INDIA - ESTONIA RELATIONS (Syllabus GS Paper 2 – IR)

Context: Estonia, a global leader in digital innovation, seeks to collaborate with India to enhance cybersecurity infrastructure in both nations. This partnership aims to leverage Estonia's advanced digital expertise to bolster cybersecurity measures in India.

India - Estonia Relations

• Historical Relations: India first recognized Estonia on 22 September 1921, when Estonia was admitted into the League of Nations.

oIndia re-recognized the Republic of Estonia on 9 September 1991, following its declaration of independence from the Soviet Union.

oDiplomatic relations between India and Estonia were established on 2 December 1991.

• Commercial Relations: India and Estonia have potential for increased economic engagement in information technology, cybersecurity, e-governance, and blockchain.

oIndian Exports to Estonia: Major exports include machinery, garments, iron and steel, leather products, travel goods, coffee, tea, spices, footwear, and pharmaceuticals.

oEstonian Exports to India: Key exports are iron and steel, fertilizers, electrical machinery, paper products, and paper pulp.

• Foreign Trade Agreement: In December 2018, Indian Foreign Direct Investment (FDI) in Estonia was valued at 4.89 million Euro, mainly in manufacturing, construction, wholesale trade, transportation, accommodation, food service, information and communication, real estate, and human health and social work.
• e-Residency Program: Launched in 2014, Estonia's e-Residency Program allows non-Estonians to access banking, taxes, company formation, and payment processing. Over 3000 Indians have established nearly 700 enterprises through this program.

oStart-up Visa: Estonia's Start-up Visa, introduced in 2017, ranks India among the top three for startup applicants in 2019, facilitating tech-based business plans for Indian entrepreneurs.

• Cultural Relations: Estonia shows a keen interest in Indian culture, with Sanskrit instruction beginning at the University of Tartu in 1837 and several publications on Sanskrit literature.

oRenowned Indian musicians and dancers have performed in Estonia in recent years, enhancing cultural ties.