Parth Raman and Pegah Mostajeran
Iran’s significance to India is deeply rooted in shared historical, cultural, and civilizational ties that date back centuries. From the time of the Mughal Empire to the modern era, Iran’s influence on India’s art, architecture, language, and literature has been profound. Persian served as the court language of the Mughals for over three centuries, leaving a lasting imprint on Indian culture. Today, this shared heritage forms a strong sociocultural foundation for bilateral relations. Iran’s geographical proximity to India further enhances its relevance as a strategic partner, with the two nations acting as cultural bridges between South Asia and the Middle East.
Sociologically, the relationship between the two countries has been bolstered by the significant presence of the Indian diaspora in Iran and cultural exchanges that have fostered mutual understanding. The shared spiritual traditions, including Sufism and Shia Islam, have deepened people-to-people connections. Furthermore, Iran’s cultural festivals, literature, and cinema enjoy widespread popularity in India, reflecting the enduring warmth in cultural ties. This sociological closeness is a crucial element that underpins diplomatic and economic interactions, ensuring that the bilateral relationship is not limited to transactional exchanges but is enriched by shared values and traditions.
From a geopolitical perspective, Iran occupies a dominant position in India’s strategic calculus, serving as a gateway to Central Asia and Europe. The Chabahar Port, a flagship project in Iran-India cooperation, exemplifies this strategic importance. Beyond trade and connectivity, Iran is a vital partner in India’s quest for energy security, supplying oil and gas to fuel India’s growing economy. The collaboration also extends to counterterrorism and regional stability, as both nations have a shared interest in combating extremist ideologies and fostering peace in Afghanistan.
The upcoming introduction of a BRICS currency adds another dimension to Iran-India relations, positioning both nations as pivotal players in shaping the future of global finance. As BRICS nations seek to reduce dependency on the U.S. dollar and promote alternative trade mechanisms, Iran’s role as a resource-rich nation and India’s position as a major economic powerhouse become critical. The adoption of a common currency within BRICS could revolutionize global trade dynamics, offering both nations an opportunity to deepen economic ties while championing a multipolar world order. For India, this also represents a chance to strengthen its leadership in the Global South, with Iran as a key ally in this vision.
Energy Cooperation and Strategic Connectivity
Energy cooperation stands as the most crucial aspect of Iran-India relations. With the world’s second-largest reserves of gas and the fourth-largest reserves of oil, Iran has been a significant source of energy for India, an energy-hungry nation with a growing economy.
One of the important projects in the Iran-India bilateral relations is the construction of the Chabahar Port in southeastern Iran. This eases the process of bridging the gap to help India access Central Asia and Afghanistan without having to go through the territory of Pakistan. The importance of Chabahar is that it’s located in a position that is useful for India’s International North-South Transport Corridor (INSTC), which aims to lower costs and time needed for trade between India, Russia, and Europe.
This also aligns with Iran’s ambition of turning into a regional trade hub. For India, Chabahar fortifies its strategic presence in the region and counterbalances China’s influence through the Gwadar Port in Pakistan under the China-Pakistan Economic Corridor (CPEC). Despite their potential, the actual bilateral trade remains below its capacity. In 2023, sanctions and banking restrictions hurt trade volume. However, significant avenues are there for diversification. India exports pharmaceuticals, machinery, and agricultural products to Iran, while importing oil, urea, petrochemical products, and raw materials.
Both countries can also assist each other in achieving the long-term goal of utilizing renewable energy sources such as solar, wind, and green hydrogen, as well as gaining broader access to regional and global markets. In this context, senior officials from both countries expressed optimism about the prospects for economic cooperation between Iran and India during the BRICS summit last month. Iran’s President, Pezeshkian, emphasized Iran’s readiness to expand ties with India and expedite agreements, especially regarding the development of Chabahar Port. Similarly, Modi, India’s Prime Minister, stressed the deep-rooted cultural and historical connections between the two nations, identifying Chabahar Port as an important element of their cooperation. Both leaders view the port’s development as a vital factor for enhancing bilateral and regional relationships.
On the other hand, this transit corridor faces a complicated U.S. policy response because, although the United States views it as a countervail to the influence that Pakistan and China have in the region, it is wary of the closer ties between India and Iran and the potential economic benefits for Iran. Subrahmanyam Jaishankar, India’s Minister of Foreign Affairs, has emphasized explaining the agreement’s advantages to the U.S. and urged other nations to adopt a broader perspective on the issue. Similarly, the Indian ambassador to Iran underscored Chabahar Port’s role as a gateway for regional connectivity rather than merely a bilateral project between India and Iran.
Suggestions for Strengthening the Relationship
To ensure the success of Iran-India relations, both nations must adopt a multifaceted approach that transcends energy and trade. Expanding collaboration in renewable energy, scientific research, and education can deepen ties. Joint investments in technology transfer and green hydrogen projects can serve as flagship initiatives to combat climate change while advancing mutual economic goals.
On the diplomatic front, India can leverage its neutral stance to mediate between Iran and Western nations, encouraging constructive dialogue to ease sanctions. Establishing a robust mechanism for financial transactions, possibly through the BRICS framework, can mitigate the challenges posed by global sanctions.
Furthermore, cultural diplomacy must remain a cornerstone of the relationship, with increased exchanges in academia, cinema, and tourism to foster people-to-people connections. By building trust and maintaining open channels of communication, India and Iran can create a resilient partnership that not only benefits both nations but also contributes to regional stability and global prosperity.
Mr. Parth Raman is a Legal Consultant and Public Policy Researcher associated with numerous International Organisations having a keen interest in Diplomacy. He is pursuing a Master’s in Human Rights and Multi-Level Governance from the University of Padua, Italy
Pegah Mostajeran is a law graduate from Iran. She is pursuing a Master’s in Human Rights and Multi-Level Governance from the University of Padua, Italy.
Very complete👌