Baltic States

The Baltic states include Estonia, Latvia, and Lithuania which are located on the eastern shores of the Baltic Sea. They are bordered by Russia, Belarus, Poland, and an exclave of Russia. In 1991, their governments declared independence from the USSR. The region is not rich in natural resources, but agriculture remains crucial, with potatoes, cereal grains, fodder crops, dairy cattle, and pigs produced. India and the Baltic countries share historical and linguistic connections, and the Baltic countries' cutting-edge technology and innovation ecosystems complement India's market and appetite for these technologies.

The autonomous Baltic countries have had various regional and imperial ties throughout their history. The Russian Empire expanded in the 18th century, incorporating Estonia, Latvia, and Lithuania into the same political entity. After the Great Northern War in 1721, Sweden gave Estonia and most of Latvia to the Russian Empire. After the Third Partition of Poland in 1795, the Russian Empire absorbed Lithuania. Estonia, Latvia, and Lithuania gained independence in 1918, but remained under Russian rule until World War II. The Soviet Union invaded, seized, and annexed all three countries in 1940. After Nazi Germany invaded Lithuania, Latvia, and Estonia in 1941, the Red Army invaded again in 1944-1945, regaining sovereignty until 1991. The Soviet occupation ended in 1989 when the newly elected parliaments declared it unconstitutional, leading to the full restoration of the three countries' independence in August 1991.

The Baltic states, consisting of Estonia, Latvia, and Lithuania, are located in northeastern Europe on the eastern shores of the Baltic Sea. They became independent in 1990s and have been EU members since 2004.

• The three nations are all members of the European Union, the Eurozone, and the OECD, having joined NATO in 2004.
• The Russian ruble was abandoned by Estonia, Latvia, and Lithuania in favor of new national currencies, the kroon, lats, and litas, respectively.
• The euro was embraced as the common currency by Estonia, Latvia, and Lithuania in 2011, 2014, and 2015, respectively.

India has a long-standing diplomatic relationship with Estonia, which was established on 2nd December 1991. The Embassy of India in Helsinki is accredited to Estonia, while Estonia opened its Embassy in New Delhi in 2012. In December 2020, a resident mission was opened in Tallinn, Estonia. The Vice President of India visited Estonia in August 2019, the first high-level visit since diplomatic relations were established. He met all high ranking dignitaries including the Head of State President Ms Kersti Kaljulaid.

Major Agreement between India- Estonia: Range in fields of Trade, Economics, Tech etc.

• In 1993 series of important agreements were signed including
  • Declaration of Principles of Cooperation, 1993
  • Agreement on Trade and Economic Cooperation
  • Agreement on Economic and Technical Cooperation
  • Agreement on Cooperation in Culture, Education, Science, Sports, Arts, Mass Media, Tourism and Youth Affairs
• Later, many agreements were signed with significance for taxation, technology, security and training-
  • Agreement on Cooperation in Science & Technology, 1999
  • Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion (DTAA), 2011.
  • MOU on Cooperation in Biotechnologyand Higher Education, 2013
  • Agreement on Transfer of Sentenced Persons, 2016
  • MOU for Cooperation in e-Governance and emerging digital technologies August 2019
  • MOU for Cooperation in Cyber Security, 2019
  • MOU for Waiver of Visas for diplomatic passport, 2019

Other relation between in India- Estonia :

• Commercial relation: India and Estonia have significant potential for increased economic engagement in areas like information technology, cyber security, e-governance, and blockchain. The two countries' bilateral trade reached $140.87 billion in 2017-18, $164.32 billion in 2018-2019, and $119.54 billion in 2019-20.
• Major items of export to Estonia: Machinery and equipment, garments, knitwear, iron & Steel articles of leather; saddles and harness, travel goods, handbags, coffee, tea, spices, footwear and pharmaceutical products.
• Major Estonian exports to India: Iron and steel, fertilizers, electrical machinery, paper and paperboard; paper pulp, veneer etc.
• Trade in Services: The Bank of Estonia reported a significant trade in services in 2016-2019, with Estonia exporting services worth 9.9 million euros to India and importing services worth 7.5 million euros to Estonia.
• Foreign Trade Agreement: In December 2018, the Bank of Estonia reported a value of 4.89 for Indian Foreign Direct Investment (FDI), primarily in manufacturing, construction, wholesale trade, transportation, accommodation, food service, information and communication, real estate, human health and social work.
• India Estonia Business Forum: An Indian business delegation, including the Vice President, attended the India-Estonia Business Forum on August 21, 2019, where they engaged in B2B talks with 30 Estonian companies, with Prime Minister and Vice President Jüri Ratas speaking.
• e-Residency and Start-up Visa: Estonia introduced e-Residency Programs in 2014, enabling non-Estonians to access banking, taxes, company formation, and payment processing using smart cards. Over 3000 Indians established nearly 700 enterprises, and Estonia offers a Start-up Visa, ranking India among top three startups in 2019.
  • India is the primary applicant for Startup Visa, a program overseen by Startup Estonia and the Estonian Ministry of the Interior, allowing Indian entrepreneurs with successful tech-based business plans to apply. With e-Resident status, around 3000 Indians can now open independent businesses in Estonia.
• Cultural Relations: In Estonia, there is a great interest in Indian culture. Sanskrit instruction at the University of Tartu started in 1837. There have been several publications on Sanskrit literature and language. Several well-known Indian musicians and dancers have performed in Estonia in recent years.
• Estonia's e-tourist visa program in 2015 has boosted travel, attracting Indian classical dancers to Tallinn's "Amrita" dance school, yoga and meditation centers run by locals, and a number of Indian spiritual figures' centers in Estonia.
• Indian Community: Estonia has 1,167 Indians, 720 residents, 447 PIOs, 257 students in science and engineering, and professionals in business and hospitality industries, with 720 in residents.

