India-Iran Relations

[ajtr]

India-Iran Trade & Investment Seminar​

Iran reached a positive trade balance with India in the first two quarters of the current Iranian year (started March 21). The trade balance was negative from 2004 to 2009.

According to the statement of Trade Promotion Organization of Iran, the country has exported commodities worth over $700 million to India during March 21-September 22, while has imported $500 million.

Head of Indian Trade Delegation, Chitranjan Kapur, attributed this to rise in imports of oil from Iran.

Speaking at a seminar themed as "Iran and India Trade-Investment Forum" which was held in Tehran on Thursday, he said since Indian industries are growing, the country needs more oil.

"We should also increase our trade in non-oil commodities in spite of banking problems," he added.

India imported close to $10 billion worth of oil and petrochemical products in the year to March 2010, he said, adding the figure has a rising trend. Currently some Iranians banks are not on sanction list, he said, adding, "We will hold negotiations with Indian senior officials for removing banking problems."

On launching a barter market to move beyond the L/C problems, the Indian official said this can be a good choice.

"Since Iran is considered as our top trade partner, we try to find other alternatives."

Petrochemical Potentials
Head of Iran-India Business Council called high petrochemical capacities of Iran as a reason behind the rise in Iran exports.

Faraz Edrissian said India operates in line of its national interests, adding it is to the benefit of India to use Iran's investment opportunities.

Currently, India only implements those sanctions ratified by United Nations Security Council, he pined out.

It has not imposed unilateral sanctions against Iran, he added.

This seminar indicates India is keen to promote financial ties with Iran, he underlined.

Iran has implemented technical-engineering projects worth $300-400 million in India including launching gas pipeline and construction projects.

Speaking at the same gathering, Indian Ambassador in Tehran Sanjay Singh said Iran and India are cradles of great civilizations. The two nations enjoy long historical and cultural ties, Sanjay Singh mentioned.

India, home to various cultures and customs, is turning to a global power, he said.

With population of one billion, India is considered as the second populous nation and the greatest democracy in the world.

Highlighting that Indian economy is worth $1.2 trillion, he said it has witnessed an 8 percent growth since 2003.

India wants to maintain its growth until 2030 and double its per capita income within a decade, the ambassador underscored.

Indian economic growth can create opportunities for regional economies such as Iran, he pointed out.

The two countries have close cooperation in energy, industry and transit sectors, he said.

Meanwhile, head of Asia-Pacific Bureau of Iran's Trade Promotion Organization, Amir Talebi termed India as an important Asian nation which has seen a significant growth in recent years.

India is considered as the fourth trade partner of Iran in terms of export and 10th trade partner in terms of imports, he pointed out.

Although mutual trade is not in satisfactory level, it has a rising trend, he said.

He mentioned that Iran's exports to India have grown by 70 percent since March 21, attributing it to the utmost efforts of Iranian merchants to promote ties.

He said the 16th Iran-India Economic Commission would be held in New Delhi in near future, adding numerous Indian firms took part in Tehran's Industry Fair this year.

Once joint companies are launched, they can materialize the possibility of re-export to the other nations, he observed.

He also pointed to preferential trade, urging for acceleration in inking deal between the two nations in this regard.

Close to 12 industrial and mining companies from India as well as financial representatives of the two nations took part in the one-day seminar.


By Sadeq Dehqan

© Iran Daily 2010

 

[ajtr]

India's Strong Ties to Iran Enable Regime​

Today (November 5, 2010), US President Barack Obama is traveling to India. He will meet with Indian government officials to discuss a list of 41 companies which may violate US and EU sanctions against Iran. One company on the list is Oil and Natural Gas Corporation Videsh Ltd (OVL), the second largest Indian company in terms of oil production and oil and gas reserve holdings. OVL is currently doing business with Iran and has plans to increase its activity with the Farzad-B gas field. The company wants the Indian government to ask the US president to exempt it from these sanctions. A provision under the sanctions allows countries with inadequate resources to claim an exemption for current projects. India argues that it is energy-deficient and dependent on gas and oil to satisfy a growing domestic demand for energy.

India will take the Asian seat as a non-permanent member on the UN Security Council in January 2011. India's last term was almost 20 years ago in 1991-1992. In the next two years, India will take a more proactive role in international diplomacy. In a press conference, Foreign Minister S M Krishna said "India will be the voice of moderation and of constructive engagement." With this new position, India and its relationship with Iran will be put to the test.

