The Council was formed in 1996 with the US, Russia, Canada, Denmark, Sweden, Norway, Iceland and Greenland as members. All these countries have territorial presence in the Arctic region and the Council was formed to formulate and co-ordinate policies for the region. From a largely nominal body it has grown into an active forum for consultations. This has happened with the changes that have taken place in the Arctic region in the last few years and the growing perceptions of its economic importance.

The frozen wastes of the North Pole have emerged as the new frontier for the world, with the ice melting due to climate change, thus opening up huge economic opportunities. It is estimated to contain huge amounts of natural resources, including a good part of the world’s undiscovered oil and gas deposits. There are mineral deposits and prospects of commercial fishing. The melting of the ice has opened up sea routes which will make shipping lines from Asia to Europe shorter and more economical. Movement of ships has increased manifold in the last three years. All this has set off a worldwide competition and a place in the Arctic Council, nicknamed the coldrush club, is therefore considered important. Observers will not be able to participate in discussions but can seek to influence decisions through the permanent members.

It is not unlikely that the race for the northern riches can take dangerous turns also, as it happened when European powers vied for the resources of Asia, Africa and America after the 15th century. Russia planted its flag under the North Pole in 2007 as a sign of its claims in the region, but was warned by others. Cooperation among countries rather than competition is the best policy for the region. An important consideration should be protection of the environment of the fragile and sensitive region. India already has a research station in the Arctic, called Himadri, which was set up in 2008. The country is bound to become more active in the region, with its observer status in the Council.