The Editorial Analysis- Ties Reset

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India-Iran Relations- Relevance for UPSC Exam

GS Paper 2: International Relations- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Recently, Iranian Foreign Minister Hossein Amir Abdollahian visited India for the first time. Visit o Iranian Foreign Minister has many implications for bilateral relations.

Islamic Countries including took a strict stance against the offensive comments made in India on the Prophet.
The Iranian visit comes a week after that of Israeli Defence Minister Benny Gantz.
Iranian Visit coincides with the meeting of the Board of Governors of the IAEA in Vienna, which has passed strictures against Iran for its nuclear programme.
Ongoing Russia Ukraine War and western sanctions led to oil export embargo on Russia, providing an opening Iranian oil to get International Markets like India.

For India: This is the first visit by a member of the 57-member Organisation for Islamic Cooperation, which took offence to comments made in India on the Prophet.
- His visit provides with an opportunity for New Delhi to project that it has successfully assuaged the Islamic world with the actions of the ruling BJP against its spokespersons.
- India and Iran have discussed further operationalising the Chabahar port, where goods to Afghanistan were sent before the government in Kabul fell last year.
For Iran: the visit would be portrayed as a show of support from a powerful country in the backdrop of recent IAEA Meeting in Vienna.
- Against the backdrop of the Russian war in Ukraine, and western sanctions, Iran has also been keen to convince New Delhi to restore its crude oil purchases.
- India cancelled oil purchase from Iran in 2019, after threats of U.S. sanctions.
- India called for the U.S. and Europe to allow Iranian and Venezuelan oil back into the international market if they want India to lower Russian oil imports, accusing the West of “squeezing” all alternative sources for India.
On Afghanistan: In addition, Iran and India discussed the situation in Afghanistan under the Taliban, just days after an Indian envoy made the first outreach to Kabul.

Unmet promises: Instead of increasing Indian oil imports, investments in developing reserves, building up the Chabahar rail project and scaling up trade, India has drastically cut its Iranian engagement due to sanctions.
- On the other hand, Iran has looked to China for more infrastructure investment.
Unrealized trade potential: Bilateral trade dropped to just over $2 billion (2020-21) from $17 billion (2017-18).
Diplomatic Challenges: India-Iran Bilateral ties appeared to have been hit by-
- New Delhi’s surprise decision to join the Israel-India-UAE-U.S. group, portrayed as an “anti-Iran” coalition.
- Perceptions of Iranian support to Yemeni Houthis behind the drone attack on a UAE oil facility where an Indian was among those killed.

Abdullohaian’s visit, and a possible visit by Iranian President Ebrahim Raisi, may be the start of a reset of traditionally strong ties even if it is one that is buffeted by developments in other parts of the world.