Mentor’s Comment: The Indian Ocean Rim Association (IORA) held its Council of Ministers (COM) meeting in Colombo on October 11, 2024, with the theme “Reinforcing Indian Ocean Identity.” Foreign ministers and senior officials from its 23 member countries attended the event. In 2024, many other countries, especially “dialogue partners” or those wanting to join as dialogue partners, showed great interest in the organization. IORA, founded 26 years ago, is believed to have been an idea originally proposed by former South African President Nelson Mandela.

Today’s editorial discusses issues related to the Indian Ocean Rim Association (IORA) and India’s role in it, which is useful for GS Paper 2 in International Relations.

_

Let’s learn!

Why in the News?

New Delhi should create a strong base for effective governance that works at the local level and brings real impact.

What are the key priorities for India as it prepares to chair the Indian Ocean Rim Association (IORA)?

• Enhancing Funding Opportunities: India can engage private sector players like shipping companies (Maersk, Adani Ports), oil & gas firms (ONGC, Reliance), and marine tourism operators to contribute financially to IORA’s initiatives.
• Strengthening Maritime Security & Safety: Expanding India’s Information Fusion Centre – Indian Ocean Region (IFC-IOR) in Gurugram to enhance real-time maritime surveillance and counter threats like piracy, illegal fishing, and trafficking.
• Integrating Technology for Data Management & Policy Analysis: Promoting AI-driven marine data analytics to track ocean health, predict climate change impacts, and improve fisheries management across IORA nations.
• Developing Maritime Education & Skill-Based Training: Partnering with institutions like IIT-Madras and NIOT (National Institute of Ocean Technology) to create specialized courses in marine economy, deep-sea exploration, and coastal governance.
• Strengthening Blue Economy & Sustainable Practices: Collaborating with Australia for marine research, UAE for investment in sustainable fisheries, and Seychelles for traditional knowledge on marine conservation to develop eco-friendly economic growth models.

Why is funding a major challenge for IORA? 

• Dependence on Member Contributions: IORA’s budget is primarily dependent on contributions from its 23 member states, most of which are developing economies. For example, Only a few countries like Singapore, UAE, and France have the financial capability to contribute significantly, while others struggle to meet commitments.
• Limited Private Sector Involvement: IORA lacks strong partnerships with private enterprises, which could provide alternative funding sources. For example, Industries related to shipping, oil & gas, fisheries, and marine tourism are key players in the region but are not formally involved in IORA’s funding model.
• Comparatively Small Budget: IORA’s total annual budget is just a few million dollars, making it insufficient for large-scale maritime security, climate resilience, and economic development projects. For example, The Indian Ocean Commission (IOC), despite having only five members, has a $1.3 billion budget (2020-25)—significantly larger than IORA’s budget.
• Expanding Scope of Activities: IORA is expanding into maritime safety, disaster management, technology, and blue economy initiatives, all of which require resource-intensive investments. For example, Implementing maritime surveillance systems and disaster risk management programs demands consistent funding, which is currently lacking.
• Lack of a Dedicated Fundraising Mechanism: Unlike organizations like the ASEAN Development Fund, IORA does not have a structured mechanism to raise funds through external donors, financial institutions, or international aid agencies. For example, ASEAN collaborates with ADB (Asian Development Bank) and the World Bank for project funding, while IORA lacks such institutional financial backing.

How can it be addressed?

