India’s Triangular Cooperation Strategies – Not a One-size-fits-all Model

Triangular cooperation involves partnerships driven by the needs of Global South countries, aimed at implementing developmental solutions that are appropriate for local contexts. As defined by the United Nations (UN), this modality occurs via a facilitator, usually a Western country or multilateral agency working with a pivotal partner, an emerging economy for solutions in a third Global South country. While, triangular cooperation is not new to India, before 2014, efforts were scattered and not programmatic.

Over the past decade India has signed long-term triangular agreements on specific priority areas. These areas mainly include clean energy, health, disaster risk management, technology, innovation, food security and women’s empowerment. India’s engagement in triangular cooperation, a mechanism that it was once reluctant to partner in, aligns with India’s growing interest in increasing its economic and developmental footprint in the Global South. Further, India has been heralded as an effective bridge between Global North countries and a developing world that is becoming increasingly distrustful of current structures of Western-dominated international institutions.

India has been heralded as an effective bridge between Global North countries and a developing world that is becoming increasingly distrustful of current structures of Western-dominated international institutions.

For instance, the Indo-France Indo-Pacific Roadmap signed in 2023, mentions cooperation towards ‘a free, open, inclusive, secure and peaceful Indo-Pacific Region’. They add that the efforts will be taken to ‘build a balanced and stable order in the region’. As India evolves into an emerging economy, traditional partner countries have recognised that to continue meaningful engagement, they need to go beyond traditional donor-recipient relationships. Economic expansion into countries in the Global South, regional security and developing appropriate, low-cost solutions to address sustainable goals may best be facilitated through triangular coordination.

India has announced or signed triangular agreements with Japan, France, Germany, the United States of America (USA), the United Kingdom (UK) and the United Nations Development Programme (UNDP).

India’s triangular agreements, appear to be based on a strategy of strengthening relationships with countries and multilaterals that India has a history of bilateral cooperation with. Not all triangular agreements look similar or have met the same degree of speed and success.

India’s triangular agreements, appear to be based on a strategy of strengthening relationships with countries and multilaterals that India has a history of bilateral cooperation with. Not all triangular agreements look similar or have met the same degree of speed and success. In the case of Japan, the Asia Africa Growth Corridor (AAGC) is dormant, with no present talk of revival. Unlike with other partners, the focus was primarily based on economic diplomacy, rather than meeting developmental objectives. However, businesses were risk averse to invest under this scheme because there was no concrete plan of action. Further, the agreement was broad-based covering a range of sectors, without a clear understanding of how to approach such projects, and access local entrepreneurships or businesses. The UK and French agreements, while still active are slow to operationalise. This is because they involve the creation of a joint triangular fund, with contributions from both countries to scale-up business innovation in a third country. Creating the financial mechanisms required for both countries to jointly fund and select projects is proving to be time-consuming as India’s Ministry of External Affairs is not a funding agency. After much deliberation, a triangular fund has been set up within the State Bank of India Capital Markets Limited (SBICAPS) investment bank. Projects which have been successful are small-scale developmental pilots and capacity building exchanges as seen with Germany, UNDP and the US. Investments are often lower than USD 1 million, with a grass-root, community focus. These projects are easier to carry out as they do not require infrastructure or investments norms and regulation that meet both country standards, as needed for large-scale projects.

Analysing the regions with completed projects (Table 1), shows a diverse set of recipient countries. The focus appears to be on least developed countries (LDCs) and small island developing countries (SIDs). With the UNDP, India has had a broader geographic scope ranging from Latin America and the Caribbean, Africa and the Pacific Islands. A few projects have also been implemented in South-East Asia. It is interesting to note an absence of triangular projects in India’s immediate neighbourhood.

Table 1: Triangular Partnerships where projects have been completed

Source: Based on author’s compilation

The regions that India has chosen as recipient countries provide an insight into India’s strategy for triangular engagement.

As the country tries to build up its portfolio as a developmental partner, it is expanding its footprint in regions and countries where it does not have a strong diplomatic presence. This is both in terms of physical missions, and development cooperation experience.

As the country tries to build up its portfolio as a developmental partner, it is expanding its footprint in regions and countries where it does not have a strong diplomatic presence. This is both in terms of physical missions, and development cooperation experience. Leveraging on partners which already have networks in these regions, India is able to reach regions where it would not have been able to do on its own. India is not using triangular cooperation to engage the immediate neighbourhood. In fact, officials state that they prefer to bilaterally engage with South Asian countries, as they don’t want to impact established channels of diplomacy.

India must see triangular cooperation as means to an end, of learning to strengthen its domestic cooperation capacity and strategy.

India’s new avatar of triangular agreements sees differences compared to previous projects. The agreements are programmatic and long-term, with specific areas of focus. India does not merely play the role of carrying out a project in a third country on behalf of the facilitating partner. Rather, India is seen as an equal partner, carving out the agenda for cooperation. India is leveraging such agreements to further its strategic interests of expanding its diplomatic footprint in the Global South, showcasing its innovations and creating economic opportunities. On a cautious note, projects remain quite small-scale, and this modality is still at an experimental stage.  The extent to which India and its partners can create norms, standards and institutional mechanisms to work with each other and whether this modality can be scaled-up remains to be seen. Nevertheless, whatever the outcome, India must see triangular cooperation as means to an end, of learning to strengthen its domestic cooperation capacity and strategy.