Laos, a small landlocked country in Southeast Asia, emerges as a potentially strategic ally for India due to a confluence of factors spanning economic, geopolitical, strategic, and sociocultural dimensions. Situated at the crossroads of Vietnam, Cambodia, Thailand, Myanmar, and China, Laos’ geographical location establishes it as a pivotal player in the regional landscape. For India, this presents a valuable opportunity for enhanced connectivity, trade, and diplomatic influence in Southeast Asia. The economic potential of Laos, particularly in sectors such as infrastructure and energy, provides a promising avenue for collaboration, aligning with India’s broader economic interests. Strengthening socio-cultural ties and leveraging shared historical linkages can serve as a foundation for deeper diplomatic relations. Moreover, as a member of ASEAN, Laos offers India a gateway for increased engagement with the larger Southeast Asian community. In the context of growing geopolitical complexities, a strategic partnership with Laos holds the potential to not only bolster India’s regional standing but also contribute to stability and cooperation in Southeast Asia.
India’s Interests
India stands to gain significantly from the abundant natural resources and strategic positioning of Laos, especially along the Mekong River. Recognizing the potential benefits, India could strategically invest in key infrastructure projects to enhance connectivity and trade links between the two nations. By focusing on the development of roads, ports, and railways, India can not only strengthen economic ties but also leverage Laos’s rich resource reserves.
Laos, with its considerable resource wealth and tactical location, has become an appealing destination for foreign investment. For India, this presents a golden opportunity to capitalize on the growth potential of the region. In particular, directing investments towards crucial sectors such as energy, transportation, and communication can foster mutual economic development. India’s proficiency in these areas positions it as a valuable partner for Laos, aiding the nation in overcoming existing infrastructural challenges, including inadequate road networks and limited electricity supply.
Laos, despite its lack of coastal borders, assumes a strategic significance owing to its secure location near China. The nation is surrounded by relatively stable and neutral states, including Vietnam, Cambodia, and Thailand, which collectively serve as a political buffer, mitigating the risks of conflict. Furthermore, the absence of direct maritime borders is compensated by a shared vital river basin, providing an additional layer of security against intrusion, assault, or sabotage attempts, particularly from China.
The relatively small but crucial border that Laos shares with China enhances its role as a secure bastion. For India, establishing a diplomatic and economic stronghold in Laos holds vital value as it enables closer monitoring of the southeastern frontiers, where China’s influence is prominent. Laos has historically maintained a neutral foreign policy, minimizing external interference and rendering it an opportune candidate for a congenial approach. India’s engagement with Laos not only capitalizes on its neutral stance but also presents an avenue for gradual conditioning toward a stronger alliance. This diplomatic initiative could potentially fortify India’s position in the region while fostering mutual interests and regional stability.
Trade Relations
The strengthening of bilateral trade ties between India and Laos took a significant step forward as business chambers from both nations signed four key agreements. These pivotal agreements were formalized after President Pratibha Devisingh Patil addressed a gathering of industry leaders, which included representatives from both India and Laos.
The first agreement, a Letter of Intent, was inked between the Lao Chamber of Commerce and Industry and the Indian Chamber of Commerce in Laos. The second agreement, a Memorandum of Understanding (MoU), was established between the Confederation of Indian Industry (CII) and the Indian Chamber of Commerce in Laos. The third MoU was signed between the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian Chamber of Commerce in Laos. Lastly, the fourth MoU was formalized between the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and the Indian Chamber of Commerce in Laos.
These agreements signify a concerted effort to enhance collaboration and cooperation between the business communities of India and Laos. By fostering stronger ties through these formal arrangements, both countries aim to promote economic growth, trade, and mutual prosperity. The involvement of prominent business chambers reflects a commitment to exploring new avenues for partnership and leveraging each other’s strengths for the benefit of their respective economies. This development underscores the commitment of both nations to deepening their economic engagement and creating a conducive environment for increased business activities.
The main objectives emphasized the pivotal role of the business chamber in promoting economic exchange between the Lao People’s Democratic Republic (PDR) and India. The primary goals include facilitating trade and investment by fostering the exchange of economic data and information that can augment the economic ties between the two nations. The chamber also envisions arranging business forums and significant events, serving as platforms for networking and collaborative initiatives. Importantly, the overarching aim is to cultivate and strengthen mutual friendship and goodwill between the people of India and Laos.
Cultural Relations
Human resource development:
The Government of India has actively contributed to the development of human resources and infrastructure in Laos through various initiatives. Annually, nearly 120 scholarships are provided to Lao nationals across different schemes, demonstrating India’s commitment to educational and skill development. The Indian Technical and Economic Cooperation (ITEC) program has been instrumental in training about 1500 Lao nationals, contributing significantly to capacity building.
The Lao-India Entrepreneurship Development Centre (LIEDC), established in November 2004, focuses on training Lao entrepreneurs to set up small and medium-scale businesses. Additionally, the Lao India Centre for English Language Training (LICELT), initiated in June 2007 at the National University of Laos, Vientiane, plays a crucial role in human resource development.
India has also made substantial contributions to the technological landscape of Laos. An IT centre was established in Vientiane in November 2004, followed by the inauguration of a National Data Centre in May 2006. To address rural communication needs, ten Rural Telecommunication Centers were set up in various provinces, as well as in key government offices, including the Ministry of Health and the Governor’s office in Vientiane.
In the realm of software development, the Centre for Excellence in Software Development and Training (CSEDT) was inaugurated in Vientiane on 26 November 2018, showcasing India’s commitment to advancing technology and fostering expertise in this critical field. These initiatives collectively underscore the strong bilateral ties between India and Laos, emphasizing India’s role in contributing to the socio-economic development and human resource empowerment in Laos.
Heritage Conservation:
The signing of a Memorandum of Understanding (MOU) in May 2007 marked a significant milestone in India’s collaboration with the Ministry of Information and Culture for the restoration of the UNESCO World Heritage site at Vat Phu, an ancient Shiva Temple in Laos. Commencing the project in June 2009, the restoration work unfolded in multiple phases.
The completion of eight seasons of restoration work in Phase I by May 2017 showcased substantial progress in preserving and revitalizing this culturally and historically significant site. Building on this success, Phase II of the project commenced in November 2018, with an anticipated completion date in 2027.
The collaborative efforts between India and Laos in restoring Vat Phu exemplify the allegiance to preserving shared cultural heritage and fostering international cooperation in the realm of cultural conservation. The undertaking not only contributes to the physical restoration of the temple but also serves as a testament to the enduring partnership between the two nations in the preservation of cultural treasures with global significance.