Indian workers traditionally travel to Gulf countries for employment prospects, but in the last few years, they have been heading to the Caucasus. According to media reports, between 20,000 and 30,000 Indians are in Armenia, working in various occupations such as construction, agriculture, and services. In 2018, the Armenian Minister of Economy, Vahan Kerobyan, confirmed it while addressing the local media.
Attractive Labour Destination
Armenia’s economy has grown recently, making it an attractive destination for Indian workers. Reasons for Indians to travel to Armenia reportedly are better wages and relatively stronger currency value, the dram, Armenian currency, against the Indian rupee.
Indian migrants are reshaping Armenia’s labour market, according to a report by EurasiaNet. While the exact number of Indian migrants may vary, the State Statistics Committee (Armstat) reports in 2023, a total of 54,582 Indian citizens entered Armenia – an increase from 21,591 from the previous year. The data also explains that most Indians in the country are tourists. However, experts indicate that many migrants do not register for residency or formal right to work in the country. Thus, many go unnoticed, and it is difficult to differentiate between the tourists and labourers.
Demographic Change
While Indians are joining the Armenian workforce at a lower wage, reports suggest that some are exploited and abused by their local employers in Armenia. There is also news about abuse from recruitment agencies who have scammed students and workers under the assurance of better pay and standard of living. Indians have been travelling to Armenia for many years for educational and employment purposes. The influx of India into Armenia may require better regulation and protection from the authorities in both countries.
Since 2018, there has been a steady increase in Indian labour influx in the country, leading to some locals worrying whether Indians would take their jobs. At the same time, some local businesses are optimistic about the new migrant labourers, according to local sources. Media reports indicate that many of the migrants are from South India.
India-Armenia Connect
The India-Armenian connections go back 2000 years; read a media report, it’s only in the past years that the relations have been formalised with various bilateral agreements. The former Indian ambassador to Armenia, Achal Kumar Malhotra, while speaking at a university, said that the people-to-people relations between the two countries go back centuries. The Armenian King would welcome Indian travellers; they even lived harmoniously for over 450 years. In the later years, the Armenian King adopted Christianity, changing the region’s demographic profile.
Similarly, Armenians settled in India from the medieval era, setting up their churches in Chennai and Kolkata. But at the time of the Indian Independence, many Armenians started to leave the country to other Western nations.
After Armenia became Independent in 1991 from the Soviet Union, it was in 1992 when both countries began with their diplomatic relations. Over the years, India and Armenia have worked together in sectors such as culture, trade, and defence. Both countries in 2010 signed a Memorandum of Understanding (MoU) on educational and scientific cooperation. In addition, they formalised cultural relations in the fields of language, art, and literature. It only goes on to explain why people from both countries have been able to grow together and foster more opportunities.
Deepening Defence Ties
Due to the distance between the countries and lack of connectivity, it was not until recently that better trade took place. Armenia is one of the largest importers of Indian products, including in the defence market. According to reports, the bilateral trade increased from 33.91 million in 2017-18 to 162.32 million in 2021-22. The bilateral trade and investment took shape at the behest of the India-Armenia Joint Business Council, which was established in 2019. It could expand with the free trade agreement (FTA), which is being worked out between the Eurasian Economic Union (EAEU) and India.
In recent years, India-Armenia relations have improved significantly, including people-to-people connections. The countries shook hands on significant military agreements such as importing the Pinaka Multi-Barrel Rocket Launchers and Anti-Tank Missiles. According to an estimation, the deal could be worth over Rs. 2,000 crores. Reports suggest that Armenia may acquire ‘Akash’, a short-range surface-to-air missile (SAM). An Armenian official reportedly said, “India is a credible weapons supplier” to Armenia.
Since 2022, India has consistently provided defence supplies to Armenia. In 2020, Armenia acquired the Swathi weapon-locating radar system from India. Subsequently, in 2022, an export agreement was inked for missiles, rockets, and ammunition. In the upcoming year, 2023, India is poised to export its Akash anti-air system to Armenia through a Rs 6,000-crore deal with Bharat Dynamics Limited. This comprehensive agreement encompasses rocket launchers, artillery guns, ammunition, and drones.
In August 2023, Armenia took delivery of its inaugural consignment of India’s Advanced Towed Artillery Gun Systems (ATAGS). It has been reported that Yerevan has placed an order for 84 of these artillery systems, totalling $155.5 million. Now, India will export an indigenously developed anti-air system to Armenia, contributing to an expanding array of exports to the Asian nation. It includes multi-barrel rocket launchers, artillery guns, various types of ammunition, and drones.
India has shown concern regarding the conflict between Armenia and Azerbaijan over the Nagorno-Karabakh territory, historically inhabited by Armenians. Despite international recognition of the region as part of Azerbaijan, it was under the control of ethnic Armenians. Azerbaijan regained control of significant portions of Nagorno-Karabakh in 2020, solidifying its dominance through a brief military campaign. New Delhi is apprehensive due to the increasing alignment between Azerbaijan, Pakistan, and Turkey following Azerbaijan’s recent triumph.
As the geopolitical environment changes, relations between India and the Caucasus evolve. In 2023, India, Iran and Armenia created a trilateral to boost the ‘International North-South Transport Corridor connectivity.’ An Armenian minister recently said they are looking forward to building a strategic partnership with India. The arrangement is expected to bring greater transnational relations between India and the Caucasus.
Nitish Chavan
