India-Brunei relations hold significant potential for growth and development, especially in the realm of energy security, regional stability, and multilateral cooperation.
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To reach out to the hitherto untouched corners of Southeast Asia, Prime Minister Narendra Modi paid a two-day bilateral state visit to Brunei—the first Indian PM to do so. The visit assumes added significance since India and Brunei are commemorating 40 years of their bilateral relations this year, which also marks the tenth anniversary of the launch of India’s ‘Act East Policy’.
India-Brunei diplomatic ties, though important, often remain an understated facet of India's Eastward engagement. Modest as it may seem to many, Brunei does play a strategically important role in India's Act East calculus, particularly in the energy and space sectors. It may not seem as prominent as larger ASEAN nations like Malaysia, Singapore, or Indonesia; it is, nonetheless, important for a range of short and long-term reasons. Brunei has the potential to become the ‘second Singapore’ for India in the Southeast Asian region regarding its role in critical sectors, energy, science, and technology, and infrastructure cooperation with India.
Modi's Brunei visit should not be seen as a one-off event. He has been trying to reach out to countries that have thus far not received much attention. Modi’s recent visits to Austria and Poland, for instance, indicate that his outreach efforts are directed towards visiting countries that are important for India, and have the potential to become stronger partners, but have not been visited over the past few decades.
Brunei is one of the strongest economies in the region and is one of the four leading oil-producing countries in Southeast Asia.
Brunei Darussalam, the smallest country in the Southeast Asian region after Singapore, fits perfectly well in that scheme. Despite its size, Brunei is one of the strongest economies in the region and is one of the four leading oil-producing countries in Southeast Asia. It is also the ninth-largest natural gas exporting country in the world. It is important to note that oil and gas contribute to 90 per cent of Brunei’s GDP (Gross Domestic Product).
Energy cooperation, thus, forms the bedrock of India-Brunei relations. For a rising India, world’s third-largest oil-consuming and importing country, it is important to ensure that it does not remain dependent on a handful of countries for its energy needs. Brunei’s role as a reliable exporter of hydrocarbons aligns well with Delhi’s strategic goal of diversifying its energy portfolio and reducing excessive dependence on Russian and West Asian supplies.
Greater energy cooperation between the two countries will also be cost-effective due to their relative geographic proximity in comparison to Russia and West Asia. Given India’s expertise in refining and downstream processes, deeper collaboration in energy infrastructure development in Brunei has good scope. Indian companies, such as ONGC Videsh Limited (OVL) and Gas Authority of India Limited (GAIL), have expressed interest in Brunei’s oil and gas sectors, reflecting the greater energy cooperation potential. Considering that India is yet to become one of the top five oil and natural gas importing countries from Brunei, there is significant scope for cooperation in this sector. India accounts for less than 12 per cent of Bruneian hydrocarbon exports.
A logical extension of this cooperation thus would be the safety and security of sea lanes of communication between India and Brunei, which has overlapping territorial claims with China though it prefers to remain silent on the dispute.
India has consistently advocated for a rules-based international order and peaceful resolution of disputes in the South China Sea, which aligns with Brunei's position.
As India’s energy cooperation with Brunei grows further, it would lead to greater Indian presence in those waters, motivated by its economic and energy interests. India has consistently advocated for a rules-based international order and peaceful resolution of disputes in the South China Sea, which aligns with Brunei's position. The joint statement on an Enhanced Partnership between the two countries reiterated their commitment to “maintaining and promoting peace, stability, maritime safety and security, as well as respecting freedom of navigation and overflight and unimpeded lawful commerce, consistent with international law, notably the United Nations Convention on the Law of the Sea (UNCLOS) 1982.”
The other equally important pillar in India-Brunei ties is the space sector. The Indian Space Research Organisation (ISRO) established its Telemetry Tracking and Telecommand (TTC) Station in Brunei in the year 2000, which tracks and monitors all eastward-bound satellites and satellite launch vehicles. Cooperation in this critical sector is enabled by long-standing MoU between the two governments.
Located on the island of Borneo, Brunei’s Equatorial location makes it a very suitable site for geostationary satellite launches, ground stations and space monitoring infrastructure. It not only makes communication with satellites easier, facilitating more accurate tracking, data reception, and control but can also become a cost-effective launch site as it would consume less fuel. As a major space power, with a long-term vision in the Indo-Pacific, India should collaborate with Brunei in developing the latter as a spaceport as well.
While trade between the two countries remains relatively modest at US$ 195.2 million (in 2023), compared to India's trade with other ASEAN nations, it has grown steadily in recent years. The two countries need to diversify trade and investment into new sectors, including infrastructure, information technology, the hospitality industry, tourism, and pharmaceuticals. India-Brunei trade is governed through the ASEAN-India Free Trade Agreement (AIFTA) which is currently undergoing a review after its implementation a decade-and-a-half ago.
