India and Brunei on Wednesday expanded their long-standing cooperation in space to satellite development and discussed the potential for long-term LNG supplies, even as Prime Minister Narendra Modi made a veiled swipe at China by saying India backs a “policy of development, and not expansionism” across the region.

Modi, the first Indian premier to make a bilateral visit to Brunei, and Sultan Hassanal Bolkiah, agreed to elevate four-decade-old diplomatic ties to an enhanced partnership and discussed collaboration in emerging areas such as fintech and cyber-security.

A joint statement issued after talks between the two leaders said, without naming China, that India and Brunei are committed to promoting peace, stability, maritime security, and respecting freedom of navigation and overflight and unimpeded lawful commerce in keeping with international laws. The leaders also urged all parties to “resolve disputes through peaceful means” and in line with international law.

Speaking at a lunch hosted by the sultan, Modi described Brunei as an important partner in India’s “Act East” policy and Indo-Pacific vision. “We support freedom of navigation and overflight under international laws like UNCLOS [United Nations Convention on the Law of the Sea]...We support the policy of development, and not expansionism,” he said, speaking in Hindi.

Modi added in a post on X that talks between the two sides were wide-ranging and aimed at cementing bilateral ties. “We are going to further expand trade ties, commercial linkages and people-to-people exchanges,” he said.

A renewed memorandum of understanding (MoU) on cooperation in the operation of a telemetry, tracking and telecommand station in Brunei for India’s satellites was signed by external affairs minister S Jaishankar and Brunei’s transport and info-communications minister Pengiran Shamhary.

“To strengthen our cooperation in the space sector, we have agreed on cooperation in satellite development, remote sensing and training,” Modi said in his speech at the lunch. According to the joint statement, Modi expressed “deep appreciation” to Brunei for continuing to host the Indian Space Research Organisation (ISRO)’s ground station. Both leaders appreciated the long-standing arrangement under an existing MoU and the conclusion of the renewed MoU.

Brunei has been a special partner in India’s burgeoning space programme. The two sides signed three MoUs in this field in the past and in 2000, India established a telemetry tracking and command station in Brunei that allows it to track and monitor all eastward launches of satellites.

In the energy sector, the two sides discussed the “potential for long-term cooperation in LNG”, Modi said. They further discussed cooperation in defence industry, training and capacity building to strengthen defence cooperation, he said.

Two-way trade has dipped after hovering at around $500 million for almost a decade, especially after India’s purchases of crude from Brunei declined in the past two years. Officials said the two sides were exploring the possibility of India securing long-term LNG supplies from Brunei to meet growing domestic demand.

“This year, we are celebrating the 40th anniversary of our diplomatic ties. On this occasion, we have decided to commemorate our relations as an enhanced partnership,” Modi said. Besides strengthening cooperation in the economic, scientific and strategic sectors, the two sides decided to bolsters collaboration in fintech, cyber-security, agri-industry, pharmaceuticals and health, he said.

Modi and Hassanal Bolkiah also condemned all forms of terrorism and called on “states to repudiate it”, the joint statement said. “They underlined that no country should allow territory under their control to be used for terrorism; no country should harbour terrorists and resolved to work together to bring perpetrators of terrorist acts to justice,” it added.

India and Brunei agreed to enhance cooperation to counter linkages between terrorism and trans-national organised crime, and to work together at the UN and other multilateral forums to combat terror.

Royal Brunei Airlines announced it will launch the first direct flights from the capital Bandar Seri Begawan to Chennai from November, and the two leaders said this connectivity will foster stronger people-to-people links and facilitate increased trade and tourism activities.

In a post on X, Modi described his visit to Brunei as productive and said: “It ushers in a new era of even stronger India-Brunei ties.” From Brunei, Modi travelled to Singapore, where he is set to hold talks with the city state’s top leadership on Thursday. The two sides are expected to unveil several MoUs, including a crucial one on cooperation in creating a semiconductor ecosystem.

(With Inputs From Agencies)