India, Azerbaijan move to reset ties, boost energy investments and connectivity
Delhi and Baku are currently taking steps to improve bilateral relations through enhanced economic cooperation and connectivity initiatives. After a positive meeting, the Foreign Ministers of both nations emphasized the importance of the International North-South Transport Corridor. There has been a notable increase in Indian investment in Azerbaijan's energy sector, with cumulative investments…
India and Azerbaijan are working to mend fractured relations and boost economic cooperation, particularly in the energy sector and connectivity projects. The two nations aim to capitalize on their complementary economies and enhance bilateral trade and investment. A key focus is the International North-South Transport Corridor (INSTC), which connects Mumbai to St. Petersburg via Azerbaijan. Both countries recognize the strategic importance of this transportation route.
Following the recent meeting between Prime Minister Narendra Modi and Azerbaijani President Ilham Aliyev in Bishkek, India's External Affairs Minister S Jaishankar is set to visit Baku. This visit comes after Aliyev's one-day meeting with Jaishankar in Baku, where they discussed expanding bilateral relations, including in trade, investment, and energy. The Foreign Minister highlighted the significant investment from India in Azerbaijan's economy and expressed optimism about further enhancing the relationship.
India-Azerbaijan relations have improved significantly since Armenia and Azerbaijan reached a peace deal, enabling diplomatic ties between Armenia and Pakistan. Both India and Azerbaijan share close ties with Israel, and experts believe the India-Azerbaijan partnership must be considered in this context. The two nations also cooperate on security matters, countering transnational crime together.
During Jaishankar's visit, there was a strong emphasis on increasing Indian investments in Azerbaijan's oil and gas sector, particularly in the Azeri-Chirag-Guneshli (ACG) oil and gas cluster and the Baku-Tbilisi-Ceyhan (BTC) oil pipeline. India's Foreign Direct Investment (FDI) in Azerbaijan has grown substantially, reaching $56.047 million in 2025, a 29.8% increase from 2024. The total Indian investment in Azerbaijan's economy has risen from $480 million in 2016 to $1.26 billion by the end of the first half of 2025.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
