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GS II: International Relations – India-Iran Dynamics

Highlights of the Article

Importance of Bilateral Relations

Economic Cooperation Opportunities

Strategic Military Cooperation

Geopolitical Implications for West Asia

Context:

At the 16th BRICS Summit hosted by Russia in Kazan (October 22-24, 2024), there were a few meetings on the sidelines which created a buzz. One such meeting was between India and Iran, both close civilisational friends and looking to strengthen a stagnating partnership. Iran, which is now embroiled in the war in Gaza, is looking for Indian support in de-escalating the crisis. India, too, has supported having a ceasefire and de-escalation at the earliest. Globally, India is being widely sought after to facilitate a peaceful resolution to the conflict as it enjoys trust and goodwill across both ends of the conflict, with Israel and Iran.

UPSC EXAM NOTES ANALYSIS

1. Bilateral Potential

• The recent meeting between Prime Minister Narendra Modi and Iranian President Masoud Pezeshkian marked their first official engagement. In this meeting, both leaders recognized the significant and unexplored potential within their bilateral ties.
• Pezeshkian acknowledged India's increasing influence on the global stage and emphasized its prospective role in mediating the Gaza conflict.
• He also highlighted India's crucial involvement in 2023 that facilitated Iran's membership in major multilateral bodies, including the Shanghai Cooperation Organisation (SCO) and BRICS. The discussions further extended to enhancing collaboration in vital sectors like the Chabahar port and the International North-South Transport Corridor (INSTC).
• However, Iran's significance to India extends beyond the Chabahar port and its associated connectivity benefits. Iran is essential due to its substantial crude oil and natural gas reserves, which are estimated at 209 billion barrels and 33,988 billion cubic meters, respectively.
• By the end of 2021, these reserves represented 24% of West Asia's oil and 12% of the total global oil reserves. Even amid severe economic sanctions and the ongoing Gaza conflict, Iran's crude oil production increased to 3.4 million barrels per day in May 2024, with exports averaging 1.61 million barrels per day in March 2024

 2. Possible Partnership

• The Chabahar port has become a pivotal element in the recent strengthening of India-Iran relations. A significant 10-year agreement for the port's operation was signed on May 13 of this year. Chabahar port offers convenient and direct access to India’s Kandla and Mumbai ports.
• Its strategic location outside the Strait of Hormuz protects India’s trade from potential disruptions caused by conflicts in the Persian Gulf. Additionally, a 700-kilometer railway link between Chabahar and Zahedan is being expedited, with plans for it to connect to Iran's broader railway network.
• There is also a proposed road connection from Zahedan to Zaranj in Afghanistan, which could facilitate uninterrupted humanitarian aid from India to Afghanistan.
• Energy collaboration represents another significant opportunity. Prior to May 2019, Iran supplied nearly 12% of India’s crude oil needs. As the bilateral relationship improves, the resumption of oil and gas imports from Iran could fulfill India’s energy demands.
• The potential Iran-Oman-India gas pipeline has been under consideration since 1993. In May 2022, Iran and Oman reached an agreement to construct two undersea gas pipelines and an oil field along their maritime borders. Should this project proceed, extending these pipelines to India could be feasible.
• Moreover, there are prospects for enhanced military collaboration between India and Iran. A defense cooperation agreement was established in 2001, but its implementation was hindered by Western sanctions on Iran. Recently, Iran has advanced its military capabilities, developing modern platforms including short- and medium-range ballistic missiles, hypersonic missiles, and armed drones. Iran is already supplying armed drones to Russia for its operations in Ukraine, making it a potential partner for India, which seeks to create cost-effective armed drone technology.
• To address the threats posed by terrorist groups operating from Pakistan, India and Iran could engage in joint counterterrorism exercises and establish intelligence-sharing initiatives. In terms of naval cooperation, port visits to Iranian facilities and the development of logistical support in the Persian Gulf could prove highly beneficial

 3. India's Diplomacy

• India and Iran have significant opportunities for collaboration, and there is a shared understanding that valuable time has already been lost in strengthening their relationship. India’s capacity to navigate its ties independently with countries that have conflicting interests, such as Iran and Israel, could play a crucial role in enhancing their partnership.
• Additionally, India’s commitment to strategic autonomy in matters of national interest—demonstrated by its approach towards Russia amid the Ukraine conflict—serves as a positive example for revitalizing its relations with Iran.
• However, occasional offhand remarks can jeopardize this budding relationship. For instance, a comment made by Iran’s Supreme Leader on September 16, which likened the “sufferings” of Indian Muslims to those of Gazans, sparked strong reactions in India. Both nations need to recognize that their bilateral relationship is too valuable to be undermined by such isolated statements.
• Under Modi 3.0, India aims to enhance its engagement and strategic alignment in West Asia. Concurrently, Iran is focused on solidifying the diplomatic advancements it has made in recent years, viewing India as a key ally. The discussions at the BRICS Summit may have provided a necessary boost for both countries to move forward

 4. Conclusion

The evolving relationship between India and Iran represents a significant diplomatic opportunity for both nations to capitalize on their shared interests and historical ties. The potential for collaboration extends beyond economic cooperation and encompasses critical areas such as energy security, infrastructure development, and military collaboration. As India seeks to assert its strategic autonomy and enhance its role on the global stage, engaging with Iran could bolster its influence in the West Asian region.