India, Iran discuss development of Chabahar Port

In News

• Recently, delegation-level talks between Iran and India were held where both sides agreed on continued cooperation for the development of the Shahid Beheshti terminal of the Chabahar port.  

Major highlights of the meeting

• Bilateral relations: 
  • India and Iran discussed the entire gamut of bilateral relations including political, economic, cultural, and consular engagement.
  • Both countries exchanged views on regional and international issues including Afghanistan.
• Joint Comprehensive Plan of Action was also discussed in the meeting:
  • It is also known as the 2015 Iran nuclear agreement.
  • Iran agreed on a long-term deal on its nuclear programme with a group of world powers known as the P5+1 (the US, UK, France, China, Russia and Germany).
  • Under it, Iran agreed to significantly cut its stores of key components for nuclear weapons like centrifuges, enriched uranium and heavy-water.  

India-Iran relations 

• Diplomatic relationship: 
  • It was established in 1950 with the friendship treaty after which the visits on the ministerial level have increased.
• Commercial ties:
  • India-Iran commercial ties were traditionally dominated by the Indian import of Iranian crude oil. 
  • In 2018-19 India imported USD 12.11 billion worth of crude oil from Iran.
  • India had stopped buying oil from Iran after the US administration imposed tough sanctions on Iran. 
    • Iran is keen on re-starting oil supplies to India and has even offered some concessions on the delivery of crude.
• Trade:
  • The bilateral trade during 2019-20 was USD 4.77 billion, a decrease of 71.99 per cent as compared to the trade of USD 17.03 billion from 2018-19.
  • Indian exports to Iran between 2011-12 and 2019-20 have grown by 45.60 per cent.
  • India’s major exports to Iran include rice, tea, sugar, soya, medicines/pharmaceuticals, man-made staple fibers, electrical machinery, etc. 
  • Major imports from Iran include inorganic/organic chemicals, fertilizers, cement clinkers, fruits and nuts, leather, etc. 
  • Both countries are negotiating a Preferential Trade Agreement, on which five rounds of talks have been held so far. 
• People to people contacts:
  • There is a high level commitment in both countries to promote and facilitate people to people contacts. 
  • Indian pilgrims visit the Shi’a pilgrimage circuit in Iran (Qom, Mashhad, Hamedan) and Iraq (Najaf and Karbala) every year. 

Way Forward

• India and Iran need to rebuild their ties affected adversely by recent global events.
• India must try to remain politically engaged with Iran for a better appreciation of each other’s sensitivities and compulsions and mutual interests.
• It is extremely important for India to take the lead in creating an institutional structure with Iran and Afghanistan and pursue the Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline project to ensure energy security.   

Source: TH