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INDIA-GREECE RELATIONS

2024 FEB 25

Mains   > International relations   >   India and Global Powers   >   Internationl trade

SYLLABUS

GS 2 >> International Relations >>> India and Global powers

REFERENCE NEWS

  • The recent visit of Greek PM Kyriakos Mitsotakis to India marks the first visit by a Greek prime Minister to India since 2008.

MORE ON NEWS - OUTCOMES OF THE VISIT

  • India-Greece aims to double their bilateral trade to nearly $4 bn by 2030. The bilateral trade between the two nations stood at $1.9 bn in 2022-23. 
  • Pharmaceuticals, ports, chemicals, shipping, food, communications and defence as key sectors to help double their bilateral trade.
  • Establishment of a joint working group on defence, maritime security, counterterrorism and cybersecurity to bolster the defence collaboration.

HISTORY OF INDIA-GREECE RELATIONS

A. EARLY PHASE

  • India-Greece ancient interactions, started with Alexander’s campaign in the 4th century BCE.
  • Edicts of Ashoka mention the diplomatic, trade and cultural relations between Seleucus I and Chandragupta Maurya.
  • The 2nd century BCE marked a new era of Indo-Greek cultural exchange with the establishment of the rule of Greek rulers Demetrius I and Menander I in northwestern India.
  • Indo-Greek Period witnessed cultural exchanges in the fields of art, sculpture and architecture. Bamiyan Buddha, Gandhara school and Greco-Buddhist art are examples of ancient cultural exchanges between India and Greece.

B. MODERN PHASE

  • India and Greece established diplomatic relations in May 1950. India opened its resident Embassy in Athens in March 1978.
  • In August 2023, after the conclusion of BRICS Johannesburg Summit, PM Narendra Modi visited Greece, which was any Indian PM’s first visit to the country since Indira Gandhi last visited the country in September 1983. During the visit of the Indian PM, India and Greece elevated their cooperation to strategic partnership.

SIGNIFICANCE OF INDIA-GREECE RELATIONS

  • Strategic Gateway to Europe: Greece's Piraeus port is pivotal for India, acting as a strategic gateway to Europe, enhancing the IMEC corridor's utility.
  • Counterbalance to Chinese Influence: Strengthening ties with Greece is a strategic move for India to offset China's growing dominance in the Mediterranean region.
  • Alliance Strategy: Enhanced cooperation with Greece helps India counter the Azerbaijan, Pakistan, and Turkey trilateral alliance, promoting regional stability.
  • Shared Anti-Terrorism Stance: Greece supports India on combating terrorism and has stood with India on the Kashmir issue, reflecting a unified stance against terrorism.
  • Unified Views on Global Issues: Both nations share common perspectives on international politics, including UN reforms and the Cyprus issue, showcasing their aligned global visions.
  • Maritime Rule of Law Advocacy: India and Greece advocate for a rules-based maritime order, emphasizing freedom and legality in the Mediterranean Sea and Indo-Pacific.
  • Shipping Industry Collaboration: According to the International Trade Administration, Greek shipowners own roughly one-fifth of the world’s shipping fleet. With Greece's significant share in the global shipping fleet, India finds opportunities to modernize its shipping sector and explore investments in Greek ports.
  • EU Economic Cooperation: Greece's support for the EU-India Bilateral Trade and Investment Agreement fosters further economic ties between India and the EU.
  • Defense Export Potential: Greece’s plans to upgrade its military arsenal by investing €10 billion in the procurement of sophisticated aircraft and armaments, has created an opportunity for India to emerge as a major defense supplier.
  • Diplomatic Engagements: Regular diplomatic exchanges between the countries underscore their commitment to strengthening bilateral relations.
  • Support in Multilateral Fora: Greece has supported India’s bid for inclusion in the NSG in 2008 and for inclusion in the MTCR, Wassenaar arrangements, and Australia Group in 2016.
  • Economic Investments and Trade: Indian investments in Greece's privatization and a growing bilateral trade, which stood at $1.9 bn in 2022-23, highlight the economic dimension of their relationship. For ex- GMR Group has tendered a bid for upgradation and management of Heraklion airport at Crete Island.
  • Joint Military Exercises: Participation in exercises like 'Blue Flag' and INIOCHOS demonstrates the operational compatibility and defense collaboration between the two nations.
  • Promotion of Indian Culture: Organizations such as the Indo-Hellenic Society for Culture and Development (ELINEPA) play a significant role in promoting Indian culture in Greece, enhancing cultural diplomacy.

CHALLENGES IN INDIA-GREECE RELATION

  • Global Geopolitical Volatility: The India-Greece relationship is susceptible to the broader global geopolitical environment. For instance, tensions in the Red Sea region have disrupted trade routes critical for India-Greece commerce, emphasizing the vulnerability of their economic exchanges to international conflicts.
  • Influence of Regional Powers: The strategic challenge posed by the triad of Turkey, Azerbaijan, and Pakistan, particularly their efforts to extend geopolitical influence in the Mediterranean, Middle East, and Central Asia, directly impacts India's strategic interests in Greece. This triad's collaboration can complicate India's engagement in the region, necessitating careful diplomatic navigation.
  • Low Bilateral Trade and Investment: Despite the potential for economic cooperation, the trade volume between India and Greece remains relatively low. For example, in comparison to India's trade with other European countries, the bilateral trade with Greece stands modest, underscoring the need for targeted efforts to enhance economic ties.
  • Navigating EU Regulations: As a member of the European Union, Greece is subject to its regulations and policies, which can pose challenges for India in terms of aligning trade agreements and investments. The EU's stringent standards and protective measures can make it difficult for Indian businesses to penetrate the Greek market and vice versa.
  • Cultural and Linguistic Differences: The significant cultural and linguistic gap between India and Greece can impede deeper interpersonal and professional interactions, affecting various sectors including tourism, education, and business. For instance, language barriers may limit the effectiveness of marketing Indian products in the Greek market.
  • Limited Defense Collaboration: Despite potential areas for defense cooperation, actual military collaboration between India and Greece is still in nascent stages. Restrictions on technology transfer, competition from Greece's traditional defense partners, and differing strategic priorities have limited the scope of defense ties.
  • Infrastructural and Connectivity Constraints: Effective connectivity is crucial for maximizing the trade potential between India and Greece. However, infrastructural limitations, particularly in transportation and logistics, hinder the seamless flow of goods and services. The need for upgrading port facilities and enhancing logistical networks is evident to facilitate smoother trade routes.

WAY FORWARD

  • Mobility and Migration Partnership Agreement (MMPA)- Early finalization of Mobility and Migration Partnership Agreement (MMPA) will facilitate skilled migration, between the two countries.
  • Extensive Military Cooperation memoranda- Extensive military cooperation memoranda will lay the basis for joint exercises, technology and intelligence sharing.
  • Robust Connectivity- The connectivity between India and Greece must be enhanced by the establishment of more direct flights between the two countries.
  • Educational exchange programmes and Academic collaborations- The university student exchange programmes, cultural exchanges and scholarships must be increased for increasing the people to people connect between the two countries.

India-Greece geostrategic and geopolitical relations must be taken forward so that India becomes a major pole of the emerging new international order uniting three major seas (Mediterranean Sea, Red Sea and Gulf) and three continents (Europe, Asia and Africa).

PRACTICE QUESTION

Q: "Analyze the strategic importance of India-Greece relations in the context of contemporary global dynamics. (15M,250W)