Austria-India relations

Category: International Relations

Austria-India relations

Historical Context

The relationship between Austria and India can be traced back to colonial endeavors, notably during the Habsburg monarchy, which made several attempts to colonize the Nicobar Islands. The first attempt in 1778 proved successful, establishing a brief Austrian presence in the region. Subsequent attempts to colonize the islands faced challenges, with the second enterprise being canceled and the third, planned for 1886, being abandoned due to British colonization activities that began in 1868. This early historical connection set the stage for future diplomatic relations between Austria and India.

Establishment of Diplomatic Relations

Formal diplomatic ties between India and Austria were established in May 1949, under the leadership of India’s first Prime Minister Jawaharlal Nehru and Austria’s inaugural post-World War II Chancellor Leopold Figl. The nascent relationship between the two nations quickly established itself on a sturdy foundation of mutual respect and support. Notably, during the discussions surrounding the Austrian State Treaty in 1953, India intervened in favor of Austria, highlighting the strong diplomatic rapport. India’s backing continued with its support for Austria's stance on the UN-South Tyrol conventions, showing a commitment to bilateral cooperation.

Institutional Mechanisms for Cooperation

At the governmental level, several mechanisms facilitate the relationships between India and Austria, including Foreign Office Consultations (FOC) and the Joint Economic Commission (JEC). These entities serve as platforms for dialogue and collaboration. Established in 1983, the Indo-Austrian JEC fosters ongoing discussions between governmental ministries and the chambers of commerce and industry of both nations. The 5th FOC, which took place in Vienna in February 2011, and the 15th JEC in New Delhi in July 2017, exemplified sustained engagement and dedication to strengthening economic and political ties.

High-Level Visits and Expanding Relations

High-level visits have characterized the diplomatic interactions between Austria and India. Noteworthy visits include Prime Ministers Nehru and Indira Gandhi's trips to Austria in 1955 and 1971, respectively. Furthermore, a reciprocal exchange was marked by Chancellor Bruno Kreisky’s visit to India in 1980, and Indira Gandhi's visit in 1983. These engagements reinforced the importance of dialogue between leaders. More recent visits, including that of Indian President K. R. Narayanan in 1999 and Austrian President Heinz Fischer in 2005, further broadened the diplomatic landscape. During President Pratibha Patil's visit in 2011, Austria expressed support for India's aspirations for a permanent seat on a reformed United Nations Security Council, acknowledging India's significance in the evolving global political arena.

Advancements in Space Collaboration

A modern chapter in Indo-Austrian relations emerged through cooperation in space technology. The Indian Space Research Organisation (ISRO) played a crucial role in launching Austria’s first satellites, TUGSAT-1 and UniBRITE-1, on February 25, 2013. This collaboration highlights the growing dimensions of technological and scientific cooperation between the two countries and serves as a testament to the trust and partnership built over decades.

Commemorating Diplomatic Milestones

In 2019, Austrian Federal Minister for Europe, Integration & Foreign Affairs, Karin Kneissl, visited India to commemorate the 70th anniversary of diplomatic relations. This milestone created an opportunity to reflect on the achievements and potential for future collaboration. The visit underscored the longevity and depth of the ties between Austria and India, positioning the relationship as one that is both historically rich and forward-looking, promising continued engagement across various sectors in the years to come.

Economic Relations

The economic ties between Austria and India have blossomed significantly, particularly highlighted by the extensive collaborations that have emerged over the years. As of September 2019, there were over 200 partnerships between Indian and Austrian companies that included around 100 technical collaborations and 60 joint ventures. These partnerships are notably concentrated in key industrial sectors such as steel, manufacturing technology, railways, transport, and metallurgy – sectors critical to both countries’ economic landscapes. This growing interdependence showcases the mutual interest in harnessing each other's strengths for enhanced economic growth and innovation.

Bilateral trade figures underline the strengthening economic relationship, with trade between Austria and India amounting to EUR 1.869 billion in 2018, reflecting an impressive growth rate of 18.35% compared to the previous year. India's exports to Austria for that year were valued at EUR 945.92 million, while imports from Austria were slightly lower at EUR 923.54 million. The diversity of goods traded illustrates the complexity of this relationship; India primarily exported apparel, textiles, footwear, rubber articles, vehicles, and parts for railways, in addition to electrical machinery and mechanical appliances. Conversely, Austria exported significant quantities of machinery, mechanical appliances, railway parts, iron, and steel, showcasing each nation's competitive advantages in manufacturing and engineering.

In terms of investments, the Austrian National Bank reported that India received a cumulative foreign direct investment amounting to EUR 532 million from Austria in 2018, while India had made a direct investment of EUR 128 million in Austria during the same timeframe. This investment flow signifies a growing confidence in each country's market potential, further strengthening their economic bonds and encouraging multi-faceted engagement.

To support and facilitate these economic interactions, India and Austria have made vital agreements since the late 20th century. They established an Air Services Agreement in 1989, fostering better connectivity between the nations. An MoU on Air Services was signed in June 1997, along with the signing of a Double Taxation Avoidance Agreement and a Bilateral Investment Protection Agreement in 1999. These agreements are foundational for evolving economic partnerships, as they help mitigate risks associated with cross-border trade and investments, thereby laying the groundwork for enhanced bilateral cooperation. As both countries continue to explore new avenues for collaboration, the prospects for future economic relations appear promising.

