India's view of the world · A factual referenceLast updated 12 May 2026 · Edition 04
COUNTRY RELATIONSHIP · AZERBAIJAN
India & Azerbaijan
ENERGY COOPERATIONINSTC CORRIDORCASPIAN REGIONGROWING TIES
India and Azerbaijan maintain friendly bilateral relations shaped by energy cooperation, connectivity through the International North-South Transport Corridor (INSTC), and shared interest in regional stability in the South Caucasus. Azerbaijan is an important Caspian energy producer and its SOCAR oil company has had interactions with Indian energy companies. The India-Azerbaijan relationship carries geopolitical nuance given India's arms supply relationship with neighbouring Armenia.
COOPERATION AREAS
Where India and Azerbaijan actually work together
4 active areas of cooperation, as of July 2026. Click any card for the full brief.
TRADE & INVESTMENT
By the numbers
Approximate figures. Bilateral trade is growing. Source: MEA bilateral brief and DGFT data.
~$400m
Total bilateral trade in goods
$200m
India exports to country
$200m
India imports from country
Trade trajectory · USD bn
$0.4bnin 2023 · click a bar to compare years
TOP TRADED ITEMS
AGREEMENTS & MILESTONES
The relationship since 1992, in 5 dates
CURRENT STATE
Where things stand, 2026
India-Azerbaijan relations are friendly but carry the diplomatic complexity of India's arms relationship with Armenia. Energy and INSTC connectivity are the most substantive bilateral pillars. Azerbaijan's hosting of COP29 and its ambitions as a regional logistics hub create new engagement opportunities. The relationship is expected to grow as INSTC cargo flows increase and Indian businesses expand into the South Caucasus market.
SIGNALS TO WATCH
On track / positive momentum
In progress / worth watching
Stalled or facing headwinds
Not yet started / unclear
QUICK FACTS
CapitalBaku
Population10 million
RegionEurope
Diplomatic tiesSince 1992
Indian diaspora~3,000
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