Both countries will not have any determinental effect if they were to become enemies - I mean they do not have any power to invade India's sphere of influence. Israel's impact on India will still be larger than Iran. But if Israel and Iran goes to war, India will stay neutral.
for example, Iran's Ghadr-101 is already 100% operational, has a range of 1500km plus, while india's best missile is the 300km Prithvi. Agni-III is just a joke, maybe another 30 years to go for more tests, Agni-II is still not fully operational.
india should accept the fact that its armed forces is one of the weakest in the region, plain and simple.
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