India Papua New Guinea Relations: Trade Agreement, Summit, Partnership - UPSC Notes

The longstanding alliance between India and Papua New Guinea is marked by mutual trust and collaborative goals. Situated in the Oceania / Asia-Pacific Located at the convergence of the Indian and Pacific Oceans, acting as a bridge between Asia and the Pacific, Papua New Guinea plays a key role in international geopolitics and security. India established diplomatic ties with Papua New Guinea in Diplomatic relations were established in 1976, following Papua New Guinea's independence in 1975, setting the stage for a lasting and multifaceted partnership. India and Papua New Guinea sustain a India opened its High Commission in Port Moresby in April 1996 Papua New Guinea opened its resident Diplomatic Mission in New Delhi in October 2006, with each country’s embassy in the other’s capital facilitating strategic communication. The relationship between India and Papua New Guinea holds Strategically located Pacific Island Nation, significant for India's 'Act East' Policy and Forum for India-Pacific Islands Cooperation (FIPIC) engagement Rich in natural resources like LNG, minerals, and timber Sits astride important sea lines of communication, with an emphasis on defense collaboration, economic synergy, cultural exchanges, and collective global security efforts. 

• India and Papua New Guinea work together in Development assistance (Lines of credit for infrastructure), capacity building (ITEC program), IT and cybersecurity, health, education, trade and investment, agriculture, disaster relief, and sharing digital public infrastructure (India Stack) such as defense, nuclear energy, trade, space exploration, oil and gas, cybersecurity, culture, and education. 
• In order to deepen bilateral relations, India and Papua New Guinea have committed to agreements in key areas such as MoU on Foreign Office Consultations (2023), MoU on sharing India Stack (2023), Agreement for visa waiver (Diplomatic/Official Passports) (2023), MoU on cooperation in the field of diplomatic training (2019), MoU for establishment of Centre of Excellence in IT (2016), MoU on US$100 million Line of Credit for infrastructural development (2016), MoU on Cooperation in Health Sector (2016), MoU on Agriculture Research Cooperation (2016), Air Services Agreement (2003), Trade Agreement (1999). 
• India and Papua New Guinea have reported a total trade volume of USD 72920 million (2022-23) Some sources show conflicting figures, indicating a positive trend in their economic partnership. 
• India regularly exports Pharmaceuticals (packaged medicaments), machinery and mechanical appliances, textiles, rice, iron and steel articles, food items, surgical items, and other manufactured goods to Papua New Guinea, supporting mutual trade ties and economic collaboration across multiple sectors. 
• India’s imports from Papua New Guinea largely consist of Palm oil, copper ores and concentrates, gold, timber and articles of wood, marine products, nickel, cocoa, coffee, and vanilla, showing consistent trade flows. 

India works closely with Papua New Guinea in Establishment of Centre of Excellence in IT (CEIT) at University of PNG, being upgraded to a Regional IT and Cybersecurity hub Indian Technical and Economic Cooperation (ITEC) scholarships MoU on sharing India Stack to improve learning access and research opportunities. We’ve discussed Role of Diaspora, Cultural Linkages, and Recent Agreements Signed with India Papua New Guinea Relations, which are highly useful for GS Paper 2 and international affairs in PSIR. 

India Papua New Guinea Relations Establishment of Diplomatic Ties

Bilateral ties between India and Papua New Guinea were initiated through Diplomatic relations established in 1976 India's engagement with the region dates back to the colonial period through migration India's High Commission was earlier concurrently accredited from Suva/Kuala Lumpur. Notable high-level visits between India and Papua New Guinea include Indian President Pranab Mukherjee (April 2016) Indian Prime Minister Narendra Modi (May 2023) PNG Prime Minister Peter O'Neill (August 2015 for FIPIC Summit) PNG Prime Minister James Marape has visited India and met PM Modi on sidelines of international events, which significantly advanced bilateral ties. 

• India and Papua New Guinea have built their relationship through phases like Early post-independence ties, increased engagement with resident missions, deepening cooperation under India's 'Act East' Policy and FIPIC mechanism, focusing on development partnership and strategic outreach.

