India aiming to boost ties with Iran

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Sumeet Kumar Sharma, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur


 

Iran is an important country for India for its energy security as well as to get access to oil and gas-rich Central Asian nations. To further boost ties with Iran Indian External affairs minister Sushma Swaraj went for a two-day visit to Iran. The focus of visit was on raising India’s oil imports and enhancing trade with the powerful Persian Gulf nation.

India has already lined up $20 billion as investment in oil and gas as well as in petrochemical and fertiliser sectors there. It imports close to 12 million tonnes of crude from Iran and it is looking at increasing the oil import from Iran.

Iran ended free shipping of crude oil to India and terminated a three-year-old system of payment for half of the oil dues in rupees. The bilateral talk holds the key to get rid of these roadblocks. Apart from these the talk will incorporate deliberation on bilateral cooperation in combating terrorism, situation in Afghanistan and in Syria.

Indian firms have been reluctant to invest in Iran till now, as there was a fear of being sanctioned by the US and Europe. The same was deterring New Delhi from claiming rights to invest nearly $7 billion in the biggest gas discovery ever made by an Indian firm abroad. But after the lifting of sanctions, India is making a renewed pitch for rights to develop 12.8 trillion cubic feet of gas reserves OVL had found in 2008.

Surely the bilateral talk with Iran will go a long way in fortifying the bond with them and will help build a strategic partnership that will render growth for both the nations.

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