To counter China, India keen to iron out strains in Iran ties

With Iran’s growing proximity with China ringing alarm bells in Indian strategic establishments, New Delhi is keen to iron out strain in ties with Tehran to foil Beijing’s bid to enhance its influence in the region. Sources say that India wants to move fast in this diplomatic goal, for which a comprehensive strategy is being […]

by T. Brajesh - July 3, 2021, 8:41 am

With Iran’s growing proximity with China ringing alarm bells in Indian strategic establishments, New Delhi is keen to iron out strain in ties with Tehran to foil Beijing’s bid to enhance its influence in the region.

Sources say that India wants to move fast in this diplomatic goal, for which a comprehensive strategy is being put in place. Prime Minister Narendra Modi is learnt to have a discussion with External Affairs Minister S. Jaishankar regarding India’s diplomatic preparedness to reach out to Tehran once the newly-elected President takes charge formally on 2 August.

PM Modi was among the first foreign leaders to congratulate Ebrahim Raisi, after he was elected to be Iran’s next President. The PM underlined an urgent need to work with the new regime to “further strengthen warm ties between India and Iran”.  

According to sources, India has made a plan for an early engagement with Raisi’s government in Tehran. India wants to reach out to the new regime with its future plan to expedite the pending projects and invest in some new ones. The day Raisi was elected as the new head of the government in Iran, Indian officials met Iran’s Ambassador to India, Dr Ali Chegeni, apprising him of India’s commitment to carrying forward the warm ties between both the countries. 

In fact, India had to suspend the trade with Iran after the US put strict sanctions on it, following which the ties between both the nations were not that warm. Earlier, Iran has been one of the biggest suppliers of oil to India.  

After the US imposed sanctions on it, Iran, which was facing financial challenges, was looking for some new partners. With India’s trade ties under suspension, China swung into action to use this much-needed opportunity to further its agenda to grow influence in Iran. What set the alarm bell ringing in Indian establishments, Iran last year proposed a $400 billion deal with China which is the biggest deal China signed with any country. This was seen as an example of the growing proximity between Beijing and Tehran.

What has worried India is “China wants alternative markets for its products and it also wants to reduce dependence on South China Sea (SCS)”. It is already in tandem with Pakistan with its project China Pakistan Economic Corridor (CPEC). China will definitely be looking for an opportunity to extend it to Iran.  The new deal will ensure oil supply to China from Iran. Moreover, it may have greater access to European markets. “India is aware that China is also eyeing Chabahar port which India is developing and a lot of work has been completed. Beijing sees it as India’s reply to its control over Pakistan’s Gwadar port,” an official said. The Dragon fears that its Gwadar plan may be thwarted by India through the Chabahar move.

So, the strategic importance of Iran is also high. With this in view, India has decided to shift its diplomatic mission in top gear to improve relations with Iran. India is also keeping an eye on what happens in the negotiation in Vienna between Iran and the United States for the revival of the 2015 nuclear deal. In fact, this development will also be important for India’s diplomatic push on the Iran front.