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Iran factor in India’s Afghan Policy

RISING SUN

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Iran factor in India’s Afghan Policy
As the date of withdrawal of foreign combat troops from Afghanistan draws nearer, New Delhi is determined to play a larger role in the conflict-prone country, in spite of reports of expanding Taliban influence. While some analysts are emphasizing the threat of Taliban and cautioning India to lessen its engagement in Afghanistan, unlike in the 1990s, India is no longer considering ‘withdrawal’ as an option. Moreover, because of continued American presence and long-term assured international engagement in reconstruction activities in Afghanistan, it would be difficult for the Taliban to repeat their performance of the 1990s.
At the moment, a confident India is moving ahead with its plans to provide necessary training to the Afghan National Security Forces (ANSF) in order to make them combat-competent. Ensuring smooth security transition is the key to larger political stability of Afghanistan. India’s Afghan policy is driven by the twin themes of stability and development. A stable Afghanistan is less likely to act as a sanctuary for terror, and pose security threats to the countries in the neighborhood. In addition, India has other Geo-political interests; Afghanistan can provide it with the crucial link (via Iran) to central Asia. Thus Indian investment is aimed at providing critical developmental support and generating goodwill which can be converted into political capital to boost its staying power in Afghanistan.
India has pledged $2 billion worth of aid to Afghanistan. Some projects have already been implemented and some are in the pipeline. India has now proposed community based development projects worth $100 million which it plans to undertake in all the 34 provinces of Afghanistan. These projects would be implemented in the following sectors: agriculture, health, education and rural development. It will be used to provide vocational training, sanitation and drinking water facilities. The number of scholarships for the Afghan students has been raised from a total of 650 to 1000 students per year. India is also planning to allocate an additional $120 million for Salma dam project to meet the escalation cost caused by delay in project implementation. This dam could not be completed as per schedule in 2010 due to worsening security situation in the area resulting from frequent gun-battles between the Taliban and the project security personnel. This project is vital as it will generate 52 MW of power and irrigate 40,000 hectares of farm-land touching the lives of ordinary Afghans.
In this context, to ensure its long-term engagement with Afghanistan, it is imperative for India to work on its relations with Iran which provides vital connectivity with Afghanistan through Chabahar, to sustain India’s presence there. Recently, Pakistan allowed Afghanistan to receive 100,000 tonnes of wheat from India out of its total pledged amount of 250,000 tonnes. This trade consignment is part of the trade and transit Agreement signed between Pakistan and Afghanistan and under this arrangement Afghanistan is allowed to import wheat from India through the Karachi port. However, Pakistan is not willing to allow India overland transit through its territory.
After a long wait (and several meetings), Ahmedinijad government has finally approved $100 million Indian investment in Chabahar port. This has been pending for long due to political reasons. India’s relations with Iran have been strained due to India’s vote in the IAEA. Moreover, because of international sanctions, India is presently facing problems to pay Iran for its oil. There is an argument that by building roads and transportation links India would be able to pay Iran through other means. Notwithstanding US pressure, it is in the strategic interests of India to invest in the Chabahar port as an alternative link with central Asia.
As per some media reports, India wants Afghanistan to be part of this link project and sign a trilateral Agreement on the sidelines of Non Alignment Summit which is going to be held in Tehran on August 30-31, 2012. Kabul has so far been noncommittal about this proposal fearing US reprisal. However, in January this year India assured Iran that it would build the missing part of the road and rail links to connect Iran to Afghanistan and beyond. Lately, some Afghan scholars are proposing an India-Iran-Afghanistan trilateral on the lines of several multilateral arrangements that Kabul has forged with its neighbours. There were also reports that the foreign ministers of these three countries had met in New York in 2010 and discussed the possibilities of initiating such a mechanism. But no progress could be made because of US pressures.
There is no reason why India should not be cooperating with Iran to make its presence in Afghanistan sustainable. Since India is aspiring for a larger role in Afghanistan as envisaged in the Strategic Partnership Agreement between the two countries, any strategy to have an expanded presence in Kabul would require close cooperation with Iran for better access to Afghan territory through Chabahar. In spite of US pressure, Afghanistan has maintained its links with Teheran. It has recently admitted that it did receive regular cash aid from Tehran.
If US wants India to play a larger role in Afghanistan beyond 2014, and coordinate its efforts with the international community to stabilize Afghanistan, it should take a pragmatic look at India’s engagement with Iran. The US knows quite well that Pakistan has refused to provide land transit to India to trade with, or even send essential items to Afghanistan. Keeping in mind the distance and time factor to send goods to Afghanistan through Iran, India had to convert wheat into fortified biscuits to prevent it from rotting during transportation. Even India had to move five mega transformers for Salma dam project by air. Thus Iran remains crucial for India’s engagement with Afghanistan and central Asia.
India is part of many multilateral initiatives on Afghanistan. Recently, India also held Delhi Investment Summit on Afghanistan to encourage private sector investment there. A seven-member Indian consortium, led by the Steel Authority of India Limited (SAIL), has won the bid for three iron ore mines with estimated reserves of 1.8 billion tonne at Hajigok in 2011. It is also interested in bidding for some copper mines in Afghanistan. To transport these mined minerals from Afghanistan Iran provides the only alternative route given Islamabad’s intransigence to allow India transit and trade.
Thus, there are compelling reasons for India to collaborate closely with Teheran to make its Afghan policy successful. In fact, from a pragmatic point of view, India, US and Iran have a convergence of interest in Afghanistan and they should work together to stabilise Afghanistan. However, rather than coordinating their policies towards Afghanistan, US and Iran are engaged in a meaningless confrontation in Afghanistan. Iran wants the US to leave Afghanistan, while the US wants Iran to stay away from the internal conflict in Afghanistan.
In this context, India has limited options; it has to work with the US to stabilise and rebuild Afghanistan and simultaneously, it has to have friendly relationship with Iran to access Afghanistan through its territory in order to sustain its links with Afghanistan. India has its security interests at stake in Afghanistan and would not like the return of a regressive regime in Afghanistan; therefore, it needs to stay engaged in Afghan beyond the withdrawal of foreign forces from Afghanistan. Since India-US relationship has matured in the meanwhile, India’s strategic relationship with Iran should not hurt the US too much. Even if it does, since India has no other alternative, it should not hesitate to pursue a policy independent of US priorities.
Iran factor in India

