India's Proximity Archives
South Asia
An agreement has been signed between Afghanistan and an Indian enterprise for the modernisation of laboratory and quality-control capabilities at nine of its border ports. The five-year agreement is valued at USD 46 million. The project comprises laboratory equipment suitable for testing and assessing construction materials, electrical apparatus, textiles, leather, and paper-based products. The Taliban authorities stated that the agreement also includes the setup of sophisticated laboratory systems, the refurbishment of current equipment, and training initiatives for Afghan technical personnel, along with assistance in achieving international ISO certification standards.
Southeast Asia
On May 20, Indonesian President Prabowo Subianto addressed a plenary session of the People’s Consultative Assembly (MPR) to present the country’s macroeconomic framework and key fiscal policy principles (KEM-PPKF) for the 2027 state budget. This marked the first time an Indonesian President has personally delivered the KEM-PPKF before Parliament—a responsibility traditionally handled by the finance minister. In his speech, Prabowo underscored the challenges posed by a highly uncertain and turbulent global economy, citing ongoing conflicts in the Middle East as a source of indirect but significant pressure on Indonesia’s economic outlook. He announced that the government is targeting a 2027 fiscal deficit of 1.8% of GDP, a sharp reduction from the finance ministry’s 2026 projection of 2.9%, reflecting adjustments for the economic impact of the Middle East conflict. The inflation target for 2027 was set at 1.5%–3.5%, while economic growth is expected to range between 5.8% and 6.5%. Prabowo also revealed plans for tighter regulation and management of commodity exports, signalling a shift toward greater government oversight in safeguarding Indonesia’s economic resilience.
West Asia
On May 17, U.S. President Donald J. Trump warned Iran that the “clock was ticking” and that Tehran must agree to a nuclear deal with Washington at the earliest. A day later, Trump said that he had cancelled an imminent U.S. strike on Iran because Saudi Arabia, UAE and Qatar had requested a pause in military action while serious negotiations were taking place with Iran. However, tensions in the region continued, as drones launched from Iraq by suspected Iranian-backed militia groups targeted a nuclear plant in UAE. The Emirati government described this as a “terrorist attack” that constitutes an unacceptable act of aggression and a direct threat to the country’s security.
Central Asia
On May 15, the Informal Summit of the Organization of Turkic States (OTS) was held in Turkistan, Kazakhstan under the theme “Artificial Intelligence and Digital Development”. The Summit focused on strengthening cooperation among the Member and Observer States in the fields of digital transformation, innovation, artificial intelligence, connectivity, and sustainable economic development. The Leaders reaffirmed their shared commitment to further deepening solidarity, mutual trust and strategic cooperation within the Turkic World in line with the objectives of the Turkic World Vision-2040. Despite the atmosphere of symbolism and fraternity, the summit exposed clear differences between Ankara’s wide-ranging vision and Astana’s insistence that the organisation should remain a practical cooperation platform. President Kassym-Jomart Tokayev emphasised that the OTS “is neither a geopolitical project nor a military organisation. It is a unique platform aimed at strengthening trade, economic, technological, digital, cultural, and humanitarian cooperation among brotherly nations”.
Indian Ocean Region
Defence Minister Rajnath Singh held a bilateral meeting with Vietnam’s Deputy PM and Defence Minister General Phan Van Giang in Hanoi on May 19, 2026, to review and deepen the growing defence partnership, focusing on maritime security, defence industry collaboration, military training, capacity building, UN peacekeeping, cyber security and regional stability. Both sides stressed the importance of peace, stability and freedom of navigation in the Indo Pacific and agreed to enhance cooperation through regular dialogues, joint exercises and exchanges. They discussed avenues to expand cooperation in areas including military training, defence industry collaboration, maritime security, capacity building, United Nations peacekeeping, cyber security and high-level exchanges. The two Defence Ministers virtually inaugurated Language Lab at the Air Force Officers’ College, Vietnam. The Defence Minister also announced the establishment of an Artificial Intelligence Lab at the Telecommunications University in Nha Trang. Military College of Telecommunications Engineering, India and Telecommunications University, Vietnam, also exchanged an MoU in the field of artificial intelligence and quantum technology, marking another important chapter in the Enhanced Comprehensive Strategic Partnership between the two nations.
