It is hard to see how bilateral relations with Mongolia can be strengthened with the budgetary support for aid for Mongolia for 2017-18 earmarked at a mere Rs 5 crores. This is an amount just about sufficient to buy two or three high-end cars. New Delhi thus risks making a mockery of itself in the eyes of Mongolia, sandwiched between its giant neighbours China and Russia, that has gone out of its way to accord India the privileged “third neighbour” status at the cost of incurring Beijing’s displeasure.
While Mongolia isn’t in the day-to-day consciousness of most Indians, the country’s significant geostrategic dimension can hardly be overlooked. It was to bolster this that Prime Minister Narendra Modi visited Ulan Bator in May 2015, becoming the first Indian PM to do so. There is much respect for India in Mongolia as New Delhi was the first country outside the socialist bloc to recognise Mongolia and had supported its entry into the UN.
Mongolia’s population is around that of the city of Kanpur, but its land mass equals half of India’s in area. Besides, the country is super-rich in minerals, including strategic minerals. This is the reason American companies have shown a not inconsiderable interest in Ulan Bator.
While we have a line of credit of $1 billion, that amounts to a pledge to spend if Ulan Bator indicates projects. That money is returnable, of course. Indian aid, specially on soft terms, would have had a different ring. The situation needs to be urgently remedied.
