In News
- Recently, delegation-level talks between Iran and India were held where both sides agreed on continued cooperation for the development of the Shahid Beheshti terminal of the Chabahar port. Â
Major highlights of the meeting
- Bilateral relations:Â
- India and Iran discussed the entire gamut of bilateral relations including political, economic, cultural, and consular engagement.
- Both countries exchanged views on regional and international issues including Afghanistan.
- Joint Comprehensive Plan of Action was also discussed in the meeting:
- It is also known as the 2015 Iran nuclear agreement.
- Iran agreed on a long-term deal on its nuclear programme with a group of world powers known as the P5+1 (the US, UK, France, China, Russia and Germany).
- Under it, Iran agreed to significantly cut its stores of key components for nuclear weapons like centrifuges, enriched uranium and heavy-water. Â
About Chabahar PortÂ
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India-Iran relationsÂ
- Diplomatic relationship:Â
- It was established in 1950 with the friendship treaty after which the visits on the ministerial level have increased.
- Commercial ties:
- India-Iran commercial ties were traditionally dominated by the Indian import of Iranian crude oil.Â
- In 2018-19 India imported USD 12.11 billion worth of crude oil from Iran.
- India had stopped buying oil from Iran after the US administration imposed tough sanctions on Iran.Â
- Iran is keen on re-starting oil supplies to India and has even offered some concessions on the delivery of crude.
- Trade:
- The bilateral trade during 2019-20 was USD 4.77 billion, a decrease of 71.99 per cent as compared to the trade of USD 17.03 billion from 2018-19.
- Indian exports to Iran between 2011-12 and 2019-20 have grown by 45.60 per cent.
- India’s major exports to Iran include rice, tea, sugar, soya, medicines/pharmaceuticals, man-made staple fibers, electrical machinery, etc.Â
- Major imports from Iran include inorganic/organic chemicals, fertilizers, cement clinkers, fruits and nuts, leather, etc.Â
- Both countries are negotiating a Preferential Trade Agreement, on which five rounds of talks have been held so far.Â
- People to people contacts:
- There is a high level commitment in both countries to promote and facilitate people to people contacts.Â
- Indian pilgrims visit the Shi’a pilgrimage circuit in Iran (Qom, Mashhad, Hamedan) and Iraq (Najaf and Karbala) every year.Â
Way Forward
- India and Iran need to rebuild their ties affected adversely by recent global events.
- India must try to remain politically engaged with Iran for a better appreciation of each other’s sensitivities and compulsions and mutual interests.
- It is extremely important for India to take the lead in creating an institutional structure with Iran and Afghanistan and pursue the Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline project to ensure energy security.  Â
India’s Overseas Port Investments
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Source: TH