Diplomatic relations

India and Iran have established a deep relationship since the end of the Cold War. During the Cold War, India and Iran were aligned on opposing sides. Significant improvements in relations between the two countries began in the 1990s and continued after the 1993 visit of Indian Prime Minister Narashima Rao to Iran. The diplomatic contacts developed over subsequent years, resulting in the 2001 Tehran Declaration, laying the foundation for cooperation within the defense sector. In January 2003, President Khatami travelled to India where both leaders signed the New Delhi Agreement, which evolved from the Tehran Declaration and further committed the two states to deeper levels of engagement including military cooperation.

Iran plays an essential role in India's national security strategy. With a consulate located in the port of Abbas in southern Iran, India observes the ongoing traffic of 60% of the world's oil traveling through the Straits of Hormuz. India also has a consulate located in Iran's Baluchistan province along the border of Pakistan in order to monitor the country's activities from the West. In view of Iran's close relations with Pakistan, it is imperative that India sustain Iran's support regarding the status of Kashmir. Kashmir, a disputed territory controlled by both Pakistan and India, is the primary subject of tension between the two countries for at least the past 60 years.

Two major stumbling blocks in Iran-India relations are India's slight disagreement with Iran's nuclear program as well as India's close ties with Israel. India, a member state in the International Atomic Energy Agency (IAEA) since 1957, serves currently as one of 35 states on the IAEA board. Under Western pressure, India voted in favor of two resolutions against the Iranian nuclear program in September 2005 and February 2006. In the run-up to the votes, India lobbied European nations to lessen their resolutions. Experts assume that Iran's situation may have improved because of Indian interference.

Iran-India relations are further strained by India's favorable relationship with Israel. Israel is not only the second largest arms supplier to India it also trains parts of the country's military personnel. The two countries collaborate in manufacturing rockets, defense systems and high-tech military hardware. India and Israel also work together in the space market as India launched an Israeli-owned space satellite, TechSAR, in 2007, which led to sharp Iranian protests. Strong ties with the US/Israel on the one side and Iran on the other puts India in the role of a potential mediator in the nuclear program conflict.

Economic Relations

India-Iran relations are deeply embedded in energy as India is dependent on crude oil imports from Iran and Iran relies on India's refining capabilities. Iran currently provides India with 15% of its crude oil needs, which amounts to more than 2.5 million barrels per day. In this past fiscal year India imported 21 million tons of oil from Iran. This 15% crude oil need is bound to increase as India's economy booms. In return, Indian refining companies provide Iran with 40% of Iran's refined oil which Iran is currently incapable of producing. In May 2009, it was reported that India increased its imports of Iranian crude oil in lieu of Saudi Arabian oil.

Reliance Industries strops business with Iran

In May 2009, under US pressure, India's privately owned refining company, Reliance Industries, stopped purchasing Iranian crude oil. The company also said it would not renew any contracts to import crude oil from Iran in the fiscal year of 2010. In January 2010, it had reduced its imports from Iran by 83% compared to last year and it did not purchase any crude oil in February and March of 2010. Yet, in 2009, Hindustan Petroleum Corp., a state-owned oil company announced that it would triple the amount of Iranian oil imports for the 2009-2010 fiscal year.

While India said it would honor the UNSC's latest round of sanctions against Iran, Resolution 1929 passed in June 2010, it still advocates for dialogue rather than unilateral sanctions and opposes additional unilateral sanctions from the US or EU. The investments from Indian firms in Iran did not exceed $20 million in any 12-month period and therefore do not yet violate U.S. law.

In July 2010, the Indian government expressed concerns about the consequences the U.S. Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 could have on the country's energy security and on Indian companies. Indian Oil Secretary S. Sundareshan asked companies such as OVL, IndianOil, Oil India Ltd, PetroLNG and Hinduja Group with investments in Iran's energy sector to seek legal advice before signing any contracts. IOC, OVL and OIL have plans to invest $ 5.5 billion to develop the Farsi block and there is another agreement among OVL, Hinduja Group, ONGC and Petronet to invest $ 10 billion in South Pars.

