Indian Vice President Hamid Ansari just concluded his visit to Brunei, a sovereign state located on the north coast of the island of Borneo in Southeast Asia. His visit is part of India’s Act East policy which has gained momentum after Prime Minister Narendra Modi assumed office in May 2014. Brunei is an energy rich nation whose economy depends on hydrocarbon export and has second highest per capita income in Southeast Asia after Singapore. India-Brunei established diplomatic relations in 1984, when Brunei gained independence from the United Kingdom. India and Brunei have historical and cultural roots as extension of India’s relations with peninsular Malaysia and the Indonesian Island. Brunei has been supportive of India’s Act East policy and expansion and deepening of cooperation with ASEAN. Brunei also supports India’s claim for permanent membership in an expanded UNSC.
India’s exports to Brunei in 2013 amounted to USD 32 million while imports (mainly crude oil) from Brunei were valued at USD 763 million. India is the third-largest importer of crude oil for Brunei. The reasons inhibiting bilateral trade have been relatively high shipping costs, and Brunei’s small population base. Indians form 2.3 percent of Brunei’s population. Indians started coming to Brunei since 1929 when oil was discovered in the country. Majority of the doctors in Brunei are from India. Other professionals include engineers, IT professionals, bankers, teachers etc. Indian businessmen have a near monopoly in textiles. There are approximately 10,000 Indian nationals living and working in Brunei.[1]
Ansari’s present visit is a first high level visit from India and aims to further cement India-Brunei relations. Three MoUs have been signed during his visit on health, defense and youth and sports. The most important is to enhance Defense Cooperation between India and Brunei through exchange of visits, conduct of joint military exercises, seminars, discussions and cooperation between the defense industries.[2] India will also set up a fertilizer plant in Brunei which will generate local employment. The navies of two countries have been already cooperating. Indian naval ship INS Airavat came from 4-9 July 2011 to participate in the first-ever Brunei International Fleet Review to mark the 50th anniversary of Royal Brunei Armed Forces. A Bruneian ship – ‘KDB Darulaman’, participated in biennial gathering organized by the Indian navy named MILAN in 2012 (Andaman).
Brunei has a territorial dispute with China in the South China Sea. In wake of China’s increasing assertive behavior in South China Sea recently, the affected countries like Brunei, Vietnam and Philippines favor increased Indian presence in the region to balance China. India-Brunei maritime cooperation will pick up under the defense MoU signed during Ansari’s visit. He discussed the dispute with Sultan of Brunei and India said it supports a negotiated settlement of Brunei’s maritime dispute with China.[3] India has even offered the services of its retired soldiers to the tiny island nation to augment its armed forces. Brunei, so far, has been dependent on British military support, especially in the form of soldiers. If accepted, Indian hands could replace British forces in Brunei.[4]
India is also keen to expand anti-terrorism cooperation with Brunei. India can increase its oil imports from Brunei which would lessen its dependence on Middle East oil to some extent. India can also use its strength of information and technology to help Brunei in this regard.
Endnotes
[1] India-Brunei Relations, http://www.mea.gov.in/Portal/ForeignRelation/Brunei_July_2014.pdf
[2] India, Brunei ink 3 agreements, Feb 2, 2016, http://news.webindia123.com/news/Articles/India/20160203/2784979.html
[3] K Bhattacharjee (2016), “India, Brunei discuss South China Sea dispute”, Feb 3, http://www.thehindu.com/news/international/india-brunei-discuss-south-china-sea-dispute/article8185345.ece
[4] Maneesh Chhibber (2016), “India offers its retired soldiers to guard Brunei”, Feb 3, http://indianexpress.com/article/india/india-news-india/india-offers-its-retired-soldiers-to-guard-brunei/