Strengthening Diplomatic Ties: Narendra Modi’s Historic Visit to Austria

On July 9th, Prime Minister Narendra Modi embarked on a state visit to Austria, the first by an Indian Prime Minister since 1983. Following a two-day visit to Moscow, Russia, Modi arrived in Vienna for bilateral talks and high-level meetings with Austrian Chancellor Karl Nehammer and President Alexander Van der Bellen. These discussions culminated in an agreement to manufacture surveillance drones in India and a celebration of the 75th anniversary of diplomatic relations between the two countries.

Historically, India and Austria have enjoyed relatively warm ties, with both countries enjoying over $500 million of bilateral trade alongside close academic and cultural relations. In particular, Austria’s domestic space agency has cooperated with ISRO to launch its own indigenous satellites. Nevertheless, some contend that Austria’s relatively small economy, limited global influence, and modest military capabilities diminish its strategic importance for India. However, Austria’s historical neutrality and position within the European Union could elevate it to a key partner for India on the world stage.

After World War II, Austria emerged as a new republic. Bound by conditions of permanent neutrality, military limitations, and territorial adjustments, the nation rebuilt under a democratically elected government. This neutral stance, a delicate balance between the U.S.-led West and the Soviet-dominated East, has defined Austria’s role for decades. While the U.S. reportedly expressed unofficial disappointment over Austria’s continued neutrality post-Cold War, Vienna has steadfastly maintained its position as a neutral party. However, Austria joined the European Union in an effort to remain interconnected with its regional partners.

This neutrality was tested when Russia invaded Ukraine. Austria joined the EU in condemning the aggression and supported subsequent sanctions. However, due to its heavy reliance on Russian energy, it has refrained from imposing independent penalties. Austria’s history as a mediator is long-standing. From the Treaty of Vienna in 1738 to the 2015 Iran nuclear deal, the country has frequently played a conciliatory role in international disputes.

India has a long history of mediating international conflicts. This began during the Korean War when Prime Minister Jawaharlal Nehru played a pivotal role in repatriating prisoners of war captured in the conflict. Since then, India has utilized dialogue and diplomacy to help nations mend foreign relations and stabilize their respective regions, while refusing to take specific sides with certain powers or organizations. In particular, India has consistently employed dialogue and diplomacy to foster reconciliation and stability among nations while maintaining a non-aligned stance. 

India’s approach to the Russia-Ukraine conflict, in line with its tradition of mediating international conflicts, offers a beacon of hope. Instead of aligning with Western nations in imposing sanctions, India has prioritized a peaceful resolution through dialogue. By focusing on shared experiences and conflict mediation, India aims to minimize civilian casualties and cease hostilities, potentially paving the way for a more peaceful future in international relations.

With the significant degradation of diplomatic relations between Moscow and Brussels (alongside Kyiv), India and Austria have the potential to bridge the diplomatic gap between the two sides and develop a historic peace deal to end the conflict. With the country’s close ties with both Eastern and Western countries (especially its historic closeness with Russia), India can help encourage the Russian government to seek a mutually beneficial peace agreement with Ukraine, as Modi has maintained a close relationship with President Putin and considers each other close friends.

In Austria, a reluctance to join NATO under its permanent policy of neutrality, despite being a member of the EU and condemning Russia’s invasion of Ukraine, provides it with a neutral tone to act as a negotiator for the West. Additionally, Austria’s wealth, as displayed in GDP per Capita (over $55,000), has allowed it to establish strong economic relations with smaller and larger countries through investment opportunities and trade partnerships. Austria’s wealth can enable it to utilize economic diplomacy to find an effective solution to the conflict and help stabilize the region. Furthermore, Austria’s influence in European politics and economic affairs (with its position in the EU alongside having a strategically important location due to its placement between Eastern and Western Europe) can provide India with a direct channel and a foothold in European regional affairs, particularly as India continues to strengthen ties with both Russia and the European Union.