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Iranians and Indians have a vast history together with years of ethnic ties and persistent similarities in many aspects of everyday living. Going far beyond the ties of time, India and Iran span millennia in their relationship manifested by meaningful interactions that stretch more than geographic proximity.
With their linguistic similarities existing even today, India has a personal connection with Iran, which was known as Persia that dates back to BC dates. A powerful bond exists between South Asia and the Persian Gulf based on commercial, cultural, energy, and people connectivity.
Current Perspective on India-Iran Relations
India-Iran relations history took place via trade through the Silk route, especially during the Mughal era. However, various factors dominate the cordial relations between India and Iran.
Factors involved in India-Iran Relations
- The vast population of Muslims in India, especially the Shia Muslim community.
- The humanitarian crisis faced by the Afghan economy is unable to balance the scales.
- The ever-growing energy requirement of India and the rich energy resources present in Iran.
The Diplomacy of Iran with India
India constitutes two Consulates in Iran, one present in Bandar Abbas and the other in Zahedan. Likewise, Iran has its Embassy located in New Delhi. Moreover, Iran has two Consulates in India, one in Mumbai and the other in Hyderabad.
The Strategic Considerations in India-Iran relations
India and Iran have converging interests in defence and security parameters that involve maintaining stability in Central Asia and fighting militant groups in the region. This has led to New Delhi maintaining a constant engagement with Tehran. Following the initiation of the Indo-Iran Joint Commission in 1983, Iran required assistance from India for developing batteries for their Kilo-class submarines.
This cooperation was built three years after the Iran-Iraq war. The Indian Navy modified the Iranian submarine mechanism to improve its operating efficiency in the warm waters of the Arabian Gulf.
Later, in 2001, the Memorandum of Understanding (MoU) was signed. Also known as the Tehran Declaration, this agreement signalled the commitment between India and Iran toward achieving disarmament as a long-term goal.
Defining the US position in the collaboration
The United States pulled out of the Joint Comprehensive Plan of Action (JCPOA) and forced 1.5 million barrels of Iranian oil out of the global market. The European Union (EU) facilitated the resource trade with Iran, and this decision put India into concern. As a result of US pressure, India’s import range of resources substantially declined.
The Reserve Bank of India implemented its discontinuation with the currency swap of the Asian Clearing Union (ACU) under US pressure. This led to the US forcing India to reduce its oil imports from Iran even further.
India-Iran Relations under PM Modi
India’s Prime Minister Shri Narendra Modi announced during the Lok Sabha elections in 2014 that his government would lead on to keeping ties with Iran and also embarked on a two-day visit to Iran two years later. This led to the agreement concerning the Chabahar port and a Trilateral Transport and Transit Corridor.
This signified the contract between India Ports Global Private Limited and the Arya Bander of Iran. After both India and Iran expressed their confidence regarding agreeing with the Farzad-B gas field, the Indian companies agreed to invest 20 billion dollars in establishing petrochemical and fertiliser plants in the Chabahar Special Economic Zone.
President Donald Trump of the United States imposed his first set of sanctions on Iran on August 7, 2018, followed by the next set of sanctions in November of the same year. This exhibited a precarious situation for India, which needed crude oil imports from Iran. Trying to get a waiver from the US sanctions, India reduced its oil imports from Iran.
The waiver was ultimately granted to India and other neighbouring countries for permission to initiate their operations at Chabahar port. Later in 2019, the US announced that no further waiver would be granted, and Iran’s recent support for the Taliban has become a matter of concern for India.
Final Words
In the foreseeable future, India-Iran trade may continue to flourish with India’s consideration for requiring energy security to sustain its economic growth. India seems to maintain a delicate relationship with Iran and the USA conventionally and unconventionally. The Middle East and West India are highly dependent on energy, which involves India’s risk assessments in forging ties with Iran.
As a result, Iran remains important to India for their collaborations over the geopolitical location and economic point of view. All efforts need to ensure that this mutually beneficial tie continues to thrive between the two nations.
