India is deepening its strategic engagement with Mongolia, marked by increased defense cooperation, infrastructure development, and cultural exchanges, as highlighted during the recent visit of Mongolian President Khurelsukh Ukhnaa to New Delhi. The visit commemorates 70 years of diplomatic relations and a decade of strategic partnership between the two nations.
A key development is India's decision to appoint a resident Defence Attaché at its embassy in Ulaanbaatar, fulfilling a long-standing request from Mongolia. This move underscores the growing defense partnership between the two countries. To further strengthen defense ties, India has also announced a new capacity-building program for Mongolia's border security forces. Joint military exercises, such as "Nomadic Elephant" and "Khan Quest," continue to enhance interoperability and counterinsurgency skills. Mongolia also seeks upgrades to the India-assisted Cyber Security Training Centre.
Economic cooperation is another significant aspect of the strengthened India-Mongolia relationship. A major focus is India's flagship infrastructure project in Mongolia: a $1.7 billion oil refinery being developed with Indian assistance under a line of credit. This is India's largest infrastructure initiative on foreign soil and is expected to be completed by 2028. President Ukhnaa has called the refinery project "strategically crucial" for Mongolia's energy security. Both countries are also exploring joint oil and gas exploration opportunities. Mongolia has also invited India to invest in oil exploration in its territory.
Beyond energy, Mongolia possesses significant reserves of coking coal, copper, gold, and uranium, which India is keen to procure. Discussions are underway to finalize routes for shipments of minerals and other produce to India, considering options such as China's Tianjin port and Russia's Vladivostok port.
India is also keen to tap into Mongolia's vast coal reserves, as well as uranium. An India-supported mega oil refinery in Mongolia, the Dornogobi Oil Refinery, being built with a $1.7 billion Line of Credit (LoC), is slated to become operational in 2028.
Cultural and people-to-people exchanges are vital components of the India-Mongolia partnership. To boost mobility and cultural exchange, India will offer free e-visas to Mongolian citizens and sponsor annual visits of young cultural ambassadors from Mongolia. A local-level cooperation agreement has been signed between the Ladakh Autonomous Hill Development Council and Mongolia's Arkhangai province, highlighting the focus on cultural and civilizational linkages. India will send the holy relics of Lord Buddha's disciples to Mongolia in 2026. A Sanskrit teacher will also be sent to the Gandan Monastery to facilitate deeper studies in Buddhist philosophy.
Both countries share a common vision for a free, open, inclusive, and rules-based Indo-Pacific and are committed to close cooperation in international forums. Mongolia has also expressed its support for India's campaign for a permanent seat in the UN Security Council.
Prime Minister Modi has described India as a "steadfast" and "reliable partner" in Mongolia's development. He also stated, "Our borders may not touch, but our hearts and heritage do".