Strengthening of ties between India and Iran

In Context 

Recently ,India-Iran discussed strengthening of bilateral relations and strategic affairs during delegation-level talks.

India-Iran Relations 

• Historical :
  • India-Iran relations span millennia marked by meaningful interactions.The two countries shared a border till 1947 and share several common features in their language, culture and traditions. 

• Political relations
  • India and Iran signed a friendship treaty on March 15, 1950.
  • Prime Minister Shri Atal Bihari Vajpayee visited Tehran in 2001 and signed the “Tehran Declaration” which set forth the areas of possible cooperation between the two countries.
    • It recognised then Iranian President Mohammad Khatami’s vision of a “dialogue among civilisations” as a paradigm of international relations based on principles of tolerance, pluralism and respect for diversity. 
  • In 2003,both sides signed “The New Delhi Declaration” which set forth the vision of strategic partnership between India and Iran. 
• Security 
  • Both India and Iran also consult each other on security matters.
    •  There are regular bilateral exchanges at the level of National Security Advisors and Deputy National Security Advisors. 

• Economic and Commercial Relations
  • India-Iran commercial ties were traditionally dominated by Indian import of Iranian crude oil. 
  • The bilateral trade during 2019-20 was $4.77 billion, a decrease of 71.99% as compared to the trade of $17.03 billion 2018-19.
  • India’s major exports to Iran include rice, tea, sugar, soya, medicines/pharmaceuticals, man-made staple fibres, electrical machinery, etc. 
  • Major imports from Iran include inorganic/organic chemicals, fertilisers, cement clinkers, fruits and nuts, leather, etc. 

• Connectivity
  • During the visit of Prime Minister Shri Narendra Modi to Tehran in May 2016, the contract on the Shahid Beheshti port of Chabahar was signed which, inter-alia, comprises investment of $85 million for procuring equipment of the port. 
    • The contract also comprises provision of a line of credit of approximately USD 150 million for the development of the port.
    • After operations began at the Chabahar port in December 2018, the port handled more than 8200 TEUs and 1.28 million tonnes of bulk cargo. 

• Humanitarian Assistance
  • India has also helped Iran in times of natural disasters and health emergencies.
  • India delivered aid that included PPE kits and PCR machines to Iran in April 2020 during the COVID-19 crisis.

• Cultural Relations
  • An Indian Cultural Centre in Tehran was inaugurated in 2013. 
  • The Cultural Centre was renamed the Swami Vivekananda Cultural Centre (SVCC) in 2018, and was provided a separate premises in 2019. 
  • The International Day of Yoga was organised in 2018, 2019 and 2020. 
  • The 550th Birth Centenary of Sri Guru Nanak was also observed. The centre conducts regular Yoga and Hindi classes.

• People to people contacts
  • There is a high level commitment in both countries to promote and facilitate people to people contacts. I
  • Indian pilgrims visit the Shi’a pilgrimage circuit in Iran (Qom, Mashhad, Hamedan) and Iraq (Najaf and Karbala) every year.

Latest Developments 

• India and Iran  are keen to project themselves as independent strategic actors determined to play a role in shaping a new multipolar order in their shared Eurasian neighbourhood and also at the global level.
• Despite the difficulties posed by decades of American sanctions, Iran has, along with India, Russia and a few other countries in the Eurasian region, continued to work on the multi-modal International North-South Transport Corridor (INSTC). 
  • India is pushing for integrating Chabahar into the 13-nation INSTC. 
• The two sides had pledged to redouble their efforts to build the railway line between Iran’s Caspian port of Rasht and Astara on the Iran-Azerbaijan border. 
  • The 130-km line will connect the railway networks of Iran, Azerbaijan and Russia. 
  • The activation of an alternative Caspian Sea route speaks volumes about the positive outlook of Iran, India and Russia on this corridor despite a variety of geopolitical challenges.
• Finally, against the backdrop of the Russian war in Ukraine, and western sanctions, Iran has also been keen to convince New Delhi to restore its crude oil purchases, which it cancelled in 2019, after threats of U.S. sanctions. 

Concerns for India 

• US sanctions 
  • The sanctions imposed by the US on Iran after Tehran withdrew from the nuclear deal in 2018 may have virtually destroyed India-Iran trade, especially India’s energy imports from Iran.

• Anti-Iran coalition
  •  Ties also appeared to have been hit by New Delhi’s surprise decision to join the Israel-India-UAE-U.S. group, portrayed as an “anti-Iran” coalition, and by perceptions of Iranian support to Yemeni Houthis behind the drone attack on a UAE oil facility where an Indian was among those killed. 
• Strategic stakes
  • Iran also happens to be the entry point for India for trade with the Central Asian countries where India’s geographical approach is limited.
  • With the increasing presence of China in Iran, India has been concerned about the strategic stakes of the Chabahar port project.
    • The access to the Chabahar port may prove strategically important for India.
    • Chinese closer ties with oil producers can bring governance and energy security issues for India.

Conclusion and Conclusion 

• India abstained during the recent voting on the resolution by the US and its allies to censure Iran at the IAEA. 
  • This is in keeping with its stance of resolving the issue through dialogue.
  • the revival of the nuclear deal could give a fillip to India’s economic ties with Iran

• 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 seriously pursue the Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline project to ensure energy security.