International

India and Mongolia Elevate Bilateral Ties to Strategic Partnership with 10 MoUs, Emphasizing Oil Refinery Funding and Uranium Supplies

October 15, 2025
India-Mongolia RelationsStrategic PartnershipBilateral AgreementsEnergy SecurityDefence CooperationCultural Ties

Why in News

During Mongolian President Khurelsukh Ukhnaa's state visit to New Delhi, India and Mongolia marked the 70th anniversary of their diplomatic relations and the 10th year of their strategic partnership by signing 10 Memorandums of Understanding (MoUs) across various sectors, including energy, defence, and culture, while announcing key initiatives like India's funding for Mongolia's first oil refinery and exploring uranium supplies to enhance mutual cooperation.

Key Points

  1. India and Mongolia elevated their bilateral relations to a comprehensive strategic partnership, building on the foundation established during Prime Minister Narendra Modi's visit to Mongolia in 2015.
  2. The two countries signed 10 MoUs covering areas such as cultural exchange, immigration cooperation, promotion of cooperatives, humanitarian aid, geology and mineral resources, yoga, digital cooperation, and the renovation of the Bogd Khan Palace in Mongolia.
  3. India committed to funding Mongolia's first oil refinery project with a $1.7 billion line of credit, expected to process 1.5 million tonnes of crude oil annually and become operational by 2028, marking India's largest development assistance project globally.
  4. Discussions focused on sourcing uranium from Mongolia, which holds up to 90,000 tonnes of reserves, along with other critical minerals like copper, gold, zinc, and coking coal to support India's energy and industrial needs.
  5. Defence cooperation was strengthened with the appointment of a resident Indian defence attaché in Ulaanbaatar, new training programmes for Mongolia's border security forces, and ongoing joint military exercises like Nomadic Elephant and Khaan Quest.
  6. India will provide free e-visas to Mongolian citizens and launch a project to digitize one million ancient manuscripts, while sending holy relics of Lord Buddha's disciples, Sariputra and Maudgalyayana, to Mongolia in 2026.
  7. A separate MoU was signed between India's Ladakh Autonomous Hill Development Council and Mongolia's Arkhangai Province to boost cultural and people-to-people ties, given their shared Buddhist heritage.
  8. The leaders released commemorative postal stamps to mark 70 years of diplomatic relations and explored the possibility of direct flights between the two countries, with a Mongolian carrier planning charter flights to New Delhi and Amritsar.
  9. Prime Minister Modi described India and Mongolia as "spiritual siblings" due to their shared Buddhist heritage, while President Khurelsukh highlighted the partnership's foundation in trust, friendship, and democratic values.
  10. The visit, the first by a Mongolian president in six years, underscored cooperation in international forums for a rules-based Indo-Pacific and amplifying the voice of the Global South.

Explained

What is the significance of the recent India-Mongolia meeting and the elevation of their ties to a strategic partnership?

Background of Bilateral Relations: India and Mongolia established diplomatic ties in 1955, making 2025 the 70th anniversary; their relationship was upgraded to a strategic partnership in 2015 during PM Modi's historic visit to Ulaanbaatar, the first by an Indian PM, focusing on shared values like democracy, Buddhism, and mutual development goals.

Key Outcomes of the Meeting: During President Khurelsukh Ukhnaa's visit on October 14, 2025, the two nations signed 10 MoUs and announced initiatives to deepen cooperation, reflecting a commitment to expand ties beyond traditional areas into energy, defence, and digital sectors for mutual benefit.

Strategic Importance for India: This partnership helps India diversify its mineral imports, counterbalance China's influence in Mongolia (a landlocked nation between Russia and China), and strengthen its presence in Central Asia through cultural and economic linkages.

What are the details of the 10 MoUs signed between India and Mongolia?

List of Agreements: The MoUs cover cultural exchange (including yoga and manuscript digitization), immigration cooperation (facilitating free e-visas for Mongolians), promotion of cooperatives, humanitarian aid, geology and mineral resources (exploring uranium and critical minerals), digital cooperation, quick impact projects, and the renovation of Mongolia's Bogd Khan Palace using Indian expertise.

Additional Regional MoU: A separate agreement between Ladakh Autonomous Hill Development Council and Arkhangai Province aims to enhance cultural ties, leveraging shared Buddhist heritage sites like monasteries in both regions.

