INDIA-AZERBAIJAN RELATIONS

NEWS:  India and Azerbaijan initiated a diplomatic reset following years of strained relations triggered by Operation Sindoor.

BACKGROUND

• Azerbaijanà condemned India’s military action in Operation Sindoor as part of the “Three Brothers” alliance with Turkey and Pakistan.
• Relationsàfurther complicated by India’s deepening defence ties with Armenia, Azerbaijan’s adversary.

Overview of India-Azerbaijan Relations

• Indiaà Currently Azerbaijan’s seventh-largest trading partner+ bilateral trade reaching a peak of $1.88 billion in 2022.
• Balance of trade is heavily skewed in favour of Azerbaijan due to India’s significant imports of crude oil.
• Key Export: Basmati rice, pharmaceuticals, machinery, and electronics.
• Key Import: Crude oil accounts for roughly 98% of total imports.
• Azerbaijan àserves as India’s gateway to the South Caucasus+ a key node in the International North-South Transport Corridor (INSTC).
• ONGC Videsh Ltd (OVL) holds a ~2.9% stake in the ACG oil fields and a ~3.1% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline.
• Azerbaijan’s “Three Brothers” alliance with Pakistan and Turkey, and India’s defence ties with Armenia.