India Iran Relations -Why India Need Iran,Significance [Burning Topic IAS ] – In this post We Will discuss About various Dimensions Of India And Iran Relations .India Iran Relations -Why India Need Iran,Significance [Burning Topic IAS ]

  • Why India Need Iran
  • Significance Of Iran For India
  • Why Iran Need India And Its Significance for Iran
  • Why USA Want To Crush This Deal
  • Future Of India With Iran

Recent Times India And Iran Bilateral Ties 

  • Oil And Gas Agreement
  • Main Outcome of India Iran Relation is – Chabahar Port Agreement between India And Iran
  • India, Afghanistan and Iran signed a trilateral trade treaty for developing the port project and beyond.
  • In 2015, India liberalized its visa policy for Iran and struck it off the prior referral category (PRC) of countries.
  • There was a MoU on provision of services by Indian Railways, including financing $1.6 billion, for Chabahar-Zahedan railway line.
  • India will invest in setting up industries from aluminum to urea plants in Chabahar.

India Iran Relations -Why India Need Iran,Significance [Burning Topic IAS ]

India Iran Relations -First Question Is why India Need Iran ?

  • India And Iran Are Now a very good Partner .
  • Mainly India Need Iran For Energy Security .
  • Iran is Big Supplier Of crude Oil To India .
  • But Now Iran is a Strategic Partner For India . Since 1990 For India Iran Importance Has Increased .

India Need For Iran To Reduce Influence Of Pakistan In West Asia

  • Pakistan is Big Supporter of Terrorism or Supplier of Terrorist In India .
  • India Want to Increase Its Influence on Afghanistan Also want to Marginalize Pakistan Influence over West Asia.
  • Iran Relations With India Will help India In Accessing Afghanistan And Central Asia .


  1. India is Iran’s second largest oil buyer after China.
  2. Iranian Economy Is Mostly Dependent On Oil Supply .

Problem In India And Iran Relations In Recent Time – due To China,USA,Russia 

  • Growing Saudi-India-US-Israel relations have irked Iran.
  • Warming Iran-Pak-China ties have annoyed India.
  • Slow Chabahar port development has annoyed Iran
  • Iran has indicated that the port will not be used exclusively by India and that China and Pak may be invited.


  1. Signed between Iran and P5+1 (the five permanent members of the U.N. Security Council and Germany) in 2015.
  2. Iran agreed to a joint comprehensive plan of action (JCPOA) in return for removal of the economic sanctions against it.
  3. The JCPOA drastically reduced Iran’s uranium enriching capacity & levels, enriched stockpiles and centrifuges. Besides, it provided for stringent inspection and monitoring by international agencies.

Why USA/Trump wants to trash the deal?

  1. The present deal doesn’t address (US ally) Israel’s concerns adequately.
  2. Moreover, Trump administration has never explicitly stated why it considers the JCPOA “the worst agreement in American diplomatic history”.

Trump has been hawkish towards Iran since he took over as President.

  1. Imposing new sanctions on its missile programmes and joining hands with its regional rivals in West Asia have been part of Trump’s Iran policy.

Possible ramifications of cancellation of the JCPOA

  1. Hardliners in Iran will make a political comeback which will lead to uncertainty and instability in West Asian geopolitics
  2. Threat of nuclear proliferation as Iran may resume its nuclear weapons programme.
  3. Since EU supports Iran, the withdrawal will hurt US-EU relations. The Trans-Atlantic Security Partnership will lead to secondary US sanctions against EU companies dealing with Iran.
  4. USA’s unilateral decision to withdraw will hurt its stature as a global leader.

Impact on India

Indian Diaspora

  1. Political instability in West Asia will undermine their security and remittances.

Crude Oil

  1. Iran accepts payment in Indian currency for its oil.
  2. India will have to depend more on Saudi Arabia and Iraq for oil supplies.
  3. Reduction of supplier diversity will make India more vulnerable to oil price shocks


  1. India could lose access to Chabahar port of Iran which is a strategic necessity for India’s access to Central Asia.


  1. This axis could get strengthened.
Way ahead for India
  1. India will have to maintain a fine balance between US, Israel and Saudi on the one hand and Iran on the other.
  2. India should make greater use of Euro-denominated transactions for its oil trade to minimise the adverse impacts.

India Iran Relations -Why India Need Iran,Significance [Burning Topic IAS ]

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