Historical Contributions

The cultural ties between Austria and India have deep historical roots that can be traced back to Joseph Tiefenthaler, an Austrian Jesuit missionary whose contributions to geography and ethnography in the 18th century remain significant. Arriving in India in 1740, Tiefenthaler established himself in Agra, serving as the rector of the local Jesuit school. During his three decades in India, he compiled extensive writings about the country, documenting its geography, culture, and society. His mortality on July 5, 1785, in Lucknow did not diminish his impact; rather, his travelogues were eventually referenced as evidence in India's Supreme Court during the landmark Ayodhya dispute verdict of 2019, showcasing the enduring significance of his work.

Academic Development

The academic relationship between Austria and India has also flourished, particularly in the field of Indology. Sanskrit studies were introduced at the University of Vienna in 1845, reflecting a growing interest in Indian philosophy, literature, and culture. Over the years, this endeavor evolved: what started as a chair for Sanskrit studies shifted to an Institute for South Asian, Tibetan, and Buddhist Studies in 1955. This institute plays a crucial role in fostering research and education related to the diverse cultural tapestries of South Asia. A significant collaboration was formalized in February 2011 when the Indian Council for Cultural Relations (ICCR) and the University of Vienna signed a Memorandum of Understanding to create a short-term Chair of Indian Studies, which continues to enhance cultural and educational exchanges. This agreement was renewed in 2016, further solidifying the academic partnership.

Artistic Engagement

Cultural exchanges have also flourished through the arts, where several renowned Indian artists have performed in Austria, showcasing the richness of Indian classical music and dance. Notable musicians such as Amjad Ali Khan, Zakir Hussain, Hariprasad Chaurasia, Vishwa Mohan Bhatt, and Anoushka Shankar have taken the stage in Vienna, captivating audiences with their performances. The Austrian music scene has been enriched by the presence of eminent conductor Zubin Mehta, who is closely associated with the Vienna Philharmonic. His celebrated New Year concerts at the iconic Musikverein concert hall, including his performance in 2015, have made significant contributions to cultural diplomacy. The Bollywood film industry has also made inroads, with several films being screened in Vienna and filmed in picturesque Austrian locales, further bridging the cultural gap between the nations.

Tourism and Exchange

Tourism has emerged as a vital aspect of the relationship between Austria and India, with a growing number of Indian visitors eager to experience Austria's historical and natural wonders. In 2013, approximately 25,000 Indian tourists visited Vienna, drawn by its rich cultural heritage and scenic beauty. In February 2016, India and Austria formalized their cultural cooperation by signing a Memorandum of Understanding on Cultural Exchange, building on the historical connections and fostering new opportunities for collaboration. This partnership not only aims to enhance cultural ties but also stimulates tourism, encouraging greater understanding and appreciation between the peoples of both nations.

Indians in Austria

As of September 2019, the Indian community in Austria was estimated to be around 31,000 individuals. This vibrant diaspora predominantly comprises residents hailing from the southern state of Kerala and the northern region of Punjab. The presence of these communities has enriched Austria’s cultural landscape, contributing to the nation’s diversity through food, festivals, and traditions unique to the Indian subcontinent.

The majority of Indian migrants in Austria have found employment in the healthcare sector, which underscores their significant participation in an industry that has increasingly become a cornerstone of the Austrian economy. Many are healthcare professionals, including doctors, nurses, and therapists, who have played a vital role in supporting and enhancing the healthcare services within the country. In addition to those employed in healthcare, a number of Indians are also self-employed, running businesses ranging from restaurants to IT consultancy firms. This entrepreneurial spirit further adds to the economic fabric of Austria.

The integration of Indians into Austrian society has also been facilitated by various cultural associations and organizations that promote mutual understanding and collaboration between the two cultures. Festivals such as Diwali and Holi are celebrated with enthusiasm, not only by the Indian community but also by Austrians, fostering intercultural dialogue and community bonding. Moreover, the educational landscape has seen increasing numbers of Indian students pursuing higher education in Austrian universities, especially in fields like engineering, business studies, and health sciences.

Overall, the Indian community in Austria is a dynamic and evolving entity that showcases the benefits of multiculturalism, providing a bridge between Austria and India. Their contributions significantly enhance both the cultural diversity and economic vitality of Austria, making them an integral part of the country's demographic and social fabric.

Migration and Mobility Agreement

In May 2023, a significant step was taken to strengthen the ties between Austria and India with the signing of a Migration and Mobility Agreement. This agreement, formalized during the EU Indo-Pacific Ministerial Forum in Stockholm, was signed by Austrian Foreign Minister Alexander Schallenberg and Indian External Affairs Minister Subrahmanyam Jaishankar. The partnership is designed to facilitate legal work migration, making it easier for individuals to move between the two nations for employment opportunities.

One of the key aspects of this agreement is its focus on improving the exchange of students between India and Austria. By implementing measures such as rapid visa processing, the agreement aims to create a more conducive environment for academic collaboration and cultural exchange. This initiative will particularly benefit students, researchers, and professionals, including journalists who seek to gain experience and knowledge in either country. The emphasis on education and research highlighted in this agreement underlines the shared commitment of both nations to foster human capital development.

Additionally, the agreement envisions the establishment of an Austrian-Indian Working Holiday Programme. This initiative will offer young people from both countries the opportunity to travel, work, and appreciate each other's cultures. Such programs not only enhance personal experiences but also promote stronger bilateral ties, as participants develop a better understanding of the social and economic landscapes of their host countries.

Overall, the Migration and Mobility Agreement represents a forward-thinking approach to international cooperation, opening channels for professional and educational exchanges while fostering a deepened relationship between Austria and India. Both nations stand to gain significantly from this partnership, as it serves as a framework for continued collaboration in various sectors, ultimately contributing to a richer and more diverse global landscape.