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Strategic & Political Cooperation of India Papua New Guinea Relations

The Strategically located Pacific Island Nation, significant for India's 'Act East' Policy and Forum for India-Pacific Islands Cooperation (FIPIC) engagement Rich in natural resources like LNG, minerals, and timber Sits astride important sea lines of communication of India and Papua New Guinea relations often encompasses defense cooperation, economic partnerships, cultural exchanges, and common global security goals. 

• When India and Papua New Guinea deepened their Naval ship visits (eg, INS Sahyadri and INS Kolkata in August 2023) Training slots for PNG defence personnel Discussions on maritime security PNG appointed its first Defence Adviser to India in 2024, it helped build mutual trust and military confidence. 
• India and Papua New Guinea work together through Cooperation in regional and multilateral forums on counter-terrorism Information sharing and capacity building are areas of engagement, maintaining cooperation by sharing information and tracking terrorist threats. 
• MoU on sharing India Stack (2023) Establishment of a Regional IT and Cybersecurity hub at University of PNG Discussions on digital ID, payments, data protection between India and Papua New Guinea is vital for digital security, technological advancement, and innovation. 
• Through Both countries are members of the Commonwealth, Non-Aligned Movement (NAM), and the United Nations PNG is a key partner in the Forum for India-Pacific Islands Cooperation (FIPIC), India and Papua New Guinea contribute to global peace, multilateral diplomacy, and coordinated policy efforts. 
• India and Papua New Guinea enhance Papua New Guinea has significant reserves of LNG, Indian companies have shown interest in its offshore LNG projects Potential for cooperation in renewable energy through mutual investments in energy infrastructure, clean technologies, and green initiatives. 
• India and Papua New Guinea engage in dynamic collaboration in Past proposals for an ISRO telemetry station Potential for collaboration in space applications and data sharing, including satellite technology and remote sensing, focusing on joint initiatives, knowledge-sharing, and exploration efforts. 
• India and Papua New Guinea have entered into agreements in areas such as Air Services Agreement signed in 2003 Efforts to promote tourism and people-to-people exchanges India extended e-visa facility to PNG nationals to foster improved travel and bilateral engagement. 

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Trade and Economic Overview of India Papua New Guinea Relations

• India and Papua New Guinea have signed a series of agreements in fields like MoU on Foreign Office Consultations (2023), MoU on sharing India Stack (2023), Agreement for visa waiver (Diplomatic/Official Passports) (2023), MoU on cooperation in the field of diplomatic training (2019), MoU for establishment of Centre of Excellence in IT (2016), MoU on US$100 million Line of Credit for infrastructural development (2016), MoU on Cooperation in Health Sector (2016), MoU on Agriculture Research Cooperation (2016), Air Services Agreement (2003), Trade Agreement (1999) to bolster mutual cooperation. 
• India and Papua New Guinea maintain a trade volume of USD 72920 million (2022-23) Some sources show conflicting figures, illustrating their growing economic partnership. 
• Investment flows account for Limited but growing Indian companies have some presence in retail, resources, insurance, and services in PNG PNG offers opportunities in mining, natural gas, and marine exports India is the second-largest buyer of PNG's palm oil, together with significant collaborative ventures between India and the foreign counterpart. 
• Regular meetings like Foreign Office Consultations (first held in December 2022) Joint Trade Committee meetings FIPIC summits provide a platform for economic dialogue Discussions on a potential comprehensive economic partnership, usually taking place annually or every two years, aim to promote and assess the trade and investment relationship between India and its partner country. 
• India and Papua New Guinea have granted several USD 100 million Line of Credit for infrastructural development (signed April 2016, effective June 2019 for specific road projects) Another USD 100 million announced (2019), sometimes referred to as USD 150 million for PSIDS as part of their efforts to drive economic growth and reinforce financial cooperation. 
• Papua New Guinea registered export shipments to India amounting to USD 64336 million (2022-23) according to one Indian government source OEC data and other trade aggregators show varying figures for different periods. 
• Pharmaceuticals (packaged medicaments), machinery and mechanical appliances, textiles, rice, iron and steel articles, food items, surgical items, and other manufactured goods make up a major portion of India’s exports to Papua New Guinea, underlining a robust trade framework. 

