XAVIER INSTITUTE OF

SOCIAL SERVICE

TOPIC: Caught Between Friends

Name of the Students: Submitted to:

Anshu Reshma Sorein-58 Dr. Arup Mukherjee
Alok John Kujur-59
Shivanand Mani Mishra-60
 ACKNOWLEDGMENT

We would like to express our special thanks of gratitude to our

teacher “Dr. Arup Mukherjee” for giving us the opportunity to
present on the topic “Caught between friends”. Sir has been of
constant support throughout the project, helping in the best possible
manner. The project helped us in doing a lot of research thereby
enriching our knowledge base.
We would also like to thank each and everyone who contributed
in the completion of this project. We are thankful for the guidance,
criticism and friendly advice during the project.

THANK YOU
Introduction

The tensions between Iran and the United States are escalating by the
day. Iran President Hassan Rouhani has said the country is facing
"unprecedented pressure" from international sanctions, calling it a
"war unprecedented in the history of Islamic revolution".Meanwhile,
the US on its part ordered a partial evacuation of its Baghdad embassy
in Iraq.

Experts monitoring the situation have said a potential US-Iran conflict

would prove to be catastrophic for the entire region, and India can
also get pulled in to the situation, and it is going to affect india in both
political and economic terms.

At this point, the US has said it does not want war with Iran
"fundamentally". Trump has also said he expects that the pressure
exerted on Iran will bring it back to the negotiating table.

Iran, on its part, has been stating that it won't negotiate with the US,
but has also made it clear that the country does not want a war.

At the same time, leaders from both sides have claimed that they are
ready in case a conflict breaks out.

It is in the realm of India’s crude imports that the issue of American

arbitrariness comes in. Together, Iran and Venezuela accounted for
roughly one-fifth of India’s cumulative crude imports. India is the
world’s third largest energy importer (after the USA and China). India
imports over 220 million tonnes or roughly 80 percent of the crude it
processes.
 Political and Trade Relation Between

India and Iran (Import and Export)

India’s relations with the Islamic Republic of Iran over the last few
years have been marked by various hurdles. These pertained to the
unresolved payment imbroglio for the import of Iranian crude oil;
inability to streamline trade between the two countries and various
other issues. These limitations have cropped up ever since the United
States imposed economic sanctions on Iran for its controversial
nuclear programme. The sanctions have led to negative impacts on
India’s overall bilateral relations with Iran. This is evidenced by the
visible fluctuation in the bilateral trade figures for the last few years.
While Indian exports to Iran have witnessed an increasing trend,
similar is not the case with that of imports from Iran. However, with
the interim nuclear accord signed in 2013 between Iran and the West,
there had been some improvements in the overall bilateral ties
between India and Iran. Simultaneously, the newly elected
government in New Delhi is likely to give more impetus to the
energy-driven relations between the two countries. Having said that,
the ties between the two countries would largely depend on how far
both the countries could manoeuvre through the US pressures, in case
the ongoing talks on nuclear standoff fails to bring any solution.
Tellingly, the role that India and Iran could play in Afghanistan is
going to be one of the most challenging tasks for both the countries.
The meeting between Prime Minister and President of Iran Dr Hassan
Rouhani in Ufa, Russia on 9 July 2015 on the margins of the SCO
Summit provided a roadmap for developing India-Iran bilateral
relations and consulting closely on regional issues. This meeting was
followed by the visit of Minister of Foreign Affairs of Iran in August
2015, which built on the momentum generated at Ufa. External
Affairs Minister co-chaired Joint Commission Meeting with Minister
of Economy and Finance of Iran on 28 December 2015 in New Delhi.
In the Joint Commission Meeting, which was preceded by meetings of
Joint Working Groups on Trade, Infrastructure and Energy, several
decisions to strengthen bilateral economic cooperation were taken.
These decisions pertain to India’s involvement in the Chahbahar port
development and exploration of natural gas in Farzad B field etc.
Iran has always been one of India’s main suppliers of oil, second
only to Iraq and Saudi Arabia, with exports that totalled more than 27
million tonnes last year. The figures make India Iran’s biggest buyer
after China, and as a result, a target for the U.S. which has declared a
campaign to “isolate Iran” after the Trump administration withdrew
from the multilateral nuclear deal. For India, which has been told
along with other buyers to take oil imports to “zero” by the cut-off
date of November 4, its decisions on procuring Iran oil this point
onwards is not so much about securing energy as it is about securing
India’s standing in the world. If it rejects U.S. pressure, it risks
sanctions as well as incurring the displeasure of its all-powerful friend
and defence partner. If it yields, it risks its relationship with
traditional partner Iran, access to important trade routes through
Chabahar and the International North South Transport Corridor
(INSTC), as well as its international reputation.
 Political and Trade Relation Between
USA and Iran (Import and Export)

