IndiaIran relations

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Iran-India relations Map indicating locations of Iran and India

Iran
India
Prime Minister of India Narendra Modi (centre) with President of Iran Hassan
Rouhani (left) and Supreme Leader Ali Khamenei, in Teheran .

IndiaIran relations are the bilateral relations between the countries India and
Iran. Independent India and Iran established diplomatic relations on 15 March
1950. During much of the Cold War period, relations between the Republic of
India and the erstwhile Imperial State of Iran suffered due to different political
interestsnon-aligned India fostered strong military links with the Soviet Union
while Iran enjoyed close ties with the United States.[1] Following the 1979
revolution, relations between Iran and India strengthened momentarily. However,
Iran's continued support for Pakistan and India's close relations with Iraq during
the IranIraq War impeded further development of IndoIranian ties.[2] In the
1990s, India and Iran supported the Northern Alliance in Afghanistan against the
Taliban regime. They continue to collaborate in supporting the broad-based antiTaliban government led by Ashraf Ghani and backed by the United States. The
two countries signed a defence cooperation agreement in December 2002.[3]

Even though the two countries share some common strategic interests, India and
Iran differ significantly on key foreign policy issues. India has expressed strong
opposition against Iran's nuclear programme and whilst both the nations
continue to oppose the Taliban, India supports the presence of NATO forces in
Afghanistan unlike Iran.[4] Iran is the second largest supplier of crude oil to India,
supplying more than 425,000 barrels of oil per day, and consequently India is
one of the largest foreign investors in Iran's oil and gas industry.[5]

In 2011, the US$12 billion annual oil trade between India and Iran was halted due
to extensive economic sanctions against Iran, forcing the Indian oil ministry to
pay off the debt through a banking system through Turkey.[6][7]

According to a BBC World Service Poll conducted at the end of 2005, 71% of
Iranians viewed India's influence positively, with 21% viewing it negatively, the
most favourable rating of India for any country in the world.[8] Also, due to Iran
being on good terms with both India and Pakistan, Iran has offered to serve as a
mediator between the two.[9]

Contents

1 Current relations
1.1 Economic relations
1.1.1 Oil and Gas
1.1.2 Renewed increase in oil imports
1.1.3 Iran's Nuclear Interests
1.2 Infrastructure
1.2.1 North-South Transport Corridor
1.3 Education
1.4 Religion
2 See also
3 References
4 Further reading
5 External links

Current relations
Empress Farah Pahlavi and Shah Mohammad Reza Pahlavi meet India's Prime
Minister Indira Gandhi during a state visit to India in 1970.
The Iranian Navy Band playing the Indian National Anthem during a ceremonial
parade at Bandar-e-Abbas port; 28 August 2015

India and Iran have friendly relations in many areas, despite India not welcoming
the 1979 Revolution. There are significant trade ties, particularly in crude oil
imports into India and diesel exports to Iran. Iran frequently objected to
Pakistan's attempts to draft anti-India resolutions at international organisations
such as the OIC and the Human Rights Commission.[10] India welcomed Iran's
inclusion as an observer state in the SAARC regional organisation.

A growing number of Iranian students are enrolled at universities in India, most

notably in Pune and Bengaluru. The clerical government in Tehran sees itself as a
leader of Shiites worldwide including India. Indian Shiites enjoy state support
such as a recognised national holiday for Muharram. Lucknow continues to be a
major centre of Shiite culture and Persian study in the subcontinent.

In the 1990s, India and Iran supported the Northern Alliance in Afghanistan
against the Taliban regime. They continue to collaborate in supporting the broadbased anti-Taliban government led by Ashraf Ghani and backed by the United
States. The two countries signed a defence cooperation agreement in December
2002.[11]

In August 2013, while carrying oil in the Persian Gulf, Iran detained Indias largest
ocean liner Shipping Corporation (SCI)s vessel MT Desh Shanti carrying crude
from Iraq .[12] But, Iran stood firm in its stand that the detention of the oil tanker
was purely a technical and non-political issue.[13]

On May 22, 2016, Prime minister Narendra Modi paid an official visit to Iran.[14]
The visit focused on bilateral connectivity and infrastructure, an energy
partnership, and trade.[15]
Economic relations
See also: IranPakistan gas pipeline

Iran's trade with India crossed US$13 billion in 2007, an 80% increase in trade
volume within a year.[16] Via third party countries like UAE this figure touches
$30 billion.[17]
Oil and Gas

