Context

• The Indian Ocean Rim Association (IORA) is a crucial regional organisation that promotes cooperation among Asian, African, and Australian nations connected through the Indian Ocean.
• With India set to assume chairmanship in November 2025, the country has an opportunity to strengthen IORA’s governance and enhance its relevance on the global stage.
• India’s priorities as chair include increasing financial resources, integrating technology for data management, and developing maritime-ready academic programs.
• Given the region’s economic significance and security challenges, IORA’s role in developing cooperation and sustainable development is essential.

The Strategic Importance of the Indian Ocean Region (IOR)

• IOR is an integral part of the Indo-Pacific but maintains unique characteristics.
• It is home to two-thirds of the global population and serves as a critical hub for international trade, with 75% of global trade and 50% of daily oil consumption passing through its waters.
• The region generates over $1 trillion in goods and services annually, with intra-IORA trade reaching $800 billion in 2023.
• IORA, one of the oldest intergovernmental organisations in the region, aims to facilitate collaboration among its members through cultural and academic exchanges, disaster risk management, and economic development.
• Although it has dialogue partners like the United States, China, and the European Union, it primarily relies on middle and smaller powers.
• However, despite its economic importance, the IOR faces significant challenges, including underdevelopment, political instability, climate change-induced disasters, and security threats such as piracy, terrorism, and human trafficking.
• These transnational issues necessitate regional cooperation to find sustainable solutions.

Challenges Faced by IORA

• Funding Constraints
  • A major challenge for IORA is its limited financial resources.
  • The organisation’s annual budget is largely dependent on the contributions of its member states, many of which are developing countries.
  • This financial model poses a problem as the capacity of these member states to contribute substantial amounts is constrained.
  • Countries such as Singapore, the UAE, and France are exceptions, but the majority of IORA members are smaller, less economically developed nations that cannot contribute significantly to the budget.
  • This creates a funding shortfall, particularly for critical areas like maritime security, disaster management, and sustainable economic growth in the region.
• Reliance on Member Contributions
  • Due to the reliance on member contributions for its budget, IORA’s financial sustainability is inherently precarious.
  • This dependency results in fluctuations in available funding, limiting IORA’s ability to plan long-term initiatives and execute programs effectively.
  • While IORA’s member states recognise the importance of the association, they struggle to sustain continuous, large-scale funding commitments, as they themselves face economic and political challenges.
  • Many member nations are engaged in their own developmental priorities and regional concerns, leading to the prioritisation of immediate domestic issues over regional commitments to IORA.
• Limited Capacity for Data Processing and Policy Analysis
  • Another challenge facing IORA is its small Secretariat, which is based in Mauritius, and its limited human resources and technological infrastructure.
  • The Secretariat is responsible for coordinating activities across a large and diverse region, but it operates with a relatively small staff.
  • Government institutions, such as IORA’s Secretariat, often suffer from bandwidth limitations when it comes to processing and analysing large amounts of data, which is critical for timely and informed decision-making.
  • Given the increasing complexity of issues such as climate change, maritime security, and economic development in the Indian Ocean Region, there is a growing need for sophisticated data management systems.
• Insufficient Involvement of the Private Sector and Industry
  • Despite the significant role that industries such as shipping, marine tourism, oil and gas, and fisheries play in the Indian Ocean’s blue economy, IORA has not sufficiently integrated the private sector into its policy-making processes.
  • Many of these industries are key contributors to the economic activities of the region, but they are often excluded from IORA’s deliberations on maritime policy and regional governance.
  • This lack of private sector involvement not only restricts the flow of capital but also limits the expertise and practical solutions that industry leaders could bring to IORA’s discussions.

India’s Role and Strategic Recommendations

• India’s vision for ‘Security and Growth for All in the Region’ (SAGAR) aligns with IORA’s objectives and offers a framework for strengthening regional cooperation.
• As chair, India can leverage its strong diplomatic ties with member states to develop practical solutions.
• Several member countries, such as Australia, have advanced research in marine science and technology, while others like France and Singapore excel in marine-related technologies.
• The UAE and Oman can contribute investments in sectors where IORA needs support.
• Additionally, traditional knowledge from coastal and island nations such as Sri Lanka, Seychelles, and Mauritius should be integrated into sustainable marine governance strategies.
• To promote long-term development, IORA should encourage collaboration between industrial leaders and academic institutions.
• Marine-related employment opportunities are expected to increase, necessitating specialized training programs.
• Introducing interdisciplinary courses, such as marine accounting, can help build a skilled workforce for the blue economy.

Conclusion

• IORA holds immense potential for enhancing regional prosperity and security.
• India’s upcoming chairmanship presents an opportunity to address existing institutional challenges and reinforce IORA’s role as a key player in the Indian Ocean Region.
• By focusing on financial sustainability, technological integration, and capacity-building through education and research, India can help IORA evolve into a more effective and influential organization.
• Through proactive leadership and strategic partnerships, IORA can become a model for regional cooperation and sustainable development in the Indo-Pacific.