India–Iran Relations: Civilisational Continuity and Contemporary Strategic Relevance
(UPSC GS Paper II – International Relations: Bilateral Relations, Energy Security, Connectivity, West Asia)
Context (Introduction)
India–Iran relations rest on one of Asia’s oldest civilisational linkages and are now being reshaped by present-day imperatives of energy security, regional connectivity, counterterrorism, and the demands of a multipolar global order.
Historical and Civilisational Ties
- Shared Indo-Iranian Origins: Linguistic and cultural similarities between the Rigveda and the Avesta point to a common Indo-Iranian civilisational origin, creating deep-rooted cultural familiarity and long-term trust.
- Persian Legacy in India: Persian served as the official administrative and court language in large parts of India from the Delhi Sultanate through the Mughal period (13th–19th centuries), shaping diplomacy, law and literature.
- Indo-Persian Literary Synthesis: India became a major centre of Persian literary production, giving rise to Sabk-e-Hendi (Indian style of Persian poetry), with figures such as Bedil Dehlavi still widely read in Iran today.
- Cultural Exchange beyond Politics: Despite colonial rule and later geopolitical shifts, Persian studies, manuscripts and scholarly exchanges continued in Indian institutions, preserving cultural continuity.
- Civilisational Soft Power: These shared cultural memories have ensured that bilateral ties were never marked by historical hostility, unlike many relationships in West Asia.
- Foundation for Strategic Trust: This historical depth has enabled sustained dialogue even during periods of sanctions and geopolitical pressure.
Current Status of India–Iran Relations
- Energy Relations Disrupted but Not Broken: Before renewed sanctions, Iran was among India’s top crude oil suppliers (2016–17). Imports stopped after 2019, but energy cooperation remains strategically relevant.
- Chabahar Port Cooperation: India operates the Shahid Beheshti terminal at Chabahar, giving it direct maritime access to Iran and onward connectivity to Afghanistan and Central Asia.
- Operational Proof of Utility: India used Chabahar to deliver humanitarian assistance, including wheat shipments to Afghanistan after 2021, demonstrating practical strategic value.
- Role in INSTC: Iran is a central node in the International North–South Transport Corridor, linking India with Russia, the Caucasus and Europe through multimodal routes.
- Security Convergence: Both countries oppose extremism and instability in West and South Asia, particularly emanating from Afghanistan.
- Limited Trade Volumes: Despite strategic alignment, bilateral trade remains modest (well below potential), constrained mainly by sanctions and financial barriers.
Strategic and Economic Potential
- Energy Security Partnership: Iran holds some of the world’s largest oil and gas reserves, offering India a long-term, geographically proximate energy option once constraints ease.
- Connectivity and Trade Advantage: The INSTC route through Iran is significantly shorter and cheaper than traditional sea routes via the Suez Canal, improving India’s Eurasian trade competitiveness.
- Regional Balancing Role: India–Iran cooperation supports strategic autonomy by reducing overdependence on any single regional bloc.
- Technology and Knowledge Cooperation: India’s strengths in IT and digital services complement Iran’s advances in medical sciences and nanotechnology.
- Economic Diversification Beyond Oil: Expanding cooperation in pharmaceuticals, healthcare, education and research can stabilise ties against energy market volatility.
- Multipolar World Alignment: Both countries support a multipolar order that allows greater strategic flexibility and regional decision-making.
Key Challenges and Constraints
- Third-Party Sanctions: U.S. sanctions have constrained oil trade, shipping insurance, banking channels and investment flows.
- Financial Transaction Barriers: Restrictions on dollar settlements and global banking access limit scalability of bilateral trade.
- Underdeveloped Connectivity Infrastructure: Rail and logistics links connecting Chabahar fully to the INSTC network are still incomplete.
- Geopolitical Volatility in West Asia: Regional conflicts raise uncertainty for long-term economic and infrastructure projects.
- Trade Below Potential: Bilateral trade remains far below what two large economies with complementary strengths could achieve.
- Diplomatic Balancing for India: India must carefully manage its Iran ties alongside its relations with the U.S., Israel and Gulf partners.
Way Forward
- Strengthen Connectivity Projects: Fast-track rail and logistics infrastructure linking Chabahar to Central Asia and the INSTC.
- Innovative Financial Mechanisms: Expand local currency trade, barter arrangements and alternative settlement systems to bypass external constraints.
- Phased Energy Engagement: Explore flexible, sanction-compliant energy cooperation models, including petrochemicals and LNG.
- Diversify Economic Cooperation: Prioritise IT, healthcare, pharmaceuticals, education and research collaborations.
- Institutionalise Security Dialogue: Regular consultations on Afghanistan and counterterrorism can stabilise shared neighbourhoods.
- Leverage Civilisational Diplomacy: Cultural exchanges, academic cooperation and people-to-people ties should reinforce strategic engagement.
Conclusion
India–Iran relations combine rare civilisational continuity with concrete contemporary relevance. If connectivity, economic diversification and pragmatic diplomacy are pursued together, the partnership can enhance India’s strategic autonomy and contribute meaningfully to stability in West Asia and Eurasia.
Mains Question
Q. India–Iran relations are anchored in deep civilisational ties but shaped today by strategic imperatives. Analyse the current state of the relationship, its potential, and the challenges that must be addressed to realise its full scope. (250 words, 15 marks)