 "PM Modi’s Austria visit: Celebrating 75 years of diplomatic ties, exploring scope for more")
Vienna is all set to lay the red carpet for Prime Minister Narendra Modi’s visit to Austria. It coincides with 75 years of establishing bilateral diplomatic relations between both countries. It is also the first visit by an Indian PM to Austria in 41 years. Ahead of his visit, PM Modi said that the India-Austria partnership will be built on ‘shared values of democracy’.
PM Modi will meet the Austrian President, Alexander Van der Bellen, who is fondly called “VDB”. He is a descendant of the former Russian Empire’s aristocratic Van der Bellen family of patrilineal Dutch ancestry dating back to the 18th century. VDB describes himself as a centrist liberal and supports green and social liberal policies. He has been the President of Austria since January 26, 2017.
Diplomatic Missions
The Indian Embassy in Vienna is concurrently accredited to Montenegro and the United Nations Office in Vienna. It is also accredited to the Holy See, which is the universal government of the Catholic Church and operates from Vatican City State, a sovereign, independent territory. Austria is represented in India by its embassy and trade commission in New Delhi, an Honorary Consulate General in Mumbai, and Honorary Consulates in Kolkata, Chennai, and Vasco da Gama, Goa.
Brief History
The Habsburg monarchy, and later the Austrian Empire, did make three attempts to colonise and settle in India’s Nicobar Islands between 1778 and 1886. The initial attempts were partially successful, and the last one had to be abandoned as Britain had already colonised them by then.
Diplomatic relations between newly independent India and Austria, which was still recovering from post-World War II trauma, were established in 1949. India supported Austria during negotiations with the Soviet Union on the Austrian State Treaty in June 1953. India also supported Austria at the UN-South Tyrol conventions. South Tyrol was part of the Austro-Hungarian Empire until it was annexed by Italy at the end of the First World War. The Fascists subjected the province to a campaign of forced Italianisation through the repression of the German language, mass migration of Italian-speakers to the province, and resettlement of the German-speaking population to the Third Reich. Official assimilation ended after the Second World War, but the dominance of Italian-speakers continued. Austria brought the issue to the United Nations General Assembly in the early 1960s. Finally, the so-called Autonomy Statute entered into force in 1972.
Governmental Institutions and High-Level Visits
The Indo-Austrian Joint Economic Commission (JEC) was established in 1983 and involves meetings between governmental ministries and Chambers of Commerce and Industry.
Impact Shorts
More ShortsPrime Ministers Nehru and Indira Gandhi visited Austria in 1955 and 1971, respectively. Chancellor Bruno Kreisky visited India in 1980. Indira Gandhi visited Austria for the second time in 1983. Chancellor Fred Sinowatz visited India in 1984. Indian President K R Narayanan visited Austria in 1999 and Austrian President Heinz Fischer visited India in 2005. President Pratibha Patil visited Austria in October 2011. During Patil’s visit, Austria expressed support for India’s bid for a permanent seat on a reformed United Nations Security Council. President Fischer stated, “We recognise that the world is changing fast and that the current composition in the Security Council does not reflect the realities of the new world order currently emerging. India deserves to play a bigger role in the Security Council.”
Austrian Chancellor Christian Kern met PM Modi for a bilateral meeting in St Petersburg in June 2017 on the sidelines of the St Petersburg International Economic Forum (SPIEF). PM Modi also met then Austrian Chancellor Alexander Schallenberg in October 2021, on the sidelines of COP-26 in Glasgow. There have been many ministerial exchange visits between the two countries. Also, the parliamentary delegation has had many exchange visits.
Economic Relations and Bilateral Trade
Total bilateral trade for 2023 (January to December) was $2.93 billion. Indian exports to Austria were $1.52 billion, and imports were $1.41 billion. Key Indian exports included electronic goods, apparel, textiles, footwear, rubber articles, vehicle and railway parts, electrical machinery, and mechanical appliances. India’s imports were machinery, mechanical appliances, railway parts, iron, and steel.
India received a cumulative direct investment of 733 million euros in 2023. Cumulative FDI from India to Austria has reached about 1.159 billion euros in 2023. To foster innovation and entrepreneurship between the countries, the India-Austria Start-up Bridge was launched in February 2024.
There are over 200 collaborations, including 100 technical collaborations and 60 joint ventures between Indian and Austrian firms, particularly in the fields of steel, manufacturing technology, railways, transport, and metallurgy.
Bilateral Agreements and MoUs
Several bilateral agreements (MoUs) have been signed between the two countries at the government and institution levels, providing the framework for wide-ranging cooperation. These include the avoidance of double taxation, cooperation in infrastructure development, railways, the health sector, science and technology, agriculture, shipping and ports, and Ayurveda, among many others.
Austrian Industrial Strengths
Austria has strength in technology in some core sectors, such as biotechnology, the pharmaceutical industry, and medical equipment. Austria plays a crucial role in driving innovative mobility concepts, both as a manufacturer and supplier of vehicle technologies and through innovations in the rail and aviation industries. They have a world-class ecosystem for microelectronics. Austria’s green tech sector is home to market-leading green tech pioneers, from waste management and recycling to industrial production and the circular economy.