In light of the IAEA's September 2010 report, the US, EU, and other powers have expressed concerns about Iran's nuclear program. India has not. Instead, India moved to exempt one of its joint-ventures from UN sanctions and supported a statement published by the 118-member Nonaligned Movement criticizing the report.

Proposed 5.5 billion Indian investment in Farsi block

In June 2009, after an Iranian gas field in the Farzad-B area of the Farsi block on the Iran-Saudi border was discovered, a consortium of Indian oil companies including ONGC Videsh Ltd and its partners Indian Oil Corp and Oil India Ltd, proposed a plan to produce natural gas and construct a liquefaction plant to convert the gas into LNG (liquefied natural gas). The gas field is projected to hold in-place reserves of up to 21.68 trillion cubic feet of which 12.8 TCF is extractable. Currently, OVL and IOC each have a 40% stake in the 3,500 sq km Farsi offshore block that was awarded to the consortium in 2002. OIL has the remaining 20%.

All three companies of the consortium are on a list of firms contravening the provisions of US sanctions against Iran. The consortium's legal advisors maintain that the sanctions cannot prevent India from developing its venture in Iran though without appropriate financing it is impossible to pursue the project. India is hoping the US will be lenient and exempt the consortium from the most recent sanctions.

Iran-Pakistan-India Peace Pipeline

Because of India's growing demand for energy, a pipeline was proposed in 1994 to deliver natural gas from Iran to India and Pakistan. The estimated $7.5 billion project is projected to initially transport 60 million cubic meters of gas daily, which could later increase to 150 million cubic meters. From the outset, India has remained skeptical of both Iran's proposed gas prices and Pakistan's involvement. In September 2009, India withdrew from the project in favor of an Indo-US civilian nuclear agreement.

Despite India's withdrawal from the project and US pressure on Pakistan to also exit the program, plans for the pipeline between Iran and Pakistan continue. US and UN sanctions on trade with Iran have delayed pipeline construction. It is expected to be completed by 2015. There is some speculation as to whether or not India will rejoin the project. Presently, Iran and Pakistan remain open to the future participation of India and possibly Bangladesh.

Underwater Gas Pipeline

Talks of an underwater gas pipeline among Iran, India, and Turkmenistan were held July 2010 during the two-day 16th Joint Commission, co-chaired by India's foreign minister S M Krishna and Iran's economic affairs minister Syed Hosseini. Because of India's apprehension about Pakistan's involvement in the IPI pipeline and subsequent withdrawal from the project, this pipeline will bypass Pakistan. Turkmenistan proposed that it transport gas to northern Iran while being supervised by India and Iran, in turn, transport gas to southern deposits in India by way of the Arabian Sea.

The South Asia Enterprise Private Ltd (SAGE), which is set to develop the project, stated that the first leg of the pipeline will carry 31 billion cubic meters and will cost an estimated $4 billion dollars. The submersible part of the pipeline will begin in Chabahar, an Iranian port city, and deliver gas in Gujarat, India. This project is a large fiscal undertaking and will require international support. Italy has already expressed interest in supporting the project.

 

[ajtr]

India's sound advice on Iran​

By Stephen Kinzer, NYT

This week in New Delhi, President Obama went further than any of his predecessors toward embracing India as an ally, and most Indians are thrilled by this warm treatment.

This does not mean, however, that the two countries will align all of their foreign policies. In some areas, India would like the United States to change its approach. One key difference is over Iran. India has the wiser policy, and Obama should consider emulating it.

Despite some changes in atmospherics, Obama's approach to Iran has been remarkably similar to the one President George W Bush took in his second term: don't bomb Iran, but continue to threaten that "all options are on the table''; steadily intensify economic sanctions, despite ample evidence that they weaken civil society and lavishly enrich the repressive Revolutionary Guard; insist on negotiations on the nuclear issue, but refuse to broaden the agenda to include issues that concern Iran.

Accommodating policy

India, like many other regional powers, takes the Iranian threat far less seriously than the United States does. It does not see Iran as an existential threat to anyone, but rather as just another thuggish country with resources, and wants to see it enticed back into the world's mainstream. India would like the United States to adopt a more accommodating policy toward Iran — and could even serve as the bridge that makes it possible.

One of Iran's other neighbours, Turkey, has already tried this approach. Turkish leaders have urged the United States to ratchet down its anti-Iran rhetoric, seek compromise instead of confrontation, and work to address Iran's concerns in an effort to draw it out of its isolation. The Obama administration has rejected this advice. Now it's India's turn to try.