India exported products to Papua New Guinea amounting to USD 8584 million (2022-23) according to one Indian government source OEC data suggests USD 457M for Feb 2025. Indian investments in Papua New Guinea are represented by companies like Includes companies in retail (like CPL Group), resources, insurance, services, IT, and technical personnel in mining and hydrocarbons.

Socio-Cultural & Diaspora Engagement

The diaspora of India and Papua New Guinea is a driving force behind the improvement of Contribute significantly to PNG's economy and society as professionals and businesspersons Act as a bridge between the two countries and foster goodwill Mr Sasindran Muthuvel, a PIO, is a Governor and MP, fostering closer relations. India builds strong bonds with its partner country through Translation of Tamil classic 'Thirukkural' into Tok Pisin language (launched May 2023) Performances by cultural troupes, participation in festivals, academic exchanges A bust of Mahatma Gandhi is at the University of PNG MoU for Cultural Exchange Programme mentioned as a deliverable that spread cultural awareness. With ITEC scholarships Establishment of Centre of Excellence in IT at UPNG MoU between ICAR (India) and PNG University of Technology, Lae, for agricultural research Support for ICT infrastructure at UNITEC, Lae Long-term ICCR Chair of Indian Studies at UNITECH, India and the other country are sharing knowledge and learning together. 

• The cultural and economic bond between India and Papua New Guinea is reinforced by the significant presence of the Indian-origin community. 
• India and Papua New Guinea strategically deploy Hard Power: Naval visits, defence training slots, humanitarian assistance and disaster relief (HADR) (earthquake relief, medical supplies, indelible ink) Soft Power: ITEC program, lines of credit for development, cultural exchanges, IT and education cooperation, yoga promotion, provision of digital public goods (India Stack) to bolster their international standing and maximize their global impact.
• The strong ties between India and Papua New Guinea are underpinned by No specific readily available data found on remittances from the indian_diaspora in Papua New Guinea, which have a major impact on economic growth.

India Papua New Guinea Relations Recent Developments

Indian Prime Minister Narendra Modi (May 21-22, 2023) for 3rd FIPIC Summit PNG Prime Minister James Marape met PM Modi (May 2023 in PNG, Feb 2024 in India for Raisina Dialogue) Secretary (East), MEA (December 2022) serve as key milestones in advancing the comprehensive partnership between India and Papua New Guinea. India and Papua New Guinea have recently worked on MoU on sharing INDIA STACK (July 2023, signed, Cabinet approval Oct 2023) Agreement for visa waiver for diplomatic and official passport holders (May 2023) MoU to establish Foreign Office Consultations (May 2023), shaping their diplomatic and sectoral engagements. 

• Upgradation of Centre of Excellence in IT to a Regional IT and Cybersecurity hub Projects under Lines of credit for infrastructure (Baiyer-Madang road, Hoskins-Kimbe road) Continued ITEC training and capacity building Support for ICT infrastructure at University of Technology (UNITEC), Lae underline key areas of engagement between India and Papua New Guinea. 
• Differences over Limited direct air/sea connectivity PNG's internal challenges: law and order, infrastructure gaps, economic vulnerabilities, political volatility, environmental concerns Ensuring effective utilization of development assistance Delays in implementing LoC projects noted in the past highlight the complexity of international engagement. 
• Both nations envision strong Enhanced cooperation in trade, investment (resources, agriculture, IT) Strengthening strategic engagement via Act East Policy and FIPIC Deeper defence/security ties Collaboration on climate change, sustainable development, digital transformation Increased people-to-people and cultural exchanges in strategic, economic, and cultural domains.

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UPSC Relevance of India Papua New Guinea Relations

• Knowledge of India–Papua New Guinea ties aids in answering map-based or factual questions related to international groupings and summits.
• Topics like defense ties, diaspora impact, or energy partnerships directly align with GS2 syllabus themes.
• Diaspora support, humanitarian aid, and cultural diplomacy demonstrate ethical foreign engagement.
• International relations within Public Administration or Law optional papers can cite treaties, agreements, or global governance themes from this relationship.