanges, and conference participation.  
• A pan-Mongolia Indian dance competition, Melody of Ganga, is being organized for school children.

What Factors are Impeding a Stronger India–Mongolia Partnership? 

• Geographical & Logistical Chokepoint: Mongolia's landlocked status creates a fundamental logistical barrier for bilateral trade and investment.  
  • All movement of goods, including crucial mineral exports for India and Line of Credit (LoC) imports for Mongolia's oil refinery, must be routed through either Russia or China, driving up costs and reducing India's trade competitiveness. 
• Disparity in Economic Scale and Trade Volume: Despite the Strategic Partnership since 2015, actual bilateral trade remains minuscule (around USD 110 million in 2024), especially compared with Mongolia’s economic dependence on China. 
• Geopolitical Vulnerability to Neighbors: Mongolia’s "Third Neighbour" policy relies on India as a democratic and spiritual partner to balance China and Russia.  
  • However, any aggressive move by India to deepen this relationship could be perceived as geopolitical provocation by its powerful neighbors, complicating cooperation and potentially creating instability for Mongolia. 
• Project Implementation and Political Volatility: The timeline and successful execution of India's flagship projects, particularly the USD 1.7 billion oil refinery (expected 2028), are susceptible to delays, cost overruns, and local political instability in Mongolia.  
  • Slow implementation or policy changes can invite skepticism and criticism, preventing the deepening of trust needed to translate MoUs into lasting strategic gains. 

What Measures can India Adopt to Deepen its Ties with Mongolia? 

• Critical Minerals Partnership: Invest in coal gasification projects and joint ventures to extract Mongolia’s rare earth elements (e.g., copper, uranium), reducing India’s dependency on China for critical minerals. 
• Strategic Connectivity: Launch direct flights (e.g., Delhi-Ulaanbaatar) and collaborate on digital infrastructure (e.g., India Stack for e-governance) to strengthen Mongolia’s “Third Neighbor” policy. 
• Defense & Security Cooperation: Expand exercises on peacekeeping, counterterrorism, and cold‑desert warfare, leveraging India’s high‑altitude expertise. 
• Promote Cultural Links: Fund restoration of Buddhist heritage sites (e.g., Gandan Monastery) and promote scholarly exchanges through Nalanda University, while organizing joint cultural events and cinema co-productions to leverage Mongolia’s interest in Indian media. 
• Agriculture & Food Security: Share Indian expertise in cooperative dairy models (e.g., Amul) and modernize meat export infrastructure, while providing drought-resistant crop technologies to combat desertification.

Conclusion 

The President of Mongolia’s state visit to India reinforced a decade-long strategic partnership, advancing defence, energy, economic, cultural, and skill development cooperation. With landmark initiatives like the USD 1.7 billion Oil Refinery Project, capacity-building for border security, and cultural exchanges, the visit strengthened bilateral trust, regional engagement, and people-to-people ties.