Discuss how the U.S withdrawal from the Iran nuclear deal would impact India-Iran bilateral ties. (200 words)
Refer – Live mint
Enrich the answer from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
· The U.S withdrawal from the Iran nuclear deal is now expected to open up the possibility of the US Congress legislating more sanctions on Iran.
· These sanctions, like before, will also bring India-Iran ties to another challenging crossroads.
Implications for India-Iran ties
· Energy – Iran is now India’s third-largest supplier after Iraq and Saudi Arabia.
· A disruption through sanctions may affect India's energy trade ties with Iran.
· India and Iran have strategic interests in keeping the relationship sustainable.
· But it should be insulated from the impact of sanctions.
· Chabahar port – The engagement between India and Iran on Chabahar has gathered momentum.
· It is both a financial and a strategic investment for India.
· Possible American sanctions could hit infrastructure development in Chabahar.
· This could affect the pace of development and cause a delay.
Way forward
· Chabahar - India’s goal of helping Afghanistan’s reconstruction may be affected if Chabahar is slowed down.
· Notably, India is engaged in Afghanistan at the request of the Trump administration through $ 1 billion assistance.
· India may likely argue with its interlocutors in Washington.
· It could stress that access to Afghanistan is a shared objective of both countries.
· India-Iran - The government should look at options like the rupee-rial trading mechanism.
· Opening of Iranian banks in India and Indian banks in Iran could be considered.
· This would facilitate movement of money and income between the two countries.
· It is a moment for India and Iran to plan for similar crises in future.
