Iran and india relationship with united

Iran issue tests India’s foreign policy - The Hindu BusinessLine

iran and india relationship with united

On May 8, , President Donald Trump announced that the United States was withdrawing from the Joint Comprehensive Plan of Action. While India shares a good economical relationship with the US, it should not line up with the United States of America to leverage the US. The Modi government's move, under pressure from the United States, The US has pressured India on downgrading its relations with Iran for.

India–Iran relations

Under further US pressure that created obstacles on the issue of oil payments, the previous UPA government marginally cut down oil imports from Iran. With the US threatening to block foreign exchange transactions between the two countries, India at least put up a semblance of resistance by shifting to trade in local currencies of the respective countries and re-routing transactions through Turkey.

iran and india relationship with united

Before the situation got worse for India, ex-US president Barack Obama in signed the nuclear deal with Tehran and the restrictions were removed for resumption of normal trade between the two countries. India is again having to confront the dilemma of having to choose, or forced to go with, Washington by downgrading its trade with Iran.

iran and india relationship with united

Specifically, to counter growing Chinese power. But, again, all this comes with a price.

iran and india relationship with united

Stopping oil imports from Iran or even reducing it drastically can land India in a serious mess. Already, oil prices have hit the roof leading to increase in prices and general resentment with chances of the economy further slowing down.

India–Iran relations - Wikipedia

For a country that is yet to recover from demonetisation and problems in GST implementation, stopping or cutting down on Iran oil could be the last straw. Government officials have said they are looking for alternative arrangements but how reliable they will be and whether they can make up for the absence of oil from Iran is a moot point.

If India does indeed stop oil trade with Iran, the geo-political relationship with Tehran can take ages to repair. What makes the scenario even more painful is that India may end up ruining ties with a friendly country that has done it no harm.

iran and india relationship with united

In international forums, particularly at the Organisation of Islamic States, Iran has batted consistently for India. China, which Indians love to compare themselves with, has always maintained an independent foreign policy despite close economic ties with Washington.

The India Iran US quandary ! Why India must stand by Iran

On the contrary, the Indian government for all its bravado, appears to be buckling under US pressure. The writer was formerly Editor at Aljazeera based in Doha Published on.

Appraising of the situation vis-a-vis Iran, a senior US official told the New York Times that The Indians are emerging from their non-aligned status and becoming a global power, and they have to begin to think about their responsibilities. They have to make a basic choice. Our beef with Iran is not the pipeline".

iran and india relationship with united

India alone plans to invest 20 Billion US dollars towards development of Chabahar port. Iran plans to use Chabahar for trans-shipment to Afghanistan and Central Asia, while keeping the port of Bandar Abbas as a major hub mainly for trade with Russia and Europe.

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  • Iran issue tests India’s foreign policy

India, Iran and Afghanistan have signed an agreement to give Indian goods, heading for Central Asia and Afghanistan, preferential treatment and tariff reductions at Chabahar.

Iran is, with Indian aid, upgrading the Chabahar-Milak road and constructing a bridge on the route to Zaranj. The Chabahar port project is Iran's chance to end its US-sponsored economic isolation and benefit from the resurgent Indian economy.

A strategic partnership between India, Iran and Russia is intended to establish a multi-modal transport link connecting Mumbai with St Petersburg, providing Europe and the former Soviet republics of Central Asia access to Asia and vice versa.

The route primarily involves moving freight from IndiaIranAzerbaijan and Russia via ship, rail and road.

The objective of the study was to identify and address key bottlenecks.