Surenas
SENIOR MEMBER

- Joined
- Jan 28, 2012
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By Amanda Paul
No matter how much international sanctions may have squeezed Tehran, Iran remains a powerful regional player.
The West, particularly the US, has dominated the discourse over how the world should look at Iran, even though this may not always be in the interests of countries in Iran’s neighborhood. Consequently, these countries have been forced to tip-toe around all the blacklisted institutions in order to find a way to deal with Tehran.
One such country is India. Iran and India have historical ties going back 5,000 years. Apart from being a major contributor to meeting India’s growing energy needs, Iran remains key to India’s Central Asia policies, particularly vis-à-vis Afghanistan. However, India’s relationship with Iran continues to be compromised by pressure from Washington, which expects Delhi to toe the US line, particularly at a time when Delhi desires a closer, strategic relationship with Washington. This has impacted India’s ability to deal freely with Iran.
Iran’s top oil importers have all reduced imports following US and EU sanctions aimed at reining in Tehran’s nuclear ambitions. India, Iran’s second-biggest buyer, relies on outside supplies for 80 percent of its oil needs, approximately 3.5 million barrels per day. After initially snubbing US demands to cut back, Delhi eventually caved, reducing imports by11 percent, although the government claimed it was part of a long-term strategy to diversify energy resources. India, Iran’s biggest rice importer, had indicated it still wants further trade and investment with Tehran, including in the petroleum sector, as long as it can skirt the sanctions.
A key bilateral project is the International North-South Transport Corridor, which Delhi views as the most strategic project for India’s relations with Iran. This corridor will facilitate trade in Eurasia by opening up that enormous market.
Iran is also India’s gateway to Afghanistan, Central Asia and beyond. India and Iran are united over concerns for Afghanistan’s future. India, like Iran, was unhappy over the peace process roadmap that was announced by the Afghanistan High Peace Council earlier this month as it appears indicate a reversion to the old system of collaborating with Pakistan as well as an attempt to incentivize the Taliban to be a part of the new Afghani government after 2014.
India is extremely popular in Afghanistan, including among the public. The two countries signed a strategic partnership in 2011 and, through diplomatic and cultural initiatives, India’s soft power has grown. India trains the Afghan army and police; runs the largest children’s hospital; hosted an international investment conference; pledged some $2 billion worth of aid over the last decade to build roads, power stations and the parliament building; and has been granted rights to mine Afghanistan’s prime iron ore reserves.
By working to support democratic governance and integrate Afghanistan into the wider region, India believes it is consolidating its own national security -- namely, by eliminating a critical safe haven for terrorists who have attacked India while opening the way to strengthening regional energy and trade interests.
Clearly, India also aims to minimize Pakistan’s influence. India and Pakistan have contrasting visions for Afghanistan. Pakistan wants to influence the way in which Afghanistan is governed, undermine India’s influence and prevent India from further projecting its power into South Asia. In this context, a further reason India wishes to maintain strong ties with Iran is to prevent a further strengthening of ties between Pakistan and Iran. While frequently foes, relations between the two have improved, their main goal being to reduce US influence in Afghanistan after 2014. Meanwhile, Iran is looking for new markets for its oil and gas. However, historically at odds over Afghanistan, it would seem unlikely any rapprochement will be sustainable.
Ultimately, it seems unlikely that India will be ready to scale back relations with Tehran; instead, it would seem that Delhi will continue to try to balance US pressure on one side with strategic and economic interests in Iran on the other. Moreover, as Indian and US interests mainly converge in Afghanistan, the US should not ask India to scale back ties with Iran, which may result in Tehran cutting Indian access to Afghanistan, which would also be counterproductive for the US.
Iran and India: a complex yet crucial relationship
No matter how much international sanctions may have squeezed Tehran, Iran remains a powerful regional player.
The West, particularly the US, has dominated the discourse over how the world should look at Iran, even though this may not always be in the interests of countries in Iran’s neighborhood. Consequently, these countries have been forced to tip-toe around all the blacklisted institutions in order to find a way to deal with Tehran.
One such country is India. Iran and India have historical ties going back 5,000 years. Apart from being a major contributor to meeting India’s growing energy needs, Iran remains key to India’s Central Asia policies, particularly vis-à-vis Afghanistan. However, India’s relationship with Iran continues to be compromised by pressure from Washington, which expects Delhi to toe the US line, particularly at a time when Delhi desires a closer, strategic relationship with Washington. This has impacted India’s ability to deal freely with Iran.
Iran’s top oil importers have all reduced imports following US and EU sanctions aimed at reining in Tehran’s nuclear ambitions. India, Iran’s second-biggest buyer, relies on outside supplies for 80 percent of its oil needs, approximately 3.5 million barrels per day. After initially snubbing US demands to cut back, Delhi eventually caved, reducing imports by11 percent, although the government claimed it was part of a long-term strategy to diversify energy resources. India, Iran’s biggest rice importer, had indicated it still wants further trade and investment with Tehran, including in the petroleum sector, as long as it can skirt the sanctions.
A key bilateral project is the International North-South Transport Corridor, which Delhi views as the most strategic project for India’s relations with Iran. This corridor will facilitate trade in Eurasia by opening up that enormous market.
Iran is also India’s gateway to Afghanistan, Central Asia and beyond. India and Iran are united over concerns for Afghanistan’s future. India, like Iran, was unhappy over the peace process roadmap that was announced by the Afghanistan High Peace Council earlier this month as it appears indicate a reversion to the old system of collaborating with Pakistan as well as an attempt to incentivize the Taliban to be a part of the new Afghani government after 2014.
India is extremely popular in Afghanistan, including among the public. The two countries signed a strategic partnership in 2011 and, through diplomatic and cultural initiatives, India’s soft power has grown. India trains the Afghan army and police; runs the largest children’s hospital; hosted an international investment conference; pledged some $2 billion worth of aid over the last decade to build roads, power stations and the parliament building; and has been granted rights to mine Afghanistan’s prime iron ore reserves.
By working to support democratic governance and integrate Afghanistan into the wider region, India believes it is consolidating its own national security -- namely, by eliminating a critical safe haven for terrorists who have attacked India while opening the way to strengthening regional energy and trade interests.
Clearly, India also aims to minimize Pakistan’s influence. India and Pakistan have contrasting visions for Afghanistan. Pakistan wants to influence the way in which Afghanistan is governed, undermine India’s influence and prevent India from further projecting its power into South Asia. In this context, a further reason India wishes to maintain strong ties with Iran is to prevent a further strengthening of ties between Pakistan and Iran. While frequently foes, relations between the two have improved, their main goal being to reduce US influence in Afghanistan after 2014. Meanwhile, Iran is looking for new markets for its oil and gas. However, historically at odds over Afghanistan, it would seem unlikely any rapprochement will be sustainable.
Ultimately, it seems unlikely that India will be ready to scale back relations with Tehran; instead, it would seem that Delhi will continue to try to balance US pressure on one side with strategic and economic interests in Iran on the other. Moreover, as Indian and US interests mainly converge in Afghanistan, the US should not ask India to scale back ties with Iran, which may result in Tehran cutting Indian access to Afghanistan, which would also be counterproductive for the US.
Iran and India: a complex yet crucial relationship