In 200809, Iranian oil accounted for nearly 16.5% of India's crude oil imports.
[18] Indian oil imports from Iran increased by 9.5% in 200809 due to which Iran
emerged as India's second largest oil supplier.[19] About 40% of the refined oil
consumed by India is imported from Iran.[20] In June 2009, Indian oil companies
announced their plan to invest US$5 billion in developing an Iranian gas field in
the Persian Gulf.[21] In September 2009, the Mehr news agency reported a
Pakistani diplomat as saying "India definitely quitted the IPI (India-Pakistan-Iran)
gas pipeline deal",[22] in favour of Indo-US civilian nuclear agreement for energy
security.[23] Iranian officials however said India is yet to make an official
declaration.[22] In 2010, US officials warned New Delhi that Indian companies
using the Asian Clearing Union for financial transactions with Iran run the risk of
violating a recent US law that bans international firms from doing business with
Iranian banks and Tehran's oil and gas sector, and that Indian companies dealing
with Iran in this manner may be barred from the US.[24] The United States
criticises the ACU of being insufficiently transparent in its financial dealings with

Iran and suspects that much of their assets are funnelled to blacklisted
repressive organisations in Iran such as the Army of the Guardians of the Islamic
Revolution.[24] The United States Department of the Treasury also believes that
Iran uses the ACU to bypass the US banking system.[24] On 27 November 2010,
the Indian government, through the Reserve Bank of India, instructed the
country's lenders to stop processing current-account transactions with Iran using
the Asian Clearing Union,[24] and that further deals should be settled without
ACU involvement.[25] RBI also declared that they will not facilitate payments for
Iranian crude imports as global pressure on Tehran grows over its nuclear
programme.[26] This move by the Indian government will make clear to Indian
companies that working through the ACU "doesn't necessarily mean an Iranian
counterpart has an international seal of approval". As of December 2010, neither
Iran nor the ACU have responded to this development.[24] India objected to
further American sanctions on Iran in 2010. An Indian foreign policy strategist,
Rajiv Sikri, dismissed the idea that a nuclear armed Iran was a threat to India,
and said that India would continue to invest in Iran and do business.[27] Despite
increased pressure by the US and Europe, and a significant reduction in oil
imports from Persian oil fields in 2012, leading political figures in India have
clearly stated that they are not willing to stop trade relations altogether. To the
contrary, they aim at expanding the commodity trade with the Islamic republic.
[28]
Renewed increase in oil imports

While overall, Indias total volume of imported crude has only been rising slightly
from 3.2 million b/d in 2009-10 to 3.44 million b/d in 2012-13, imports from Iran
have basically been fluctuating around 250,000 b/d from 2012 to 2013 and thus
rising proportionally due to a halt for Iranian exports to Europe.[29] The recent
detainment of an Indian tanker by Iranian officials is unrelated to the oil
embargo,[12] but in an effort to save over USD 8.5 billion in hard currency, and
realising a 180-day waiver from US sanctions, India plans to increase Iranian
imports by 11 million tons for 2014, in addition to the two million tons of crude
oil shipped from Iran by June 2013, up 21.1% from last year.[30]
Iran's Nuclear Interests

India, despite close relations and convergence of interests with Iran, voted
against Iran in the International Atomic Energy Agency in 2005, which took Iran
by surprise. A "welcoming prospect" Ali Larijani was reported as saying: "India
was our friend".[31] Stephen Rademaker also acknowledged that India's votes
against Iran at the International Atomic Energy Agency were "coerced":[32]

"The best illustration of this is the two votes India cast against Iran at the
IAEA. I am the first person to admit that the votes were coerced."

The USA considers support from India which is on 35-member board of

Governors at the International Atomic Energy Agency crucial in getting a
sizeable majority for its proposal to refer the matter to the Security Council for
positive punitive action against Iran. Greg Schulte, US ambassador to the IAEA,
said "India's voice will carry particular weight...I hope India joins us in making
clear our collective concerns about Iran's nuclear programme". Schulte did not
deny that the Indo-US nuclear deal was conditional to India supporting the US on
the Iran issue. 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..[33] The Bush administration,
however, recognised India's close relations with Iran and tempered its position,
stating that India can "go ahead with a pipeline deal involving Iran and Pakistan.
Our beef with Iran is not the pipeline."[34]
Infrastructure

A highway between Zaranj and Delaram (Zaranj-Delaram Highway) is being built

with financial support from India.[35] The Chabahar port has also been jointly
financed by Iran and India.[36] India is helping develop the Chabahar Port, which
will give it access to the oil and gas resources in Iran and the Central Asian
states. By so doing, India hopes to compete with the Chinese, who are building
Gwadar Port, in Pakistani Baluchistan. Iran plans to use Chabahar for
transshipment to Afghanistan and Central Asia, while keeping the port of Bandar
Abbas as a major hub mainly for trade with Russia and Europe. 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.

