During the recent Prime Minister Narendra Modi’s visit to Mongolia, India announced a $1-billion credit line to Mongolia for infrastructure development.
Modi and Mongolian Prime Minister Chimed Saikhanbileg inked 14 agreements in various sectors, including enhancing cooperation in border defence, policing and surveillance, air services, cyber security and new and renewable energy.
"This year marks the 60th anniversary of our bilateral relations. This is the first ever visit by a prime minister of India in the history of our ties," Saikhanbileg said.
Mongolia is a very small country with a population close to an Indian city. However, its GDP is fast growing with increased investments from neighbouring countries. According to IMF, Mongolia's GDP growth rate topped the world's list in 2011, and was the third highest in 2012.
As for industries, Mongolia is rich in minerals, which represent over 80% of Mongolia's exports.
This can be a good opportunity for Indian companies to explore business prospects in Mongolia. In India, the GDP contribution of the mining industry varies from 2.2% to 2.5%.
Another area of focus can be the health industry. According to a 2011 study by the World Health Organization, poor air quality is a health hazard in Mongolia's capital city of Ulaanbaatar. It has the second-most fine particle pollution compared to any city in the world. It is also an occupational hazard in the country as people are prone to dust induced chronic bronchitis or pneumoconiosis.
Although agriculture is another main occupations in Mongolia, the country imports vegetables from its neighbouring countries.
Given the extreme cold weather, Mongolians are dependent on their neighbour China for their vegetables. Of late, the meat-loving population is turning health conscious and hence, the country offers business opportunities in storage and agricultural technologies.