India-Romania Defense Agreement | 03 Apr 2023

Why in News?

Recently, India and Romania have signed the Defense Cooperation Agreement, aiming to set up and expand Military Cooperation between both countries.

What is the Agreement About?

• The agreement will provide the legal framework for future cooperation in the field of defense through the exchange of expertise and knowledge on subjects of mutual interest including co-development and co-production of military hardware.
• The agreement will promote cooperation in the field of defense between both countries and open up enormous opportunities in sectors like defense medicine, scientific research, cyber defense, technology and research and development.

What is the Significance of the Agreement?

• The EU (European Union) Strategy for cooperation in the Indo-Pacific is an opportunity to strengthen EU-India cooperation in the region. Romania is committed to active involvement in the Indo-Pacific within the framework of this strategy.
• The EU-India Strategic Partnership roadmap and commitments from the EU-India Leaders’ Meeting in May 2021 provide a good basis to enhance cooperation and promote regional security in the Indo-Pacific.
• Strengthening relations with Indo-Pacific partners is crucial for addressing global challenges and upholding the rule-based international order at both bilateral and multilateral levels.

How have been the India-Romania Relations?

• Diplomatic Relation:
  • India-Romania bilateral ties, formally established in 1948, have witnessed a steady growth.
  • Both maintained friendly and cordial relations, culminating in the celebration of 70 years of diplomatic ties in 2018.
  • Since the 1989 revolution in Romania, which overthrew the communist government, both countries have steadily increased trade and investments in each other.
  • At the multilateral level, India and Romania have extended support to each other at the UN.
• Trade and Investments:
  • Romania has in the past collaborated in projects involving petroleum, petrochemicals, power, and metallurgy industries in India. Romania was engaged in oil refinery projects in Assam and Bihar. Romania also shared their technology know-how for a thermal power plant in Singareni, the Mangalore pellet plant, the Durgapur steel plant, and a Hyderabad tractor plant.
  • An Agreement on Trade and Economic Cooperation, granting mutual Most Favored Nation (MFN) status to each other was signed in 1993.
  • Since 2013, the trade volume has been around USD 600-800 million; both sides expect this figure to touch the one billion mark soon.
• Green Energy:
  • Romania has engaged in reducing its carbon blueprint and is committed to achieve the EU ambitious new targets to curb further the climate change.
  • Romania together with India can certainly cooperate and collaborate in this key sector.
  • The two nations can work together to reduce carbon footprint and focus on harnessing sustainable sources of power, such as solar energy.
  • Romania is determined to become shortly a member of the International Solar Alliance, positive steps have already been taken.
• Connectivity:
  • Romanian infrastructure companies can work with Indian partners to expand connectivity across Europe and India.
  • Through the International North-South Transport Corridor (INSTC), India remains committed to building a multimode network, connecting India to Iran, Azerbaijan, Iran, Afghanistan, Russia, Central Asia, and Europe.
  • This will enhance the movement of freight North-South.
  • The Romanian government has also undertaken expansion of the trans-European transport network.
  • These mega connectivity projects will have many meeting points and scope for collaboration.

Way Forward

• There are many challenges in the International Fora such as supply chain disruption, War and Conflicts and climate change etc.
• Both Romania, a NATO (North Atlantic Treaty Organization) and EU member, and India, fifth economy in the world and one of the largest troop contributors to United Nations peacekeeping missions, could play a constructive role in overcoming these challenges.

Source: IE