Work on the Chabahar-Milak-Zaranj-Delaram route from Iran to Afghanistan is in

progress. Iran is, with Indian aid, upgrading the Chabahar-Milak road and
constructing a bridge on the route to Zaranj. India's BRO is laying the 213 km
Zaranj-Delaram road. It is a part of India's USD 750 million aid package to
Afghanistan. The Chabahar port project is Iran's chance to end its US-sponsored
economic isolation and benefit from the resurgent Indian economy. Along with
Bandar Abbas, Chabahar is the Iranian entrepot on the North-South corridor. 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.
North-South Transport Corridor
For more details on this topic, see North-South Transport Corridor.
North South Transport Corridor route via India, Iran, Azerbaijan and Russia

The NorthSouth Transport Corridor is the ship, rail, and road route for moving
freight between India, Russia, Iran, Europe and Central Asia. The route primarily

involves moving freight from India, Iran, Azerbaijan and Russia via ship, rail and
road.[37] The objective of the corridor is to increase trade connectivity between
major cities such as Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan,
Bandar Anzali and etc.[38] Dry runs of two routes were conducted in 2014, the
first was Mumbai to Baku via Bandar Abbas and the second was Mumbai to
Astrakhan via Bandar Abbas, Tehran and Bandar Anzali. The objective of the
study was to identify and address key bottlenecks.[39][40] The results showed
transport costs were reduced by "$2,500 per 15 tons of cargo".[40] Other routes
under consideration include via Armenia, Kazakhstan and Turkmenistan.
Education

There are about 8,000 Iranian students studying in India. India provides 67
scholarships every year to Iranian students under ITEC, ICCR, Colombo Plan and
IOR-ARC schemes. every year around 40,000 Iranians visit India for various
purposes.[41]

Kendriya Vidyalaya Tehran, the Embassy of India School, serves Indian citizens
living in Tehran.
Religion
Further information: Parsi

The world's largest population of Zoroastrians are the Parsi community in India.
When the Islamic Arabs invaded Persia, the local population which was unwilling
to convert to Islam or accept dhimmi status were persecuted to different regions
of the world with western India being the most significant. They sought refuge in
the western coast of India, ever since then India turned into their home holding
the highest numbers of Zoroastrians of the world. In the modern era, the Parsi
community have contributed significantly to India and Pakistan in the areas of
politics, industry, science, and culture. Prominent Indian Parsis include Dadabhai
Naoroji (three times president of Indian National Congress), Field Marshal Sam
Manekshaw, nuclear energy scientist Homi Bhabha, industrialist JRD Tata and the
Tata family. The Queen rock star Freddie Mercury was an Indian Parsi born in
Zanzibar. Zubin Mehta, a renowned conductor of Western classical music
orchestras is also a Parsi originally from Mumbai.[citation needed]
See also

India portal Iran portal

Foreign Relations of Iran

Foreign relations of India
Iran-Pakistan-India gas pipeline

India-Israel relations
Ibn Sina Academy of Medieval Medicine and Sciences
Indo-Persian culture
Hinduism in Iran
Buddhism in Iran
Zoroastrianism in India
Irani (India)

References

Nanda, Prakash. Rising India: Friends and Foes. Lancer Publishers, 2008. ISBN
9780979617416.
Hunter, Shireen. Iran's foreign policy in the post-Soviet era: resisting the new
international order. ABC-CLIO, 2010. ISBN 9780313381942.
Zeb, Rizwan (12 February 2003). "The emerging Indo-Iranian strategic alliance
and Pakistan". CACI Analyst. Retrieved 21 August 2013.
"India's Iran calculus". Foreign Policy magazine. Retrieved 1 January 2011.
Irans major oil customers, energy partners , Tehran Times
Solomon, Jay; Sircar, Subhadip (29 December 2010). "India Joins U.S. Effort to
Stifle Iran Trade". Wall Street Journal magazine. Retrieved 1 January 2011.
India paid $5 bn Iran oil debt in full: central bank, AFP, 4 September 2011
BBC World Service Poll GlobeScan
http://www.dawn.com/news/1300336/iran-offers-to-mediate-between-pakistanand-india
Indian Council of World Affairs(ICWA): Iran-India Relations: Exploring Co-operation
in Challenging Times Retrieved 6 August 2010
Zeb, Rizwan (12 February 2003). "The emerging Indo-Iranian strategic alliance
and Pakistan". CACI Analyst. Retrieved 21 August 2013.
Aneja, Atul (August 15, 2013). "Iran detains Indian tanker carrying crude, wants
undertaking". The Hindu. Chennai, India. Retrieved August 15, 2013.
"Indian ship detention purely a technical issue: Iran". The Hindu. Chennai, India.
17 August 2013. Retrieved 18 August 2013.
Iran, and greater West Asia. Retrieved 22 May 2016
"India to sign contract on Chabahar port during PM Narendra Modi's Iran visit".
Retrieved 2016-05-20.
PressTV:$13bn: new record in Iran-India trade Retrieved 2 November 2008

