N4S:

UPSC often asks questions from such topics in a big-picture yet anchored manner. For example, the 2024 GS2 question on India-Central Asia wasn’t just about bilateral ties—it demanded a mix of regional strategy, economic engagement, and global relevance. Topics like IORA and the Indian Ocean Region are treated similarly. They sit at the intersection of India’s diplomacy, security, and economy, and UPSC expects aspirants to connect dots across GS2 and GS3 themes. However, students often falter by preparing such topics in a generic or India-centric way, missing the multilateral angle (like funding deficits in IORA, or lessons from ASEAN and AU). Others skip over the governance or institutional depth needed (e.g., “Lack of a Dedicated Fundraising Mechanism” or “Technological & Digital Divide”), assuming only geopolitical content is important. This article solves that problem. It offers ready subheadings, specific country examples (e.g., Seychelles for traditional marine conservation, France among few IORA members contributing funds), and actionable reforms (e.g., Tiered Membership Contribution Model). That’s the real gap it addresses—it teaches how to move from facts to analysis to solution. The most special feature? It makes a seemingly dry regional grouping dynamic and forward-looking by connecting it to India’s role as a problem-solver—through data, funding models, maritime education, and disaster resilience. With its blend of “challenge-vision-way forward,” this article helps aspirants write answers that sound like policy, not just prep.

This article explores India’s engagement with IORA and the Indian Ocean Region, a theme UPSC approaches through a big-picture lens with grounded analysis. As seen in the 2024 GS2 question on India-Central Asia, UPSC expects more than bilateral facts. It looks for regional strategy, economic logic, and global relevance.

Aspirants often prepare these topics narrowly, missing the multilateral aspects or institutional gaps such as the absence of a dedicated fundraising mechanism or the digital divide. This article addresses that by offering structured subheads, real-world examples like Seychelles’ marine conservation and France’s financial role, and actionable reforms such as a tiered membership model. It connects India’s diplomacy with solutions and policy thinking, helping you write answers that are analytical, forward-looking, and aligned with UPSC’s expectations.

PYQ ANCHORING

1. GS 2: Critically analyse India’s evolving diplomatic, economic and strategic relations with the Central Asian Republics (CARs) highlighting their increasing significance in regional and global geopolitics. [2024]

MICROTHEME:  Groupings involving Immediate and Extended neighbours

India is set to take the helm of the Indian Ocean Rim Association (IORA) in November 2025, after serving as Vice-Chair. This leadership shift opens the door for India to shake up IORA’s governance and drive real change. Over the next two years, India plans to focus on three big priorities: boosting IORA’s budget with fresh funding, harnessing technology for smarter data and policy decisions, and teaming up with academic institutions to create maritime-focused courses. But as this game-changing chapter begins, can India secure the funding IORA needs to thrive? How will tech reshape policy-making in the region? And, will new academic collaborations deliver the next wave of maritime leaders?

Key Priorities for India as IORA Chair

1. Enhancing Funding Opportunities:
   • Engage private sector players such as shipping companies (Maersk, Adani Ports), oil & gas firms (ONGC, Reliance), and marine tourism operators to contribute financially to IORA initiatives.
2. Strengthening Maritime Security & Safety:
   • Expand India’s Information Fusion Centre – Indian Ocean Region (IFC-IOR) in Gurugram to enhance real-time maritime surveillance.
   • Address threats like piracy, illegal fishing, and trafficking.
3. Integrating Technology for Data Management & Policy Analysis:
   • Promote AI-driven marine data analytics to track ocean health, predict climate change impacts, and improve fisheries management across IORA nations.
4. Developing Maritime Education & Skill-Based Training:
   • Partner with institutions like IIT-Madras and the National Institute of Ocean Technology (NIOT) to create specialized courses in marine economy, deep-sea exploration, and coastal governance.
5. Strengthening Blue Economy & Sustainable Practices:
   • Collaborate with Australia for marine research, UAE for investment in sustainable fisheries, and Seychelles for traditional knowledge on marine conservation.
   • Develop eco-friendly economic growth models.

Challenges of the Indian Ocean Region (IOR)//mains

Funding: A Major Challenge for IORA

1. Dependence on Member Contributions:
   • IORA’s budget relies on contributions from its 23 member states, many of which are developing economies.
   • Only a few countries (Singapore, UAE, France) have the financial capacity to contribute significantly, while others struggle to meet commitments.
2. Limited Private Sector Involvement:
   • IORA lacks strong partnerships with private enterprises that could provide alternative funding sources.
   • Industries related to shipping, oil & gas, fisheries, and marine tourism remain underutilized in IORA’s funding model.
3. Comparatively Small Budget:
   • IORA’s annual budget is only a few million dollars, which is insufficient for large-scale maritime security, climate resilience, and economic development projects.
   • Example: The Indian Ocean Commission (IOC), despite having only five members, operates with a $1.3 billion budget (2020-25)—significantly larger than IORA’s.
4. Expanding Scope of Activities:
   • IORA is expanding into maritime safety, disaster management, technology, and blue economy initiatives, all of which require significant investments.
   • Example: Implementing maritime surveillance systems and disaster risk management programs demands consistent funding, which is currently lacking.
5. Lack of a Dedicated Fundraising Mechanism:
   • Unlike ASEAN’s Development Fund, IORA does not have a structured mechanism to raise funds through external donors, financial institutions, or international aid agencies.
   • Example: ASEAN collaborates with the Asian Development Bank (ADB) and the World Bank for project funding, while IORA lacks such institutional financial backing.

