India's PM Modi visits Mongolia, seeking stronger ties in China's backyard

PUBLISHED ON MAY 17, 2015 4:14 PM

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Mongolian Prime Minister Chimed Saikhanbileg (right) looks on as India's Prime Minister Narendra Modi receives a bouquet of flowers from a Mongolian child during a welcoming ceremony at the Chinggis Square in Ulan Bator on May 17, 2015. Mr Modi held talks on Sunday with his counterpart during a visit to Mongolia, with the two nations upgrading relations as Delhi tries to strengthen its influence in China's backyard. -- PHOTO: AFP 

ULAN BATOR (AFP) - Indian Prime Minister Narendra Modi held talks on Sunday with his counterpart during a visit to Mongolia, with the two nations upgrading relations as Delhi tries to strengthen its influence in China's backyard.

Meeting Prime Minister Chimed Saikhanbileg, Mr Modi praised the resource-rich nation as "the new bright light of democracy in our world" and said the two were "closely linked to the future of the Asia-Pacific region".

Mongolia is seeking to counterbalance China's growing influence in the landlocked nation. The leaders signed a joint statement upgrading relations to a "strategic partnership", just a year after Mongolia and China reached a similar agreement.

Other agreements included a US$1 billion (S$1.32 billion) line of credit from India to support the expansion of Mongolia's infrastructure, and promises to deepen cooperation on border security and defence.