How is the Indian Ocean Rim Association a key bloc for India?

Context

‘Reinforcing Indian Ocean Identity’ was the banner theme at the Indian Ocean Rim Association’s (IORA) Council of Ministers (COM) held in Colombo on October 11, that was attended by foreign ministers and senior officials of the 23-nation grouping of countries.

What is the IORA and how was it formed?

The Indian Ocean Rim Association includes 23 countries from Africa, West Asia, South Asia, South East Asia, Australia and littoral states situated in and around the Indian Ocean.
The grouping, whose apex body is the Council of Foreign Ministers that meet once a year, moves by rotation through members every two years.
Sri Lanka took charge as Chair this year from Bangladesh, and India is Vice-Chair, meaning that the troika of IORA is within the South Asian region.
While the IORA was formed in 1997 (then called the Indian Ocean Region-Association for Regional Cooperation) in Mauritius, its genesis came from a speech Nelson Mandela gave in Delhi in 1995.
He was invited by then Prime Minister P.V. Narasimha Rao as the guest for Republic Day, and said at a ceremony that India and South Africa should explore “the concept of an Indian Ocean Rim of socioeconomic cooperation and other peaceful endeavours” that could help developing countries within multilateral institutions “such as the United Nations, the Commonwealth and the Non-Aligned Movement”.

Why does the Indian Ocean Region matter?

A third of the world’s population (2.6 billion people) live in the region, and 80% of global oil trade, 50% of the world’s containerised cargo and 33% of its bulk cargo passes through it.
The region produces a combined total of $1 trillion in goods and services and intra-IORA trade is billed at around $800 billion.
India’s other regional organisations, like SAARC (South Asian Association for Regional Cooperation) and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation), face their own challenges.
While the QUAD (Quadrilateral Security Dialogue), has made progress, it remains U.S.-led, along with military allies Australia and Japan.
Meanwhile, China is actively trying to rope in India’s neighbours with groupings like the Belt and Road Initiative (BRI), China-Indian Ocean Region Forum on Development Cooperation, China-South Asian Countries Poverty Alleviation and Cooperative Development Centre, which exclude India. IORA, however, remains a “safe space” for India and other countries of the region that wish to keep out the constant challenge of big-power rivalries.
IORA membership is based on consensus, and Pakistan has not been admitted to the grouping since it first applied in 2001, on the basis that it has not extended MFN (most favoured nation) status to India, making the IORA a less contentious space for India as well, compared to groupings like the Shanghai Cooperation Organisation (SCO).

What does IORA focus on?

The IORA’s seven priority areas are maritime safety and security; trade and investment facilitation; fisheries management; disaster risk management; academic, science and technology; tourism and cultural exchanges; and gender empowerment.
The IORA also runs a special fund in addition, disbursing $80,000-$150,000 for project grants to members, and has a particular focus on climate change. It is clear that strategic issues and the importance of keeping a free and open sea lane, guarding against piracy, have become an integral part of the discussions.

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