ADDRESSING THE CHALLENGES

1. Diversifying Funding Sources:
   • IORA should explore alternative funding mechanisms such as public-private partnerships (PPPs), external grants, and contributions from international financial institutions.
   • Example: ASEAN collaborates with ADB and the World Bank for project funding, which IORA can emulate.
2. Enhancing Private Sector Engagement:
   • Establish formal partnerships with industries in shipping, energy, fisheries, and tourism to attract investment in key maritime projects.
   • Example: Creating an IORA Business Forum to facilitate corporate sponsorships and private sector-driven development projects.
3. Setting Up a Dedicated IORA Development Fund:
   • Establish a structured fund where member states, international donors, and regional banks contribute for long-term sustainability.
   • Example: ASEAN Development Fund (ADF) pools resources for regional projects; IORA can replicate this model to support blue economy and maritime security initiatives.
4. Strengthening Bilateral and Multilateral Cooperation:
   • Strengthen financial partnerships with G20 economies, UN agencies, and regional economic blocs to access technical and financial assistance.
   • Example: IORA can seek support from India’s Development Partnership Administration (DPA) or Japan’s Official Development Assistance (ODA) for infrastructure and capacity-building programs.
5. Implementing a Tiered Membership Contribution Model:
   • Introduce a differentiated contribution system where larger economies contribute more while smaller nations have flexible or in-kind contributions.
   • Example: Organizations like the International Maritime Organization (IMO) use GDP-based contribution tiers to ensure fair burden-sharing among members.

7 Regional Organizations IORA Can Learn From

As IORA prepares to take on a bigger role in shaping the future of the Indian Ocean region, it doesn’t have to start from scratch. Around the world, regional organizations have faced—and often solved—many of the same challenges IORA is now tackling: from funding and integration to tech adoption and collective security. By studying what works elsewhere, IORA can fast-track its own transformation and become a more effective, future-ready institution.

Way Forward

India, as the upcoming chair of IORA, has the opportunity to reinforce its leadership in the Indian Ocean region by:

• Spearheading maritime security collaborations.
• Promoting sustainable economic development through the blue economy.
• Facilitating greater private-sector involvement in regional projects.
• Ensuring long-term financial sustainability for IORA.

#BACK2BASICS: Indian Ocean Rim Association (IORA):

 Facts about IORA:

1. Establishment: Formed in 1997 through the Charter of the Indian Ocean Rim Association, initially called IOR-ARC (Indian Ocean Rim Association for Regional Cooperation).
   
2. Headquarters: Ebene, Mauritius.
   
3. Members: 23 Member States and 11 Dialogue Partners
   
   • Member states include India, Indonesia, Australia, South Africa, Iran, Kenya, etc.
     
   • Dialogue partners include the USA, China, Japan, Germany, UK, etc.
     
4. Chairmanship:
   
   • India chaired IORA from 2011–2013.
     
   • Chairmanship rotates every 2 years.
     
   • Sri Lanka currently holds the chair (as of 2023–25).
     
5. Strategic Importance:
   
   • Covers a region that connects the Middle East, Africa, South Asia, Southeast Asia, and Australia.
     
   • Facilitates 90% of global trade by volume, given the Indian Ocean’s critical sea lanes.
     
6. Guiding Principles:
   
   • Open regionalism
     
   • Respect for sovereignty
     
   • Non-alignment
     
   • Consensus-based decision-making
     

Key Initiatives & Areas of Focus:

1. Six Priority Areas:
   
   • Maritime Safety and Security
     
   • Trade and Investment Facilitation
     
   • Fisheries Management
     
   • Disaster Risk Management
     
   • Academic and S&T Cooperation
     
   • Tourism and Cultural Exchanges
     
2. Two Focus Areas:
   
   • Blue Economy
     
   • Women’s Economic Empowerment
     
3. IORA Action Plan (2017–2021 & Extended):
   
   • A roadmap to deepen regional cooperation, particularly in Blue Economy and Maritime Security.
     
4. IORA Concord (2017):
   
   • Signed at the first IORA Leaders’ Summit in Jakarta.
     
   • Outlines a vision for peace, stability, and sustainable development in the IOR.
     
5. IORA’s Blue Economy Initiatives:
   
   • Encourages sustainable use of ocean resources.
     
   • India hosts IORA Centre of Excellence for Blue Economy.
     
6. IORA Disaster Risk Management Core Group:
   
   • Aims to coordinate disaster response and build resilience among member states.
     
7. IORA Academic Group and Think Tank Network:
   
   • Facilitates research and knowledge-sharing in marine sciences, climate resilience, and regional policy.
     
8. India’s Role:
   
   • Hosts events like Indian Ocean Dialogue.
     
   • Provides capacity-building programs and scholarships.
     
   • Promotes maritime domain awareness through Information Fusion Centre – Indian Ocean Region (IFC-IOR) in Gurugram.
     

Significance of Indian Ocean Region (IOR)

MOCK DROP

The Indian Ocean Region is emerging as the new theatre of geopolitical and geoeconomic contestation.” Examine the strategic importance of the region and discuss India’s approach in leveraging opportunities and addressing challenges therein.19.Ocean of Opportunities : Is IORA Missing the Global Playbook ?