[1] Retrieved 14 August 2009

India raises crude imports from Iran, Press TV, 7 May 2009
India buys more Iran, less Saudi crude oil in '08/09, Reuters, 7 May 2009
Does US road to better relations with Iran pass through India?, Christian Science
Monitor, 18 July 2009
OVL, IOC, OIL to invest $5bn in Iran gas field, Times of India, 25 June 2009
"India has quit Iran gas pipeline deal: Report". The Times Of India. Archived from
the original on 10 September 2009.
"Energy Tribune". Energy Tribune. Retrieved 2012-09-08.
Solomon, Jay; Sircar, Subhadip (29 December 2010). "India Joins U.S. Effort to
Stifle Iran Trade". The Wall Street Journal.
"Indian stock market daily morning report (December 28, 2010, Tuesday)".
Archived from the original on 31 December 2010.
"RBI stifles Iran oil imports, says won't clear payments". The Times of India.
Corey Flintoff (22 July 2010). "In India, Few Takers For Tighter Iran Sanctions".
npr. Retrieved 9 March 2011.
S. Mehdudia (March 2013). "India not to halt imports from Iran". The Hindu
Iran Oil Desk Rhodium Group. Retrieved November 6, 2013
Iran oil imports to save India $8.5 bln Press TV-Text Only Version. Retrieved
November 6, 2013
"'India was our friend'". Rediff.com. Retrieved 2012-09-08.
India's anti-Iran votes were coerced, says former US official
Rajghatta, Chidanand (20 September 2005). "US-India nuclear deal under Iran
gun". The Times Of India.
Whitehouse archives
Pajhwok Afghan News, 100-km road asphalted in Nimroz with Indian assistance
India push for Iran's key port development Tehran Times 6 July 2010
"Despite U.S. opposition, Iran to be transport hub for North-South Corridor". The
Hindu. 31 May 2015. Retrieved 11 April 2015.
"Transport Corridor offers many opportunities for Indo-Russian trade". Russia &
India Report. 29 November 2012. Retrieved 11 April 2015.
"Dry Run Study of INSTC Trade Route". Business Standard. 20 March 2015.
Retrieved 11 April 2015.
"Iran deal spells good tidings for India". The Hindu. 10 April 2015. Retrieved 11
April 2015.

[2] Retrieved 6 January 2013

Further reading

Chopra, R.M. Indo-Iranian Cultural Relations through the Ages. published by

Iran Society, Kolkata.
Chopra, R.M. Indo-Iranian Cultural Relations in the 20th century. Indo-Iranica
Vol.57 (14)
Clawson, Patrick. (2005). Eternal Iran: Continuity and Chaos. ISBN 1-40396276-6. 2005. MacMillan.
Multiple authors (2004). "India". Encyclopdia Iranica. (series of entries that
cover Indian history and its relations with Iran)
Keddie, Nikki; Matthee, Rudolph P. (ed.). (2002). Iran and the Surrounding
World: Interactions in Culture and Cultural Politics. University of Washington
Press. ISBN 0-295-98206-3.
Tikku, G.L. (1971). Persian poetry in Kashmir 13391846. ISBN 0-520-09312-7
Section on Persian literature in India: Rypka, January (1968). History of Iranian
Literature. Reidel Publishing Company. OCLC 460598. ISBN 90-277-0143-1
Chopra, R.M., "The Rise Growth And Decline of Indo-Persian Literature", 2012,
published by Iran Culture House, New Delhi and Iran Society, Kolkata. 2nd Edition
published in 2013.

External links

Embassies

Official Embassy of India,Tehran

Further Reading

India-Iran Relations: A farewell to the gas pipeline?

US concerns not to sway India-Iran relations
India-Iran Relations Cannot Be Hostage To US
India-Iran Relations: Key Security Implications

[show]

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