PM’s visit to Austria

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Context:

• The Prime Minister of India visited Austria making it the first visit by an Indian Prime Minister to Austria in 41 years.

Key takeaways from the visit

Political and Security Cooperation:

• Democratic Partnership: Importance of democratic nations like India and Austria collaborating for global and regional peace and prosperity was emphasised.
• Indo-Pacific Stability: Both leaders committed to a free, open, and rules-based Indo-Pacific, respecting international law, UNCLOS, sovereignty, territorial integrity, and freedom of navigation.
• Regional Assessments: Discussions included recent developments in Europe and West Asia/Middle East, emphasising peace efforts and adherence to international law and the UN Charter.
• Ukraine Conflict: Support for peaceful resolution under international law and the UN Charter, stressing inclusive engagement of all stakeholders.
• Counterterrorism: Condemned terrorism in all forms, calling for no safe havens for terrorists and joint action through international frameworks like FATF and UN designations.

Sustainable Economic Partnership:

• Strategic Economic Ties: Leaders aimed for stronger economic and technology partnerships, highlighted by a high-level bilateral Business Forum and encouragement for sector-specific collaborations.
• Technological Innovation: Emphasis on research, scientific partnerships, and technology commercialization to drive bilateral cooperation, including in renewable energy and industry 4.0 sectors.
• Climate Commitments: Commitment to UNFCCC goals, with Austria aiming for climate neutrality by 2040 and India by 2070, supporting collaboration in green hydrogen and environmental technologies.

Skills for a Shared Future:

• Skill Development: Acknowledgment of the importance of skill development and mobility, operationalizing the Migration and Mobility Agreement to facilitate exchanges in high-tech sectors.
• Academic Partnerships: Encouragement for future-oriented collaborations between academic institutions in areas like science, technology, and engineering.

People-to-People Ties:

• Cultural Exchanges: Recognition of cultural ties, promotion of bilateral exchanges in yoga, Ayurveda, music, dance, theatre, and sports, supported by the recent MOU on Cultural Cooperation.
• Tourism: Acknowledgment of tourism’s role in economic growth and mutual understanding, with efforts to enhance connectivity and visitor experiences.

Multilateral Cooperation:

• Commitment to Multilateralism: Reaffirmation of support for the United Nations principles and commitment to work together for its comprehensive reforms, including support for each other’s UNSC candidatures.
• International Solar Alliance: Invitation extended to Austria for membership in the International Solar Alliance, highlighting India’s leadership in sustainable energy initiatives.

Relations between India and Austria

Historical Context:

• Diplomatic relations between India and Austria were established in 1949.
• In 1953 India supported Austria during negotiations with the Soviet Union for the State Treaty, which led to Austria's independence in 1955.
• The bilateral relationship celebrated its 70th anniversary in 2019.
• The first Prime Ministerial visit from India to Austria was by Jawaharlal Nehru in 1955. Subsequent visits included Indira Gandhi in 1971, followed by Austrian Chancellor Bruno Kreisky's visit to India in 1980.

Ministerial Level Engagements and Visits:

• In March 2022, the Austrian Foreign Minister, highlighting economic cooperation and COVID-19 collaboration. Foreign Ministers met in Munich in 2021 and again in New York in September 2022, discussing bilateral and global issues.

Institutional Mechanism for engagement:

• Foreign Office Consultations (FOC): The 7th round of FOC was held in New Delhi in May 2023, covering bilateral cooperation in trade, consular matters, and cultural exchanges. Both sides discussed regional issues like UNSC reforms and the situation in Ukraine.

Bilateral Agreements:

• Numerous agreements and MoUs exist, including those on air services, double taxation avoidance, science and technology cooperation, and cultural exchanges. Recent agreements include a Comprehensive Migration and Mobility Partnership signed in Stockholm in May 2023.

Economic Cooperation:

• The Indo-Austrian Joint Economic Commission (JEC) established in 1983 (15th session was held in New Delhi in 2017) and provides a forum for bilateral interaction between the governmental Ministries and Chambers of Commerce and Industry.
• More than 200 collaborations, including 100 technical collaborations and 60 joint ventures between Indian and Austrian firms especially in the fields of steel, manufacturing technology, railway and transport, equipment and metallurgy.

Indo-Austria Bilateral Trade:

• The bilateral trade is balanced. According to the Statistik Austria, for 2021, Indian exports to Austria were USD 1.29 billion and imports were USD1.18 billion. The total bilateral trade for this period was USD 2.47 billion.
• Indian key exports to Austria: Electronic Goods, Apparels, Textile, Footwear, Rubber articles, Vehicles & Railways parts, Electrical machinery and Mechanical appliances.
• India’s key imports from Austria: Machinery, Mechanical appliances, Railway parts, Iron and Steel etc.

Space

• Austria’s first two satellites TUGSAT-1/BRITE and UniBRITE were launched by India’s PSLV–C20 from Satish Dhawan Space Centre, Sriharikota on 25 February 2013.

Cultural and People-to-People Exchanges:

• Ayurveda, the Indian traditional system of medicine and Yoga has been widely acknowledged and practised in Austria.
• An MoU on Cultural Cooperation was signed in February 2016 and was renewed in 2023.

Historical cultural exchanges

Indian community

• There are an estimated over 31,000 Indians (majority from Kerala and Punjab) living in Austria. The Indian diaspora mainly consists of professionals working primarily in the Health Care sector and in the multilateral UN bodies, businessmen and self-employed self-employed individuals. They are roughly evenly divided between NRIs and PIOs. There are over 500 Indian students pursuing their higher education in Austria and the number is set to rise.

Key areas of cooperation and potential for India Austria relations

Economic Cooperation:

• Trade and Investment:
  • There is a need to expand trade beyond traditional sectors like machinery and steel to include high-growth areas such as digital technology, renewable energy, pharmaceuticals, and biotechnology.
• Joint Ventures and Technology Collaboration:
  • There is a need to further joint ventures and technology collaborations in emerging sectors like smart cities, clean energy solutions, artificial intelligence, and advanced manufacturing and establish technology parks, innovation hubs, and joint research projects to leverage India's expertise in IT services and Austria's advanced engineering capabilities.

Strategic Partnerships:

• Security and Defense:
  • Joint military exercises, defense equipment procurement, and sharing of best practices in defense industry regulation can be done.
• Climate Change and Sustainable Development:
  • Joint research on climate-resilient agriculture, exchange of best practices in water management, and implementation of green infrastructure projects can be carried out to that direction.

Education and Research Collaboration:

• Increase funding for joint research initiatives in STEM fields, promote faculty exchanges, and establish twinning programs between educational institutions and accelerate innovation, technology transfer, and commercialization of research outcomes.

Cultural and Tourism Promotion:

• Cultural Exchanges:
  • Increase cultural exchange programs, artist residencies, and joint cultural heritage projects.
• Tourism Promotion:
  • Develop tourism packages that highlight historical ties, cultural diversity, and adventure tourism opportunities in both countries.

Diaspora Engagement and People-to-People Contacts:

• Diaspora Networks:
  • Encourage collaboration among Indian professionals, entrepreneurs, and diaspora organisations to promote bilateral trade and investment.
• Visa and Travel Facilitation:
  • Improve air connectivity with direct flights between major cities to boost tourism and business travel.

Conclusion:

• Austria, one of the richest countries in the European Union, is an important link for India in its relationship with Europe, especially with countries of central and Eastern Europe. India-Austria economic and commercial cooperation constitutes an important dimension of the bilateral relationship.

Source

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2032251

https://fsi.mea.gov.in/Portal/ForeignRelation/INDIA-AUSTRIA_june_2023.pdf