Friday 18 September 2015

INDIA-IRAN TIES: THE WAY AHEAD


"Few people have been more closely related in origin and throughout history than the people of India and the people of Iran"
Jawahar Lal Nehru
                                                                                                      
The relations between India and Iran can be traced back to the Indus Valley Civilization's links with the latter. For instance, Indus seals have been excavated at Kish, Sasa and Ur in Iran. During the pre-Indo-Aryan civilisation period, Indians and Iranians lived together with a common language in Oxus Valley in Central Asia. Indian Vedas and Iranian Avesta have similarities as well ( they give the same reason for migration of Aryans, i.e., flood). Sanskrit and Persian have common roots.
The historical ties between the two countries were suspended due to the onset of British colonisation of India, and later, the Partition of the country in 1947.

Cold War Period

Iran had allied with the Western alliance during the Cold War Era. While, India followed a policy of non-alignment, with leanings towards the erstwhile Soviet Union (Twenty Years' Treaty of  Friendship and Cooperation, 1971). With the Islamic Revolution in Iran in 1979, Iran grew hostile towards USA; India had also not supported the revolution. Furthermore, India had also grown closer to Iraq during the Iran-Iraq war (1980-88). Therefore, this period was marked by rough times in the relations of India and Iran.

Post Cold War Era

Concerns about International Terrorism

The 1990s marked a major overhaul in their relations when India and Iran supported the Northern Alliance in Afghanistan against Taliban. This development is of profound importance, highlighting the similar stand of India and Iran against terrorism.

Iran and India have the largest Shia population and the fourth largest Muslim population in the world. This is why both have major concerns over Sunni-Shia conflict, especially, in Pakistan. This also explains why India and Iran supported the anti-Taliban collaboration in Afghanistan. Both countries are concerned about the Sunni-Islamist militias in South Asia and Wahhabi power in Asia and the Middle-East.

Cooperation between the two countries is essential at this crucial moment in the international realm due to growing threats like that of  the ISIS or ISIL, which affect every state and the sooner countries unite to combat this threat, the better.

On UN Reforms

India and Iran have supported the reform of the United Nations Security Council. This could give greater weight to India's bid to become a permanent member.

The Iran Nuclear Deal and its Impact on India-Iran Ties

In order to prove the genuineness of its friendship with the USA, India had voted against Iran at the IAEA in 2005, 2006 and 2009. Later, Iran was referred to the UNSC to have sanctions imposed on it. The Bush administration had also given an option to India to either support its resolution against Iran in order to have increased cooperation from USA with regard to the Indo-US nuclear deal. India was also made to withdraw from its pipeline project with Iran.

Iran signed the Joint Comprehensive Plan of Action in 2015 at Vienna, with the P5+1 (USA, France, Britain, Russia, China plus Germany).  This deal prevented the threat that the world had apprehended that Iran was a few months away from acquiring enough enriched uranium to build a bomb.

As far as the terms of the new deal of 2015 are concerned, Iran agreed to transform the nuclear plant at Fordo into a scientific research centre. It also agreed on cutting back  half of its centrifuges at a plant in Natanz. Iran has to limit its uranium enrichment to 3.7 per cent and cap its stockpile of low enriched uranium by 98 per cent (to 300 kilograms) for 15 years.  It has to rebuild the nuclear plant at Arak so as to not produce weapons grade plutonium. The reactor's spent fuel (for uranium enrichment) will be shipped out of the country and Iran will not build additional reactors for the next 15 years. This will, therefore, cripple Iran to make any nuclear bomb, at least for some years. US President Obama had announced the possibility of lifting conventional arms embargo after 5 years and ending missile sanctions after 8 years.

While the major beneficiaries of the nuclear deal are the US, who has reinforced its position as a superpower and Israel and Saudi Arabia, who could not withstand Iran's rise, the immediate impact of the deal on India lies in her interests not to have a nuclear state in its vicinity. Had Iran succeeded in building nuclear bombs, it would have initiated an arms race in the Gulf, thereby, threatening India's security as well.
Also, with the change of Western approach towards Iran, India is at ease to further
strengthen its relations with it.

Strategic Importance

Iran is India's gateway to Afghanistan, Central Asia and Caucasus. It will also help India in countering Chinese influence in Central Asia, and allow the country to have a better say in issues concerning the region.

Economic Ties

The SAGE Pipeline (South Asia Gas Enterprises Ltd., the Indian company leading the project) or the Middle East to India Deepwater Pipeline (MEIDP) is a project to build a 1,400 km long pipeline with a depth of over 2 miles underwater. It is projected to double the natural gas imports to India, thereby, diversifying as well as securing India’s energy imports, if passed. It will originate at Chabahar port, at the southern coast of Iran.
The challenges facing this endeavour cannot be ignored. Firstly, the pipeline would have to bypass the land route of Pakistan. Secondly, it would run on the Owen Fracture Zone, which is an earthquake prone zone.

If we draw our attention to India's odyssey for energy security, Iran has the second largest natural gas reserves after Russia. However, due to lack of investments and imposition of sanctions, Iran could not optimally harness its energy resources. Therefore, the removal of sanctions would lead to flow of Indian investments to Iran, which would in turn boost India's growth. Iran also provides the closest and cheapest energy supply to the country. The lifting of the trade embargoes would enable Iran to modernise its oil and natural gas infrastructure which would provide the possibility of increased revenues for Iran in the coming years, provided there is sufficient demand.

A Memorandum of Understanding was recently signed between India and Iran, according to which India would develop Iran's North South Corridor. One major concern of economic experts in India would be the trade deficit between the two because India's exports to Iran are very low as compared to its imports from Iran. India should therefore, strive to balance its trade practices with Iran, by diversifying and seeking better terms in Indian exports

Iran and the Persian Gulf

Iran influences the stability of maritime access to Persian Gulf through the narrow Strait of Hormuz. Any disruption in this area would lead to a spurt in oil and natural gas prices, which could lead to a global economic crisis. This is further established by analysing Iran's influence in OPEC as it is the second largest exporter of crude oil in OPEC after Saudi Arabia. Therefore, it is in India's interests that there is stability in the Persian Gulf region, which can be maintained through healthy ties between the two countries. Stability in the region is also conducive to ensure India's stable access to Central Asia.

Solving the problem regarding disputes with Pakistan do not seem to be answered by the India-Iran partnership in the immediate sense. Iran’s stance is against India on the Kashmir issue and it also aided Pakistan during the Wars in 1965 and 1971. But as the Neo-functional theory of International Relations (by Ernst Haas) suggests the 'concept of spillover', i.e., cooperation in some areas could lead to cooperation in other areas as well, is a possible solution.

Kritika Kaushik

No comments:

Post a Comment