India and Latvia have warm and friendly relations that are expanding steadily.
Investment , Technology and trade linkage between India- Latvia

• In 2021-22, Latvia's trade with India increased by 76%, with major exports being plastics, rubber, base metals, textiles, chemical and allied industries, and vegetables.
• Major imports from Latvia include base metals, machinery, electrical equipment, wood, optical instruments, clocks, watches, and musical instruments.

Bilateral Institutional Cooperation Mechanism: India and Latvia hold regular foreign office consultation, with the 7th round held in Riga in March 2019. The next round was scheduled for November 2022.

• Agreements on cooperation have been signed in various fields, including Economic & Technical Cooperation, Culture, Arts, Education, Science, Mass Media and Sports, Air Services, Commission on Trade, Economic, S&T & Culture, Cultural Exchange Programme, Bilateral Investment Protection Agreement, Health, Avoidance of Double Taxation and Tax Evasion, Cultural Exchange, and Chambers of Commerce.

Academic and Cultural relation:

• University of Latvia established as a center of India Studies and culture in 2013 for Yoga and Hindi.
• Ayurveda course in introduction Ayurveda conducted in collaboration with Arya Vaidya Pharmacy, Coimbatore since 2015.
• The establishment of the Ayurveda Chair’s in Latvia in 2018 at Riga.
• MoU signed on Ayurvedic management of type 2 diabetes between Central Council for Research in Ayurvedic Sciences (CCRAS) Ministry of Ayush and University of Latvia and Arya Vaidya Pharmacy, Baltics SIA Latvia.
• Center for Baltic studies opened at Dev Sanskriti Vishwa Vidyalaya in Haridwar in 2016.
• The Indian origin population in Latvia is estimated to be around 3,000, with nearly 2,000 Indian students studying medicine and engineering.
• Mahatma Gandhi’s bust was unveiled at the national library in 2019.

India recognized Lithuania in 1991 after accepting its independence from the USSR. Diplomatic relations were established with Lithuania in 1992. Lithuania opened its embassy in News Delhi in 2008 and an Indian mission in vilnius is under consideration.
Historical & Cultural Relations: -

• Lithuania and Sanskrit language share a close linguistic similarity, with Lithuania being the Indo-European language closest to Sanskrit.
• Lithuanian people worship nature and had a trinity of gods before the 13th century conversion to christianity.
• Lithuanian philosopher Vydunas Storost, also known as Mahatma Gandhi of Lithuania, was interested in Indian philosophy and created his own philosophy system based on Vedanta. He Argued that Lithuanian spiritual culture had similarity with Hinduism, including the concept of trinity.

Bilateral Agreement: India and Lithuania have signed various agreements for technical, trade and economic cooperation, bilateral consultations, for air services, cooperation in the fields of culture, science, and education, boosting investment and DTAA. These show the range of cooperation is wide.

• Signed in March 2011 during MOS(PK)'s visit to Lithuania, the Bilateral Investment Promotion and Protection Agreement (BIPA).
• On July 26, 2011, in New Delhi, the Agreement on Avoidance of Double Taxation (DTAA) was signed.

Commercial Relations: Lithuania and India have a robust trade relationship. The Indo-Baltic Chamber of Commerce was established in 2009, and an India-Lithuanian Forum was inaugurated in 2010.Cultural Relations:

• Vilnius University has been studying Indian languages, particularly Hindi and Sanskrit, for decades. In 1996, a separate center was established.
• Lithuanians have a strong interest in Indian cultural traditions, including Yoga, and over 70% of visitors have spiritual and yogic interests.
• In 2011, the International Council for Cultural Relations established the first long-term Chair of Indian Studies in the Baltic States.
• ITEC: Since 1993, over 240 Lithuanian nominees have attended various courses under the Indian Technical and Economic Co-operation Programme (ITEC), with all 65 slots used during 2013-14. Lithuanian leadership has expressed appreciation for the ITEC programme.

Indian Community: Around 300 Indians, including students, have been visiting Lithuania for IT projects in recent years. Some Indians work at the USD 200 million PET plant of Indorama Group in Klaipeda. The Embassy of India in Warsaw issues over 20,000 visas annually.

• Vice Presidential Visit to Baltic States in 2019 led to a lot of important agreements.
• India Nordic-Baltic Business Conclave Highlights: The second edition was conducted by the Ministry of External Affairs and the Confederation of Indian Industry (CII).
  • Investment in ports, renewable energy, food processing, and fisheries infrastructure is requested from Nordic and Baltic nations.
  • In 2022–2023, India's total trade with the NB8 nations was USD 7.3 billion.
  • Since 2000, the Nordic nations have contributed a total of USD 4.69 billion in FDI.
  • India's economic growth has been over 7% for several years, with an expected US $5 trillion economy by 2025, according to an India-Estonia Business Forum address.

The Nordic states' partnership with India presents a substantial opportunity for sustainable development and economic growth. Both nations uphold international rules-based systems and democratic principles. The Baltic nations are categorized by the World Bank as having high-income economies and high Human Development Index scores. In the areas of military, energy, transportation, and foreign and security policy, intergovernmental and parliamentary cooperation is typical.

Estonia's IT capabilities and innovative environment present potential for technology partnerships between India and Estonian companies in IT, cybersecurity, and related domains. The e-residency scheme, which allowed 2200 Indians to become e-residents, could serve as a launch pad for Indian companies and entrepreneurs to enter Baltic, Nordic, and European markets.