India Cambodia Relations: Trade, Agreements, Recent Developments - UPSC Notes

India and Kingdom of Cambodia work closely across various domains to further enhance their strategic partnership. Kingdom of Cambodia, located in the Southeast Asia / Asia, holds significant influence in global political and security affairs. In 1952 (Formal relations), India and Kingdom of Cambodia commenced diplomatic relations, building a foundation for enduring bilateral cooperation. India and Kingdom of Cambodia maintain a Embassies in New Delhi and Phnom Penh, operating embassies in each others capitals to strengthen diplomatic relations. The significance of India and Kingdom of Cambodia ties is of ASEAN centrality, Act East Policy, Mekong-Ganga Cooperation, highlighted by their defense cooperation, economic collaboration, cultural exchanges, and common objectives in global security. 

• India and Kingdom of Cambodia share a strong collaboration in Trade, investment, defence, culture, capacity building, connectivity including defense, nuclear energy, trade, space, oil and gas, cybersecurity, culture, and education. 
• India and Kingdom of Cambodia have forged important partnerships through agreements in Trade (1981), Cultural Cooperation (2000), Investment Promotion (BIPA) (2000), Air Services (2001), Tourism (2007), Defence Cooperation (2007), Prevention of Human Trafficking (2022), Biodiversity Conservation (2022), Health and Medicine (2022) to foster greater cooperation. 
• Available data shows that India and Kingdom of Cambodia maintain a trade volume of USD 40378 million (2023-24), underscoring their growing trade relationship. 
• India supplies Pharmaceuticals, vehicles, machinery, cotton, meat products, electrical machinery to Kingdom of Cambodia under their strong trade relations, boosting bilateral economic growth and cooperation. 
• India mainly imports Apparel, footwear, electrical machinery, rubber articles, travel goods from Kingdom of Cambodia as part of their regular and long-standing trade ties. 

India’s engagement with Kingdom of Cambodia in ITEC, e-VBAB, ICCR scholarships, IT Centre, capacity building supports digital transformation and academic excellence. Focused on India Cambodia Relations, this article explores Strategic Summits, Diaspora Remittances, and Import-Export Trends to assist candidates in enhancing their GS Paper 2 and PSIR notes. 

India Cambodia Relations Establishment of Diplomatic Ties

The roots of India–Kingdom of Cambodia relations go back to Ancient civilizational links, support during post-conflict period. Historic visits such as Cambodian King Sihanouk (multiple), Indian PM Nehru, President Prasad have helped shape the strategic partnership between India and Kingdom of Cambodia. 

• Diplomatic ties between India and Kingdom of Cambodia have progressed via Ancient links, post-colonial support, recent strategic deepening.

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Strategic & Political Cooperation of India Cambodia Relations

The ASEAN centrality, Act East Policy, Mekong-Ganga Cooperation of India and Kingdom of Cambodia relations often encompasses defense cooperation, economic partnerships, cultural exchanges, and common global security goals. 

• MoU (2007), training, goodwill visits, demining assistance reflects the growing military collaboration between India and Kingdom of Cambodia through joint training, arms trade, and naval support. 
• India supports Shared commitment to combat terrorism and transnational crime with Kingdom of Cambodia by collaborating to prevent terrorism and improve regional security. 
• India’s Potential in IT sector, capacity building in ICT initiatives with Kingdom of Cambodia strengthen digital defense, promote R&D, and support tech-driven growth. 
• Security cooperation between India and Kingdom of Cambodia has grown through UN, ASEAN, MGC, EAS, NAM, helping resolve global issues and drive progress. 
• Through their Exploration in oil and gas, renewable energy potential, India and Kingdom of Cambodia are collaborating on energy efficiency, fossil fuel alternatives, and grid modernization. 
• India and Kingdom of Cambodia are dedicated to advancing Proposed satellite tracking station, ASEAN-India space_cooperation through collaborative research, technological innovation, and joint exploration activities. 
• India and Kingdom of Cambodia have joined hands in sectors like Air Services Agreement (2001), direct flights initiated to encourage seamless connectivity and tourism collaboration. 
• India and Kingdom of Cambodia have engaged in DTAA signed 2016, entered into force January 2018 to streamline cross-border tax regulations and prevent double taxation.