The Indian Navy is currently testing the rotary unmanned aerial system (UAS) as part of a deal with Austrian company Schiebel for their renowned Camcopter S-100 ahead of PM Modi’s visit to the country. The UAS will be for ISR in the Indian Ocean Region.
Austria is at the cutting edge of developments in Deep Tech in the fields of artificial intelligence (AI), cyber-security, and quantum technology. Advanced manufacturing is another area of cooperation. Many Austrian industrial companies are leading players in the global market or even world market leaders, such as Andritz AG (industrial plants, equipment, and tooling), Voestalpine AG (steel, automotive, and railway systems), Rosenbauer Group (fire-service vehicles), Miba AG (engine and industrial bearings), Lenzing AG (viscose fibres, filament yarn), and Doppelmayr Group (ropeways and people movers, amusement parks).
Scientific and Cultural Relations
Austria’s first two satellites, TUGSAT-1 and UniBRITE-1, were launched by the Indian Space Research Organisation (ISRO) on-board PSLV-C20 from Satish Dhawan Space Centre, Sriharikota, on February 25, 2013.
Indo-Austrian cultural relations have a long tradition dating back to the 16th century, when Balthasar Springer travelled from Tyrol in 1505 to India along with the third Portuguese fleet. The Austrian tradition of Indology began in a period renowned for its distinguished philologists and archaeologists between 1825 and 1920. Sanskrit began to be taught at the University of Vienna in 1845. A chair for Sanskrit studies was established and later converted into a chair for Indology. In 1955, it transformed again into a separate Institute for South Asian, Tibetan, and Buddhist Studies, whose main focus is Indology.
The visit of India’s philosopher-poet and Nobel Laureate Rabindranath Tagore twice to Vienna in 1921 and 1926 was one of the crucial bridges of cultural and intellectual exchange between India and Austria. Gurudev Rabindranath Tagore’s famous lecture in 1921, ‘The religion of the forest’, portrayed the value of getting closer to nature and learning union and compassion.
There is a lot of interest in contemporary Indian literature and theatre. Ayurveda, the Indian traditional system of medicine, has been widely acknowledged and practiced in Austria. The holistic approach of yoga to health care and wellbeing has led many Austrians to embrace yoga, as testified by the presence of many yoga schools in Vienna and other Austrian cities.
Several Indian artists have performed in Austria. Amjad Ali Khan, Zakir Hussain, Hariprasad Chaurasia, Vishwa Mohan Bhatt, and Anoushka Shankar have performed in Vienna. Conductor Zubin Mehta is associated with the Vienna Philharmonic and has given great performances. More recently, Bollywood films have begun to be screened at major multiplexes in Vienna. Several Bollywood films have been filmed in Austria, given its scenic locales. Growing numbers of Indian tourists visit Austria annually.
Indians in Austria
There are around 32,500 Indians, mostly from Kerala and Punjab, living in Austria. They primarily work in the healthcare sector or are self-employed. The Migration and Mobility Agreement has made work migration easier, improved exchanges between students in India and Austria, including rapid visa processing, especially for journalists and researchers, and created an Austrian-Indian Working Holiday Programme. There are over 450 Indian students pursuing their higher education in Austria.
Significance of the Historic Visit
Austrian Chancellor Nehammer highlighted the significance of the visit, stating, “This visit is a special honour as it marks the first visit by an Indian Prime Minister in over forty years and a significant milestone as we celebrate 75 years of diplomatic relations with India.” Prime Minister Narendra Modi expressed his gratitude and excited anticipation for the visit of Austrian Chancellor Karl Nehammer for his welcoming remarks ahead of Modi’s upcoming state visit to Austria.
PM Modi wrote on X (formerly Twitter): “Thank you, Chancellor @karlnehammer. It is indeed an honour to visit Austria to mark this historic occasion. I look forward to our discussions on strengthening the bonds between our nations and exploring new avenues of cooperation. The shared values of democracy, freedom, and rule of law form the bedrock upon which we will build an ever closer partnership.”
Way Ahead
Industry in Austria is a major economic pillar, often overshadowed by the stereotype of the picturesque Alpine country. With 29.2 percent of the GDP, industry plays a leading role in Austria’s economy, while tourism, although also important, contributes 13.1 percent to the GDP.
India is the world’s fastest-growing major economy. It is a huge market. The India-Austria trade is evenly balanced. India has more direct investment in Austria than the other way around. Indian companies must use their financial muscle to acquire more technology companies. Indians must also explore jobs in high-tech industries. The Migration and Mobility Partnership Agreement would also support this exercise. German is the official language of Austria and an important prerequisite for participating in the working, economic, and social life of the country. This barrier would have to be surmounted.
Vienna, the capital city of Austria, has long been an important centre of musical innovation. Vienna is the European capital of classical music. Wolfgang Amadeus Mozart, Franz Schubert, and Johann Strauss, Jr, among others, were associated with the city. India and Austria must work towards a fusion of classical music.
Austria is home to one of the most prestigious manufacturers of fine-cut crystal. India’s large diamond cutting industry can collaborate. Austria is also famous for world-class chocolates, including the Mirabell Mozart. There is scope for cooperation.
PM Modi’s visit will increase awareness and increase people-to-people contact. There will also be an impetus for trade and technological cooperation.
The writer is former Director General, Centre for Air Power Studies. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.
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