I would like to know the opinion of Iranian as well as American posters on this subject if India pays for oil by building infrastructure in Iran, will both agree?
 
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I don't see why Iran would disagree but I'm sure America would be pissed.
 
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India in a bind as Iran okays port investment

India is caught in a diplomatic bind ahead of Prime Minister Manmohan Singh’s visit to Iran for the NAM Summit next week. And it’s ironically because of the Ahmadinejad regime giving its consent to Indian investment in Chabahar port, which would provide India an alternative access to Afghanistan, bypassing Pakistan.

The proposed agreement will allow India to invest up to $100 million in the project. While technically the investment may not be covered by the sanctions regime against Iran, sources said, the larger question is the political signal it might send out.

India has just been put on the US’s list of countries exempted from Iran sanctions despite having had strong commercial links with Tehran. One of the key criterion for this was that India showed a declining trend in its oil imports.

Also, India was keen that Afghanistan be roped into the Chabahar agreement and a trilateral document be considered for finalisation on the margins of the Non-Aligned Meet, but Kabul has been cold to the suggestion so far .

The Indian argument has been that Afghanistan would be the ultimate beneficiary of such an arrangement and must commit itself to trading through Chabahar, else the entire exercise could get economically unviable. To that extent, India wants the MoU to specifically cover export to a third country from the port.

Given Afghanistan’s reluctance, the Indian side too has developed second thoughts on the matter, even though the MoU is said to be still under active consideration. It’s quite possible, sources said, that the intent could be signalled during the PM’s visit, but the agreement delayed until all loose ends have been tied up. In any case, a Bilateral Investment Protection Agreement is in the works to fill up the outcomes column for the visit.

The dilemma for India is that Chabahar serves its strategic interests. Delhi has been pushing for it with Iran for close to a decade. In fact, the origins of this connectivity project lie in another trilateral understanding, signed in 2003 between India, Iran and Afghanistan. The agreement covered building a road link from Chabahar to the Afghanistan border by Iran, from where India would construct a 135-mile road on the Afghanistan side between Zaranj and Delaram, which is located on the main Kandahar-Herat highway.