Implementation and Impact: These pacts are designed to foster people-to-people connections, with initiatives like sending a Sanskrit teacher to Mongolia's Gandan Monastery and linking it with India's Nalanda University for Buddhist studies.

What is the oil refinery project funded by India in Mongolia?

Project Overview: India is providing a $1.7 billion line of credit for Mongolia's first oil refinery, located in Sainshand, which will process 1.5 million tonnes of crude oil annually (equivalent to 30,000 barrels per day) and is expected to be operational by 2028.

Background and Rationale: Mongolia, rich in natural resources but dependent on imports for refined petroleum, aims to achieve energy independence; the project involves over 2,500 Indian professionals and is India's largest overseas development assistance, symbolizing strong bilateral trust.

Economic Benefits: It will reduce Mongolia's reliance on Russian and Chinese supplies, create jobs, and open avenues for Indian companies in Mongolia's energy sector, while India gains a foothold in Central Asian resource markets.

Why is India interested in sourcing uranium and other minerals from Mongolia?

Mongolia's Mineral Wealth: Mongolia has estimated uranium reserves of up to 90,000 tonnes, along with significant deposits of copper, gold, zinc, and coking coal; it recently signed a deal with France for annual extraction of 2,500 tonnes of uranium.

India's Energy Needs: As the world's third-largest energy consumer, India seeks to diversify uranium sources for its nuclear power plants (currently sourcing from Kazakhstan, Canada, and Australia) to meet growing electricity demands and reduce dependence on fossil fuels.

Broader Geopolitical Context: This cooperation counters China's dominance in Mongolia's mining sector (where most coal exports go to China) and aligns with India's strategy to secure critical minerals for electric vehicles, renewables, and manufacturing under initiatives like Make in India.

How has defence and security cooperation between India and Mongolia evolved?

Historical Context: Defence ties began strengthening post-2015 strategic partnership, with joint exercises like Nomadic Elephant (army) and Khaan Quest (multinational peacekeeping) held annually since 2006 and 2004, respectively.

New Initiatives: India will appoint a resident defence attaché in Ulaanbaatar, launch capacity-building for Mongolia's border forces (including drone training), provide military equipment grants, and continue cyber-security training; this helps Mongolia modernize its forces amid regional tensions.

Strategic Relevance: As landlocked neighbours of China, both nations share concerns over border security; this cooperation supports India's Act East Policy and Mongolia's "third neighbour" strategy to balance relations with Russia and China through ties with India, Japan, and the US.

What cultural and people-to-people initiatives were announced during the visit?

Shared Buddhist Heritage: Described as "spiritual siblings," the nations will send relics of Sariputra and Maudgalyayana to Mongolia in 2026, digitize one million ancient manuscripts, and renovate Buddhist monasteries like Bogd Khan Palace with Indian aid.

Educational and Tourism Links: India will send a Sanskrit teacher to Gandan Monastery, link it with Nalanda University, and introduce free e-visas for Mongolians; a Mongolian airline plans charter flights to Delhi and Amritsar to boost tourism.

Symbolic Gestures: The leaders released commemorative stamps for the 70th anniversary and planted a sapling under "Ek Ped Maa Ke Naam," fostering emotional bonds and promoting yoga and cultural exchanges.

What is the broader geopolitical context of India-Mongolia relations?

Mongolia's Foreign Policy: As a landlocked democracy between Russia and China, Mongolia pursues a "third neighbour" policy to engage countries like India for economic diversification and security, reducing over-reliance on its giants.

India's Perspective: Ties align with India's Neighbourhood First and Act East policies, providing access to Central Asian resources, countering China's Belt and Road Initiative influence, and promoting a rules-based Indo-Pacific order.

Global Cooperation: Both nations collaborate in forums like the UN, supporting Global South issues; trade is modest at $50 million annually, but potential in mining and energy could boost it significantly.

MCQ Facts

Q1. What is the primary objective of India's funding for Mongolia's first oil refinery project?
A) To enhance Mongolia's agricultural exports
B) To support Mongolia's energy independence
C) To establish a military base in Mongolia
D) To promote tourism between the two nations
Explanation: India's $1.7 billion line of credit for the Sainshand oil refinery aims to help Mongolia reduce its dependence on imported refined petroleum, fostering energy self-sufficiency and strengthening bilateral economic ties.

Mains Question

Discuss the evolution of India-Mongolia relations and analyze how the recent elevation to a comprehensive strategic partnership contributes to India's foreign policy objectives in Central Asia.

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