• Diversifying Funding Sources: IORA should explore alternative funding mechanisms such as public-private partnerships (PPPs), external grants, and contributions from international financial institutions. Example: ASEAN collaborates with the Asian Development Bank (ADB) and the World Bank for project funding, which IORA can emulate.
• Enhancing Private Sector Engagement: Establish formal partnerships with shipping, energy, fisheries, and tourism industries to attract investment in key maritime projects. Example: Creating an IORA Business Forum to facilitate corporate sponsorships and private sector-driven development projects.
• Setting Up a Dedicated IORA Development Fund: Establish a structured IORA Development Fund where member states, international donors, and regional banks contribute for long-term sustainability. Example: The ASEAN Development Fund (ADF) pools resources for regional projects, which IORA can replicate to support blue economy and maritime security initiatives.
• Strengthening Bilateral and Multilateral Cooperation: Strengthen financial partnerships with G20 economies, UN agencies, and regional economic blocs to access technical and financial assistance. Example: IORA can seek support from India’s Development Partnership Administration (DPA) or Japan’s Official Development Assistance (ODA) for infrastructure and capacity-building programs.
• Implementing a Tiered Membership Contribution Model: Introduce a differentiated contribution system where larger economies contribute more while smaller nations have flexible or in-kind contributions. Example: Organizations like the International Maritime Organization (IMO) use GDP-based contribution tiers to ensure fair burden-sharing among members.

India’s Role in IORA – Timeline of Key Initiatives

How does the Indian Ocean Region contribute to global trade and economic activities?

• Major Trade and Energy Corridor: The Indian Ocean facilitates 75% of global maritime trade and 50% of daily oil consumption, making it a critical route for global commerce. The Strait of Malacca, Bab-el-Mandeb, and the Strait of Hormuz are key chokepoints for oil and goods transportation.
• Rich Blue Economy and Marine Resources: The region generates $1 trillion in goods and services, including fisheries, aquaculture, and seabed resources. India, Indonesia, and Thailand have thriving fishing industries, while Mozambique and Madagascar are rich in offshore gas reserves.
• Strategic Economic Hubs and Ports: Major ports like Singapore, Mumbai, Colombo, and Dubai serve as global transhipment and logistics hubs, driving regional and global trade. Gwadar (Pakistan) and Hambantota (Sri Lanka) are being developed as part of strategic maritime infrastructure projects.

Where can India leverage its strengths and partnerships to enhance IORA’s governance and effectiveness?

• Maritime Security and Disaster Resilience: India can take the lead in strengthening maritime surveillance, anti-piracy measures, and disaster preparedness in the Indian Ocean region. Example: India’s Information Fusion Centre – Indian Ocean Region (IFC-IOR) can be expanded to assist IORA members in real-time maritime domain awareness.
• Capacity Building and Skill Development: India can offer training programs, scholarships, and technical assistance to IORA members in areas like blue economy, digital governance, and climate adaptation. Example: The Indian Technical and Economic Cooperation (ITEC) program can be expanded to provide skill development for professionals from IORA nations.
• Sustainable Blue Economy Initiatives: India can collaborate with IORA countries to promote marine biotechnology, sustainable fisheries, and ocean-based renewable energy. Example: India’s Deep Ocean Mission and expertise in offshore wind energy can be shared with IORA nations for sustainable development.
• Trade and Connectivity Infrastructure: India can enhance regional trade and connectivity through port modernization, maritime logistics, and blue economy-driven trade facilitation. Example: The Sagarmala Project can be leveraged to assist IORA nations in upgrading port infrastructure and coastal shipping networks.
• Multilateral Partnerships and Development Finance: India can work with Quad, G20, BRICS, and ASEAN to secure additional funding and policy coordination for IORA’s initiatives. Example: India’s leadership in the Coalition for Disaster Resilient Infrastructure (CDRI) can be extended to help IORA nations build climate-resilient maritime infrastructure.

Way forward: 

• Institutional Strengthening & Financial Sustainability: IORA should establish a dedicated development fund, diversify revenue streams through public-private partnerships, and enhance cooperation with global financial institutions like the World Bank and ADB to ensure long-term financial stability.
• Strategic & Inclusive Engagement:  India must promote technology-driven governance, capacity-building initiatives, and regional connectivity projects while fostering multilateral partnerships with ASEAN, Quad, and BRICS to enhance IORA’s strategic relevance and effectiveness.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now