While India has finished constructing the Zaranj-Delaram road despite attacks from terror groups, the connecting link to Chabahar is also ready from the Iranian side. The development of the port is the only aspect of the arrangement that has not taken off, and Tehran has now suggested a fresh MoU to faciliate Indian investments. To get this far, the Iranian government had to undertake a major domestic exercise to designate Chabahar as a sort of a special economic zone to qualify it for receiving foreign direct investment under its own laws.

According to the proposed agreement, the investment can range from $15 million to $100 million depending on the construction activity India would like to undertake. Given India’s stakes in the overall project, India was looking to invest as extensively as it could.

However, a political call would be necessary for India to go ahead with this MoU at this time.

Linked to this is the issue of settling oil bills with Iran given that international banking channels have all been frozen. Project exports was being seen as one way to settle these pending amounts.


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Tehran track

Ahead of Prime Minister Manmohan Singh’s visit to Tehran next week, the Iranian consent to Indian investment in the Chabahar port has thrown into sharp relief New Delhi’s tortuous balancing act on Iran. The prime minister will be in Tehran for the NAM summit and all eyes will be on the bilateral engagement. This visit comes amidst Iran’s growing confrontation with the US and the West as well as with the Arab states of the Gulf. Therefore, it would not be a surprise if Iran were to use the summit to mobilise support for its defiance of the US. For India, the dilemma lies in the political signal the investment will send out at this juncture.

The Chabahar port will provide Delhi with access to Afghanistan and Central Asia, bypassing Pakistan, which blocks India’s land routes. The idea dates back to the visit of former Iranian President Mohammad Khatami to India in 2003 and a trilateral understanding reached then between Delhi, Tehran and Kabul. The port will link western Afghanistan with the Iranian coast via the Zaranj-Delaram road constructed by India on the Afghan side and a road constructed by the Iranians on their side. Chabahar had languished since 2003. But, seeking to break out of international isolation, Iran is now eager to revive the project and draw India into it — at a time when India’s payment in rupees for Iranian oil has made project exports to Iran attractive.

The strategic and economic importance of Chabahar for India is very real. However, having just been put on the US list of countries exempted from the Iran sanctions, India would also want to stay clear of US sanctions. Nor would it want to jeopardise its large economic interests in the Gulf Arab states by tilting towards Iran. Above all, Afghanistan’s reported reluctance to press ahead with the trilateral venture has rightly made Delhi pause. In this case, India has no choice but to carefully calibrate the pursuit of its multiple interests in the region.
 
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This is great news and yet more proof to the world that India has its own independent foreign policy and won't bow to anyone and will serve its own interests. Eff the US, Iran has never threatened India, if it hadn't been for a stupid move on Tehran's part vis a vis the targeting of Israeli diplomats on Indian soil then India and Iran would have a peaceful and prosperous history. Just because the US has problems with Iran doesn't mean the whole world has to does it? I've never heard Ahmedinijad attack India.
 
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How valuable is this port anyway to you country? is there no other way for you guys to have access to Afghanistan?
It's value is very high at-least for India. But there are more other ways but they take much longer route which means more degradation in quality of food products. If you see the map then either India will have to go via china using Nathula pass or via Suez then Black sea Route. But they will take more time & cost. So it's best shot for India considering Pakistan doesn't allow India to trade with India. There was 1 more thought in my mind that why don't we invite IRAN,Tajikistan,Myanmar to join as extended members of SAARC if not full members. If my thinking is correct, all three countries are trying to diversify their basic geopolitical areas. Even Tibet autonomous entity will have also great chance if China allows them. If we go by Wikipedia, Myanmar,Tibet,Iran are also considered part of South Asia due to various cultural,geographical,political & economical factors.
There are few ports which hold Geo-strategic positions for their country. Starting from Chabhar in Iran, Gwadar in Pakistan, Mundra,Port of Kandla,Kochi,Tuticorin,Paradwip,Haldia,Car Nicobar, Andaman and Nicobar Islands in India, Male in Maldives,Hambantota,Trincomalee in Srilanka,Chittagong in Bangladesh,Sittwe in Myanmar.

So it appears that Chabhar hold the key to access central Asia for India & others who don't get permission by Pakistan. 1 more question. Whoever knows India in Iran(No NRIs),what are their opinion.
 
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