US has 78% share in fdi inflows to india.infrastructure. it

telecom sector ,pharmacutecals and bio technology possess
immense potential for progressing economic co operation
between india and usa

Emergence of business process outsourcing. US companies

are taking advantages offered by india’s IT sector. India offers
huge cost benefits to the US MNCs by offering them large no.
of trained it professionals.

Microsoft, Intel, IBM corporation etc indentified india as their

outsourcing partners. A huge no of people of Indian origin are
residing in US and are among the highly educated class of the
US

India’s share in US trade is 24th in US export and 18 in US

import

India’s Main Exports To US Are:

 Precious stones
  Metals (worked and gold diamond jwelery
 Woven and knit apparels
 Textile articles
 Textile floor covering
 Organic chemicals etc
And India imports sophisticated machinery, electrical
machinery, medical and surgical equipment & small
aircrafts

Signing of “India-us economic dialogue” by Indian PM Shri

Atal Bihari Vajpayee & US president Bill Clinton in 2003
aimed at deepening the India American relationship by regular
dialogue and engagements.

According to a figure, US exports to and imports from India

in 2003 totalled US$ 5 Billion & USD 13.1 Billion

Steps Taken by Govt. Of India To Boost the Foreign

Investment in India Are:

 Increase in foreign ownership limit

 Reduction of regulatory charges
 Moving to unified licencing
 Spectrum Policy
 Political and Trade Relation Between

USA and Iran (Import and Export)

1953: OVERTHROW OF MOSSADEQ

Us and British intelligence agencies orchestrate a coup to oust
Iran’s democratically elected prime minister, MOHAMMAD
MOSSADEQ. The secular leader had sought to nationalize Iran’s oil
industry.
1979: IRANIAN REVOLUTION
The US-backed shah of IRAN Mohammed Reza Pehlevi, is
forced to leave the country on 16january following months of
demonstration and strikes against his rule by secular and religious
opponents.
1979-81:US EMBASSY HOSTAGE CRISIS
The US embassy in Tehran is seized by protesters in
november1979 and American hostages are held inside for
444days.The final 52 hostages are freed in January 1981, the of US
President Ronald Reagan’s inauguration.
1988: IRANIAN PASSENGER PLANE SHOT DOWN:
The American warship USS VINCENNES SHOOTS
DOWN AN IRAN AIR FLIGHT in the gulf on 3july killing all 290
people on board. Most victims are IRANIAN PILGRIMS on their
way to Mecca, The US says the airbus A300 was mistaken for a
fighter jet.
2002: NUCLEAR FEARS AND SANCTIONS
 In 2002 an Iranian opposition group reveals that IRAN IS
DEVELOPING NUCLEAR FACILITIES including a uranium
enrichment plant.
The US accuses Iran of a clandestine nuclear weapons program,
which Iran denies.
2013-16: CLOSER TIES & NUCLEAR DEAL
In September 2013, a month after IRAN’S new moderate president
HASSAN ROUHANI takes office. He and US President BARACK
OBAMA speak,
The first such top-level conversation in more than 30 years.
Then in 2015, after a flurry of diplomatic activity, IRAN agree a
Long-Term deal on its nuclear program with
a group of world powers knows as P5+1- the US, FRANCE, CHINA,
RUSSIA and GERMANY.
Under this, Iran agrees to limit its sensitive nuclear
activities and allow in international inspection in return for the lifting
of crippling economic sanctions.
2019: TENSION IN THE GULF
In May 2018, US President DONALD TRUMP abandons
the nuclear deal, before reinstating sanctions against IRAN and
countries that trade with it.
Relations between the US and IRAN worsen, The US sends an
aircraft carrier strike group and B-52 bomber to the gulf because of
what it calls “troubling and escalatory indications” related to IRAN.
Then in May and June 2019, explosions hit six oil tankers in the Gulf
of Oman and the US accuses Iran.
 And on 20 June, Iranian forces shoot down a US military drone
over the strait of Hormuz