Hindu Editorial Analysis : 6-November-2024

The relationship between India and Iran is deep-rooted in history, shaped by centuries of cultural, economic, and civilizational exchanges. From ancient trade routes to shared influences in art, language, and architecture, both nations have long benefited from mutual cooperation. Despite these strong historical ties, their relationship has faced challenges, especially in recent years due to changing geopolitical dynamics and sanctions.

Political Relations Over Time

India and Iran’s political relations have been strengthened through various high-level visits and agreements over the decades. Key milestones include:

  • 1950: Signing of the India-Iran Friendship Treaty
  • 2001: Indian Prime Minister Atal Bihari Vajpayee’s visit to Iran, marking the Tehran Declaration
  • 2016: Prime Minister Narendra Modi’s visit, leading to 12 key agreements, including the Trilateral Agreement with Afghanistan
  • 2018: Iranian President Hassan Rouhani’s visit to India, resulting in 13 agreements, including Chabahar Port operations.

These visits and agreements highlight the importance both countries place on their bilateral ties.

Economic and Trade Relations

In recent years, India-Iran trade has seen growth. In the fiscal year 2022-23, bilateral trade reached $2.33 billion. Key trade items include:

  • India’s exports to Iran: $1.66 billion
  • India’s imports from Iran: $672.12 million

Despite challenges such as U.S. sanctions, both countries are keen to expand their economic exchanges, particularly in the energy sector.

Strategic and Security Cooperation

India and Iran have established several mechanisms to address mutual security concerns, such as:

  • Joint Committee Meetings (JCM)
  • Foreign Office Consultations (FOC)
  • Security Consultations at the level of National Security Advisers
  • Joint Consular Committee Meetings (JCCM)

These mechanisms help facilitate cooperation on regional stability, terrorism, and other security challenges.

Key Areas of Cooperation

  1. Energy Cooperation Energy remains a cornerstone of the India-Iran relationship. Before 2019, Iran was a significant supplier of crude oil to India. In 2024, Iran’s crude oil production reached 3.4 million barrels per day, showing its capacity to meet India’s energy needs. Both nations are keen to enhance energy ties despite challenges like sanctions.
  2. Strategic Connectivity Projects The Chabahar Port is a vital project for India, providing a route to trade with Central Asia while bypassing the Strait of Hormuz. In 2024, India and Iran signed a 10-year contract for Chabahar’s operations, further enhancing regional connectivity. A 700 km railway link between Chabahar and Zahedan, connecting to Afghanistan, is also in development, which could bolster trade and humanitarian aid.
  3. Regional Stability At the 16th BRICS Summit, India and Iran also discussed regional issues, particularly the ongoing conflict in Gaza. India’s balanced diplomatic approach, advocating for ceasefire and peaceful resolutions, aligns with Iran’s efforts to promote peace and stability in the region.

Challenges in India-Iran Relations

While the potential for stronger ties is clear, several challenges remain:

  • Sanctions and Economic Constraints: U.S. sanctions on Iran have severely impacted trade, especially oil imports, which are crucial for India’s energy security.
  • Geopolitical Tensions: Regional rivalries, particularly between Iran and powers like Saudi Arabia and Israel, make India’s diplomatic position more complex.
  • Security Concerns: Terrorism and regional instability, especially in Afghanistan, remain significant concerns for both countries.
  • Project Implementation: Infrastructure projects like the Chabahar Port and the International North-South Transport Corridor (INSTC) face logistical, financial, and political challenges that could hinder their successful completion.

Why In News

On the sidelines of the 16th BRICS Summit, held in Kazan, Russia, India and Iran held a crucial bilateral meeting, highlighting the untapped potential in their partnership, which has been historically rich but faced stagnation in recent years due to geopolitical tensions and external pressures, yet the meeting underscored both countries’ commitment to revitalizing and expanding their ties across multiple sectors.

MCQs about India-Iran Relations

  1. What is the primary focus of the India-Iran bilateral meeting held on the sidelines of the 16th BRICS Summit?
    A. To discuss military cooperation
    B. To highlight the untapped potential in their partnership
    C. To address regional security threats
    D. To focus on space research collaboration
    Correct Answer: B. To highlight the untapped potential in their partnership
    Explanation: The meeting emphasized strengthening the historical ties between India and Iran and exploring the untapped potential in various sectors such as energy, trade, and connectivity.
  2. What was one of the key projects discussed during the India-Iran bilateral talks?
    A. Development of nuclear energy
    B. Construction of a high-speed rail network
    C. Operation and expansion of the Chabahar Port
    D. Joint space exploration missions
    Correct Answer: C. Operation and expansion of the Chabahar Port
    Explanation: The Chabahar Port was a significant focus in the discussions, as it provides India with vital access to Central Asia and offers an alternative route for trade. The countries signed a 10-year agreement to ensure its operation and expansion.
  3. How much did India-Iran bilateral trade reach in the fiscal year 2022-23?
    A. $1.5 billion
    B. $2.33 billion
    C. $3.5 billion
    D. $5 billion
    Correct Answer: B. $2.33 billion
    Explanation: Bilateral trade between India and Iran reached $2.33 billion in the fiscal year 2022-23. This figure includes India’s exports to Iran and imports from Iran, which highlight the ongoing economic exchanges between the two countries despite challenges.
  4. What challenge does the India-Iran relationship face due to U.S. sanctions?
    A. Limited cooperation in space exploration
    B. Disruptions in energy trade, particularly oil imports
    C. Restriction in defense cooperation
    D. Inability to engage in joint cultural projects
    Correct Answer: B. Disruptions in energy trade, particularly oil imports
    Explanation: U.S. sanctions on Iran have disrupted energy trade, particularly the import of Iranian oil, which was a significant part of India’s bilateral trade with Iran. This has impacted their economic relationship, especially in the energy sector.

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