There is a natural impulse to consider these countries as parts of different regions; Iran is mired in the strife-torn West Asia, while India dominates South Asia. This is a mistake. In fact, Iran and India were neighbours for millennia as they developed two of the world's richest cultures. The emergence of Pakistan in 1947 meant that India and Iran are no longer actual neighbours, but their shared history is so great that they feel as close as if they were still next door.

India imports oil and gas from Iran and is exploring the possibility of building a natural gas pipeline connecting the two countries — a project the United States opposes. Indian companies are negotiating for multi-billion-dollar oil exploration contracts in Iranian waters. In February, Indian foreign secretary Nirupama Rao made a two-day trip to Tehran. A month later, in Washington, she said her government opposes sanctions on Iran that "cause difficulties to the ordinary man, woman, and child (and) would not be conducive to a resolution of this question."

While the intensifying confrontation between the United States and Iran disturbs India, an easing of tension would help stabilise both West Asia and South Asia. It would certainly set off alarm bells, especially in Israel, where the idea of improved ties between Iran and the United States triggers instinctive panic.

But Iran has so much to offer the United States strategically, beginning with its ability to help stabilise Iraq and Afghanistan, that reconciliation makes good sense. Some in India want their country to press Washington to change its mind on this crucial question.

The United States now has two good friends, Turkey and India, that sit near Iran and want better US-Iran ties. Turkey has been unable to persuade the Obama administration that a change in Iran policy makes sense. Now that Obama has described ties between India and the United States as "the defining partnership of the 21st century," maybe he will be more willing to heed India's advice.

 

[chex3009]

Increasing Complications in India-Iran Relations


Courtesy : STRATFOR

 

[nrj]

India to scale up eco ties with Iran; trade pact under study

NEW DELHI: Notwithstanding US pressure to curtail trade with Iran, India today gave a strong signal that it would rather scale up its commercial engagement with Tehran possibly through a bilateral preferential trade pact.

While India conveyed its intention to step up economic ties with Iran, leader of a high-level visiting trade delegation from Tehran said the two countries should work together without bothering whether "others like or do not like...

"The fact is that the economies of India and Iran should work together. Others like or do not like, we should work together and everybody should think for their interests," President of the Tehran Chamber of Commerce, Industry and Mines Yahya Al Eshagh said after meeting with Assocham here.

Addressing the meeting, Joint Secretary in the Commerce Ministry Arvind Mehta said that the Indian government has commissioned a study for a preferential trading arrangement with Iran. The bilateral trade was USD 14 billion in 2010-11, of which major part is the Indian import of crude oil.

In the wake of sanctions from the US and EU, Iran is looking for increased imports from India. However, the two countries still face problems with regard to banking transactions for which Iran has sought permission to open a branch of Parsian Bank in Mumbai.

The visit by the 56-member Iranian trade delegation coincided with that of US Secretary of State Hillary Clinton.

At a joint press conference with Clinton, External Affairs Minister S M Krishna said, Iran is "one of the critical destinations for our external trade". India's exports to Gulf region were about USD 100 billion.

Commerce Secretary Rahul Khullar yesterday assured the Iran business persons of resolving their problems, including setting up of Parsian Bank in India.

India to scale up eco ties with Iran; trade pact under study - The Economic Times

 

[amoy]

So what has India responded to below?

Clinton tells energy-starved India to reduce oil imports from Iran - news.smashits.com

Clinton tells energy-starved India to reduce oil imports from Iran
Posted: 1:7p.m IST, May 7, 2012
Kolkata, May 7 (ANI): Visiting United States Secretary of State Hillary Rodham Clinton on Monday urged energy-starved India to reduce its oil imports from Iran to maintain global pressure on that country to come clean on its nuclear program.

 

[ice berg]

They did what she said.

 

[ajtr]

India decides to cut crude oil import from Iran by over 11 pc

India decides to cut crude oil import from Iran by over 11 pc


NEW DELHI: Succumbing to US pressure, India has decided to cut crude oil import from Iran by over 11 per cent this fiscal to 15.5 million tons.

India, which imports 80 per cent of its crude oil and relies on Tehran for 12 per cent of those imports, shipped 18.50 million tons of oil from Iran in 2011-12, minister of State for Petroleum and Natural Gas R P N Singh said in a written reply in the Rajya Sabha today.

