The upcoming visit of the Sultan of Brunei Darussalam, Hassanal Bolkiah, is expected to identify some basic areas of mutual interest and develop a strategy for future cooperation. This is the second visit to India by the Sultan of Brunei during the last sixteen years. The first visit was in 1992. According to Brunei's officials, expanding energy partnership will be high on agenda during this visit. Located in the north of island of Borneo in the Southeast Asia, and with the total population of approximately 0.4 million, Brunei is one of the richest economies in Asia. The economy of Brunei is highly dependent on its petroleum sector. The petroleum sector contributes 94 percent of Brunei's state revenue, 96 percent of its exports, 74 percent of its investments and 69 percent of its GDP.

India's economic relation with Brunei largely revolves around the import of petroleum goods. In 2005, the total import from Brunei was US$ 189.31 million and the total export to Brunei was US $ 15.62 million. The oil and gas sector accounts for roughly 80 percent of India's imports. The two countries finished their third round of negotiations on the draft Bilateral Investment Promotion and Protection Agreement (BIPPA) in March 2007, which, after completion, is likely to enhance India's economic ties with Brunei. There are around 7500 Indians living in Brunei, working primarily in the construction sector. India also offers training slots to Brunei under the ASEAN-India IT Training Programme and ASEAN-India Human Resource Development Training Programme.

Brunei has always responded positively to India's Look East Policy. Brunei supported India's candidature as a full dialogue partner of the ASEAN. Brunei's navy also took part in the biennial gathering organized by the Indian navy named MILAN. The two countries have also signed a few important bilateral agreements, such as the Air Service Agreement (1995) and Agreement on Cooperation for the Establishment of Telemetry, Tracking and Telecommand Station for Satellites and Launch Vehicles (1997). Though both the countries share the willingness to strengthen the bilateral relations, the institutional framework for bilateral relations has remained in its formative phase.

The bilateral relations are largely based on the convergence of interest and common perception on various international issues. From a pragmatic point of view, the most important question is what India can expect to get from Brunei and what it has to offer to Brunei? First, energy is an important area in which the two countries can develop a strong economic relationship. Today, India is an energy hungry country (India is the 6th largest consumer of petroleum) and Brunei is a net exporter of petroleum. With 1.1 billion barrels of proven oil reserves and 13.8 trillion cubic feet of proven natural gas reserves, Brunei can emerge as an important and long-lasting supplier of oil and gas for India. This will lessen India's dependence on volatile West Asian energy market. Second, Brunei can be an important partner of India in various multilateral forums, especially in the Asia pacific region. In India's bid for permanent seat in the United Nations (UN) Security Council, where every vote will be precious, India can expect support from Brunei. Finally, Brunei can be an untapped market for India's software and human resource exports. Brunei has shown greater interest in cooperation in Information, Communication and Technology (ICT) sectors. In 2006, Brunei's communication minister Pehin Abu Bakar led a delegation to India. He wanted India's help in developing ICT human resource talent in Brunei. He also invited Indian ICT companies for implementing e-governance projects in Brunei.

On the other hand, there are many things that India can offer to Brunei. India provides training to the military officers of many ASEAN countries such as Singapore, Vietnam and Indonesia. India can extend its training services to the defence personnel of Brunei as well. Besides, there are two other areas in which India can offer its expertise to Brunei - maritime surveillance and naval exercises. Brunei is engaged in joint bilateral military exercise with various countries, like the US, Australia, Malaysia, and Indonesia. These exercises and trainings can further strengthen bilateral relations through defence cooperation. Second, recently the sultanate has embarked on diversifying its economy. India can help Brunei in its human resource development and technological development and further broaden the nature and scope of bilateral cooperation. Emerging as an important player in the Asia pacific, India can be a valuable friend for Brunei.

Given the state of bilateral relations between the two countries, there lies an urgent need to further strengthen it. To infuse a new confidence in bilateral relations, a high level visit from the Indian side, probably by a Cabinet Minister, is needed urgently. The last such visit took place in 2006 when the Communication Minister of India visited Brunei to attend an ASEAN-related meeting. It must be remembered that in the formative phase of bilateral relations, some effective policy measures can firmly guide the direction of future relations. And India-Brunei relation is passing through this phase.