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Over the past many centuries Iran and India have very close relations as India describes Iran as “proximate neighbourhood.” India is aware of the importance of Iran which has a strategic position with a long coastline along the Persian Gulf, including the narrow entrance to the Gulf at the Straits of Hormuz – a region within the security parameter of India
Iran is also a major source of energy and hydrocarbon supplies while provides opportuntiies for Indian business and investment, and as both societies seek socio-economic transformation, the scope for technical and economic cooperation with Iran is self-evident. Iran is also important to combat the threats faced from terrorism and extremism require intensified dialogue and cooperation between our two governments.
In terms of geo-strategic interests India’s relationship with Iran has primarily two dimensions the energy and Afghanistan both primary concerns for New Delhi given that the situation is quite depressing in case sanctions against Iran are implemented in full force for this would certainly curtail engagement to a great extent, moreover the loss to Indian private companies as Reliance Industries which had been refining crude for Iran have also been substantial due to sanctions. India imports 18 million tonnes of oil from Iran out of a total of 140 million tonnes annually and India 's investment in Iran 's energy sector is around $100 million.
India Iran cooperation in Afghanistan in the event of a pro Pakistan Taliban biased regime coming into power in the country, both New Delhi and Tehran would have to refurbish their Northern Alliance dossiers and reset the relationship in quick time. While India has been interested in Iran ’s upgrading of the Chahbahar port, transforming this physically without some financial incentives in terms of loans and grants is not likely in the days ahead. However the improvement of relations is not coming at an opportune time when Iran has come under sanctions by the US.
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India, like Iran , is supportive of efforts of the Afghan Government and people to build a democratic, pluralistic and peaceful Afghanistan . Neither countries wish to see the prospect of fundamentalist and extremist groups once again suppressing the aspirations of the Afghan people and forcing Afghanistan back to being a training ground and sanctuary for terrorist groups,
Despite the conflictual situations outlined earlier in the debate, sustained engagement between India and Iran is essential. For this high level summits, continued commitment to support each other’s joint endeavours and holding regular dialogue through India-Iran Joint Commission the meeting that is being held at present on 14-15 September 2019.
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Despite challenges that are witnessed from time to time thus both countries are committed to engagement which is a positive sign.