India has extended an invitation to Mongolia's newly elected President Khaltma Battulga, who is a very vocal critic of China. This move comes amid the escalating stand-off between India and China over the Doklam border in Sikkim.
Battulga has been very critical of Mongolia's economic dependence on China, especially after the larger country imposed a trade blockade against the former following the Dalai Lama's visit to Mongolia. During this period, India reached out to Mongolia, offering economic assistance.
Mongolia ultimately succumbed to pressure from China and asserted that the Tibetan leader would no longer be welcome in its land. The smaller country is now looking to expand economic relations with other countries, in an attempt to squeeze their way out of the debt trap arising out of its partnership with China. More than 90 percent of Monglia's exports are to China, and the foreign transactions between the two countries accounts for 68.5 percent of Mongolia's trade, reported Times of India.
In 2015, PM Narendra Modi visited Ulaanbaatar and expressed India's interest in extending a cultural and economic partnership with Mongolia. As soon as Battulga came to power, Indian Ambassador Suresh Babu was one of the first diplomats to call on the new President.
At this meeting, Battulga is said to have urged Babu to convey to Modi his proposal of opening an Indian Institute of Technology in Ulaanbaatar. The Indian government has also reportedly extended a credit of $1 billion to Mongolia.
The Indian-Mongolian friendship in fact dates back to 2009, when the two countries entered a civil nuclear deal, beginning a defence partnership.
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