India-Brunei trade is governed through the ASEAN-India Free Trade Agreement (AIFTA) which is currently undergoing a review after its implementation a decade-and-a-half ago.
Brunei is a critical part of India's broader engagement with Southeast Asia on both multilateral and bilateral pillars. India's relationship with ASEAN is key to its Look/Act East Policy, and Brunei’s membership ensures it is part of the regional diplomatic, economic, and security dialogues India seeks to deepen. In 1992, when India started its deeper region-wide bilateral and multilateral engagement with Southeast Asia, Brunei was at the forefront. His Majesty Sultan Haji Hassanal Bolkiah undertook his first State Visit to India from 5-18 September 1992, when the then Prime Minister P.V. Narasimha Rao launched the Look East policy. Brunei was also the coordinating country for India in the ASEAN region between 2012 and 2015.
As a member of ASEAN, Brunei has played an important role in India’s institutional engagement with ASEAN. Brunei’s role as an ASEAN member allows India to engage with the country both bilaterally and through ASEAN-led frameworks Such engagements enable India to expand its influence in Southeast Asia and contribute to the region's economic development and security.
India and Brunei share deep historical and cultural links, dating back to ancient maritime trade routes. Indian traders, particularly from the southern parts of India, frequented the Malay Archipelago and other parts of Southeast Asia, influencing the region’s culture, language, and religious practices. Today, Brunei has become a role model of a moderate and tolerant Islamic community, which is worth emulating by several countries in Asia including India.
The tiny Indian expatriate community, comprising professionals in fields such as education, healthcare, and business, serves as a bridge between the two cultures.
The decision to start a direct flight between Bandar Seri Begawan and Chennai would further facilitate greater two-way movement of people, thereby facilitating greater cooperation in trade, tourism, education, and cultural sectors.
Education is another area where India and Brunei have significant potential for collaboration. Bruneian students are increasingly seeking higher education opportunities in Indian universities, particularly in fields such as engineering, medicine, and information technology. Through its fellowship offers, India has positioned itself as an emerging hub for tertiary higher education sources. India's India’s IT sector offers prospects for bilateral collaboration Brunei in fields such as digital infrastructure and capacity-building programmes. The decision to start a direct flight between Bandar Seri Begawan and Chennai would further facilitate greater two-way movement of people, thereby facilitating greater cooperation in trade, tourism, education, and cultural sectors.
India and Brunei have begun to explore opportunities for defence cooperation, including joint training exercises, capacity-building programs, and exchanges between military personnel. India has offered training to Bruneian defence forces in areas such as maritime security and disaster relief operations, highlighting the growing security dimension of their relationship.
India has offered training to Bruneian defence forces in areas such as maritime security and disaster relief operations, highlighting the growing security dimension of their relationship.
As part of its broader outreach in Southeast Asia, India has also sought to enhance maritime cooperation with Brunei, particularly in areas such as counter-piracy operations and anti-terrorism efforts. As India aspires to become a major defence exporter in the region, there are strong opportunities with Brunei. Maritime cooperation and defence engagements with other countries of maritime Southeast Asia viz., Indonesia, Malaysia, Singapore, and the Philippines, have already been moved to higher levels in terms of cooperation agenda. As a small state with many security vulnerabilities, Brunei can become a good import partner. India’s current basket of export items can meet Brunei’s requirements well.
Despite the positive trajectory of India-Brunei relations, several challenges remain. A major obstacle to deeper economic engagement is the limited diversification of Brunei's economy. Given its heavy reliance on the oil and gas sector, Brunei's economic stability is vulnerable to fluctuations in global energy prices. This makes it imperative for both nations to explore new areas of cooperation beyond energy, including sectors such as tourism, education, healthcare, infrastructure, and technology.
Another challenge is a rather small size of Brunei's market, which limits the scope of trade expansion. However, India’s growing economic presence in the ASEAN region provides opportunities for Brunei to tap into larger regional markets by partnering with Indian companies in various sectors. Following the Singapore model, India should invite Brunei to invest in the Indian infrastructure sector especially in port development, hospitality and tourism sectors, thereby making Brunei a partner in India's SAGAR and incredible India campaigns.
India-Brunei relations, though often overshadowed by India's larger engagements with other ASEAN nations, hold significant potential for growth and development. Brunei may seem a smaller player in Southeast Asia but its significance for India spans across energy security, regional stability, and multilateral cooperation.
Modi’s timely visit to Bander Seri Begawan sets the stage for greater cooperation to optimally realise India’s Act East plans.
Rahul Mishra is a Senior Research Fellow, German-Southeast Asian Centre of Excellence for Public Policy and Good Governance, Thammasat University, Thailand and Associate Professor, Centre for Indo-Pacific Studies, Jawaharlal Nehru University, New Delhi.
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Dr. Rahul Mishra is a Senior Research Fellow, the German-Southeast Asian Centre of Excellence for Public Policy and Good Governance, Thammasat University, Thailand and Associate ...
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