IAS Gyan

Daily News Analysis

Indo-Iran relations  

7th August, 2021 International Relations

Context:

  • External Affairs minister S. Jaishankar attended Iranian President Ebrahim Raisi’s swearing in ceremony in the Majlis or Parliament in Tehran.

 

Why is this significant? And does this signal a new chapter in India-Iran ties? 

  • Jaishankar’s visit to Iran carries political weight and indicates the Indian government wants to make a big beginning with the new Iranian president
  • India is trying to walk a tightrope between its ties with the West (especially U.S.) and ties with Iran, as the nuclear talks on US rejoining the JCPOA agreement with Iran are also stalled.
  • US, UK and Israel have come down heavily on Iran, accusing it of carrying out the attack on an Israeli owned tanker last week, the issue now being taken up at the UNSC, where India is the president.

 

Afghanistan- a common cause

  • Afghanistan, where US troops are expected to pull out by August 31, and the Taliban have stepped up attacks.
  • While Iran and India have many differences on their outlook on the status of women, they share a common cause in Afghanistan for several reasons:
  1. India and Iran have faced attacks from the Taliban, Al Qaeda, Lashkar e Toiba and other sunni groups, and have a common concern about the Taliban gaining power in Kabul.
  2. An Islamic Emirate in Afghanistan is a security threat for India and Iran and an existential threat for Pakistan.
  3. While Russia, US, China have advocated power sharing arrangements involving the Taliban in Kabul, India and Iran have upheld the legitimacy of the democratically elected government in Afghanistan, and could cooperate in  bolstering the Ghani government at this time.
  4. India and Iran have been left out of the US Russia China- Troika and Troika plus talks with Pakistan, thus far, despite being regional powers,
  5. Iran and India have cooperated on connectivity projects for Afghanistan and Central Asia, including at Chabahar and the INSTC that goes through Bandar Abbas

 

Why is a restart with Iran needed at this point?

  • From 2018, there have been tensions over India’s decision to cancel or zero out its imports from Iran in 2019, after the Trump administration passed new sanctions and issued a threat.
  • Prior to that India used to import more than 10% of its energy needs from Iran. For Iran, India was a major buyer.
  • Trade between the two that topped $17 billion in 2018 has dwindled to a third, this has had an impact on Indian traders who imported rice, fruits and other produce from Iran in return.
  • The US sanctions have severely curtailed India’s ability to develop the Chabahar project, insurance companies and freight companies don’t want to engage with the project.
  • As a result in 2020, Iran decided to go ahead with its rail project, dropping India from the deal, as it was unable to participate.
  • As a traditional partner, Iran has rarely spoken about India’s internal affairs, including sensitive areas like Kashmir, yet in the aftermath of government’s decision on 370 in Jammu Kashmir, Iran’s leadership criticized the move and the arrests of thousands that followed.
  • Iran has increased ties with China, something that worries India, as Iran and China signed a 25 years 400 bn dollar infrastructure partnership, which could affect Indian interests in Iran, the ports as well as oil and gas resources.
  • Iran is India’s traditional, historical and cultural partner.
  • Until 1947 it was India’s immediate neighbour, and is still a maritime neighbour.
  • It is of immense importance to India as it provides an alternate route of connectivity to Afghanistan, Central Asia and Europe, given the problems with Pakistan and China’s Belt and Road Initiative, which India boycotted.
  • Finally, if India is able to negotiate a way around US sanctions, Iran could once again be a vital source of energy for India at a time when oil prices in India have skyrocketed.

https://www.thehindu.com/news/national/worldview-with-suhasini-haidar-a-new-chapter-in-india-iran-ties/article35775560.ece