India Rebuilds Ties with Azerbaijan Amid Energy and INSTC Push — SkimNews
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- S. Jaishankar held talks with Azerbaijani President Ilham Aliyev and Foreign Minister Jeyhun Bayramov on October 23, marking the first standalone visit by an Indian external affairs minister since 2018 and signaling a diplomatic thaw.
- India and Azerbaijan agreed to deepen cooperation in oil and energy, expand trade and investment, and strengthen political consultations, though no formal agreements were signed during the visit.
- Jaishankar raised the issue of cross-border terrorism during talks, directly linking India’s security concerns with Pakistan to bilateral discussions despite Baku’s close ties with Islamabad.
- Bilateral trade between India and Azerbaijan dropped from $1.882 billion in 2022 to $400 million in 2025, but reached $600 million in the first nine months of 2026, indicating a rebound in economic engagement.
- Azerbaijan resumed crude oil exports to India in September 2025 after a 10-month pause due to pricing disputes, restoring a key energy supply channel for New Delhi.
- India’s de-hyphenation policy is enabled by the August 2025 U.S.-brokered peace agreement between Azerbaijan and Armenia, allowing New Delhi to engage Baku without jeopardizing its defense partnership with Yerevan.
- New Delhi sees Azerbaijan as critical to advancing the International North South Transport Corridor (INSTC), with Baku agreeing to closer coordination on the Western Route of the project.
Why it matters: India gains strategic leverage in the South Caucasus by decoupling its ties with Azerbaijan from the Armenia conflict, securing energy flows and transport alternatives amid global supply risks; however, progress hinges on Baku moderating its pro-Pakistan stance in forums like the OIC, where it will host the 2027 summit.
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