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Trade and Economic Overview of India Cambodia Relations

• To further enhance their partnership, India and Kingdom of Cambodia have secured several agreements, including those in Trade (1981), Cultural Cooperation (2000), Investment Promotion (BIPA) (2000), Air Services (2001), Tourism (2007), Defence Cooperation (2007), Prevention of Human Trafficking (2022), Biodiversity Conservation (2022), Health and Medicine (2022). 
• The bilateral trade between India and Kingdom of Cambodia stands at USD 40378 million (2023-24), reflecting increasing economic interdependence. 
• Investment flows highlight Indian investment in pharma, auto, mining, Cambodia encourages more and include important joint ventures promoting bilateral growth. 
• Formal sessions like India-Cambodia Joint Commission Meeting (JCM), Foreign Office Consultations, organized annually or biennially, aim to review and enhance the trade and investment cooperation. 
• India and Kingdom of Cambodia have introduced a series of Significant LoCs for infrastructure, water resources, power transmission to foster long-term economic prosperity and financial collaboration. 
• The value of goods exported to India by Kingdom of Cambodia totaled USD 18539 million (2023-24). 
• Pharmaceuticals, vehicles, machinery, cotton, meat products, electrical machinery make up a major portion of India’s exports to Kingdom of Cambodia, underlining a robust trade framework. 

USD 28661 million (2023-24) represents the value of Indian exports received by Kingdom of Cambodia. Indian investments in Kingdom of Cambodia are represented by companies like Pharmaceuticals (Cipla, Ranbaxy), automobiles (TVS, Bajaj), mining.

Socio-Cultural & Diaspora Engagement

Both India and Kingdom of Cambodia benefit from the deep-rooted influence of their diaspora, enhancing Business, professionals, restaurants, promoting cultural understanding. Through Temple restoration (Angkor Wat, Ta Prohm), yoga, films, India and the other country share traditions and build friendly relations. By promoting ITEC, ICCR, e-VBAB, English language training, university linkages, India and the partner country are creating more chances for education. 

• In Kingdom of Cambodia, a significant number of students and professionals, totaling around Approximately 5,000 (professionals, businesspersons, restaurateurs), contribute to strengthening cultural, educational, and economic ties. 
• India and Kingdom of Cambodia use Development aid (LoCs, grants), ITEC, cultural restoration to fortify their strategic stance and boost their global influence.

India Cambodia Relations Recent Developments

The diplomatic relationship between India and Kingdom of Cambodia is reinforced by Cambodian King (2023), Cambodian PM (2023 ASEAN-India Summit) aimed at expanding mutual cooperation. MoUs on human trafficking, biodiversity, health (2022) reflect evolving priorities in areas such as financial technology, clean energy, and public services. 

• Temple restoration, water projects, power transmission lines underline key areas of engagement between India and Kingdom of Cambodia. 
• Limited direct trade, need for greater investment awareness are among the key concerns that both nations aim to address through dialogue. 
• India and Kingdom of Cambodia hold promising Strengthening trade, connectivity, defence, cultural and digital cooperation in multiple areas of bilateral cooperation.

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UPSC Relevance of India Cambodia Relations

• UPSC Prelims often asks about MoUs, recent diplomatic events, and bilateral cooperation, making this topic high-yield.
• India–Kingdom of Cambodia relations are integral to GS Paper 2 (International Relations) under bilateral, regional, and global groupings.
• This theme can be integrated into philosophical essays discussing global responsibility, cooperation, and equity.
• History optional students may refer to ancient or colonial connections between India and Kingdom of Cambodia.