This decision comes against the backdrop of intense US pressure on India to cut oil import from Iran. The government had earlier said that it was not possible for India to take any decision to reduce the imports from Iran drastically as that country was important in meeting India's growing energy needs.

US Secretary of State Hillary Clinton last week stated that India needed to further reduce imports from Iran to win waiver from US sanctions. The US has already granted waivers to the sanctions for Japan and 10 European countries but has left out China and India, Iran's biggest clients.

India has not publicly said it was aiming to cut back oil imports from Iran but has unofficially asked its top imports to prune shipments from Tehran.

"Total crude oil imported from Iran by Indian companies during the period 2010-11 and 2011-12 is 18.50 million tons and 17.44 million tons respectively. The target fixed for import of crude oil from Iran for the year 2012-13 is approximately 15.5 million tons," Singh said.

He said the quantum of crude oil imported by Indian refineries from various sources is decided by them on the basis of technical, commercial and other considerations.

"In order to reduce its dependence on any particular region of the world, India has been consciously trying to diversify its sources of crude oil imports to strengthen the country's energy security," he said.

India currently imports crude oil from over 30 countries.

 

[nrj]

Indians are significantly reducing their Iranian oil imports all since December. TOI just woke up.

 

[JAYRAM]

India bows to US pressure, cuts Iran oil import by 11%

Sanjay Dutta & Sachin Parashar, TNN | May 16, 2012, 12.46AM IST

NEW DELHI: Indian state-run refiners will import 11% less oil from Iran, the government told Parliament on Tuesday, a day when a US emissary arrived in a bid to wean New Delhi away from Teheran's fuel.

"The target fixed for import of crude oil from Iran for 2012-13 is approximately 15.5 million tonne," minister of state for petroleum R P N Singh told the Upper House in a written reply. He said Indian refiners imported 18.5 million tonne crude from Iran in 2010-11 and 17.44 million tonne in 2011-12.

India imports 80% of its oil requirement and about 12% of this comes from Iran. But refiners have been tying up alternative supplies ever since the RBI scrapped a regional arrangement in December, 2010, that made it difficult to route payments for Iranian oil.

India is one of the biggest buyers of Iranian oil along with China. The US and the EU have been pressuring New Delhi to halt buying crude from Iran as they try to arm-twist Teheran into abandoning its nuclear programme.

The government has steadfastly denied any pressure. But it has also been quietly tying up additional quantities from West Asian oil producers, including Saudi Arabia, and looking at other types of crude that are similar to Iranian crude and suit present refinery configurations.

During her visit here last week, US secretary of State Hillary Clinton had said India needed to do more on cutting Iranian oil purchase and Washington would send a special envoy to help New Delhi along.

On Tuesday, Carlos Pascual, special envoy and coordinator for international energy affairs in the US State Department, held discussions with key Indian officials. Officially, he briefed the Indian officials about the emerging trends in global energy market, especially due to the advent of shale gas.

Increasing supplies of shale gas and oil from huge deposits have depressed Henry Hub - the US benchmark for gas trade - and reduced US demand for LNG, or liquid gas transported in ships, mostly from West Asia and Nigeria. Combined with huge shale gas deposits reported from Argentina, Poland, parts of Africa and China have sparked a worldwide clamour for benchmarking LNG, or liquid gas transported in ships to the Henry Hub rather than more expensive crude and put pressure on LNG producers.

Even Russian president Vladimir Putin recently acknowledged the threat shale gas and oil posed to Russian state-run oil and gas giants, the biggest suppliers outside Opec, and asked them to prepare for a possible new world energy order.

At home, state-run gas utility GAIL has been first to catch the trend by taking stake in a US shale gas firm and tying up shale-LNG at Henry Hub price. This has made it difficult for Petronet, India's biggest LNG player, to tie up additional supplies from Qatar which has indexed its price to crude.

Private sector Reliance Industries, the first Indian firm to acquire US shale gas equity, is also eventually likely to bring shale-LNG to India for marketing through its joint venture with BP.


India bows to US pressure, cuts Iran oil import by 11% - The Times of India

 

[trackwhack]

11 percent

But still, nothing would have been better than 11%

 

[sob]

So is this a result of the visit of the Secretary of State Clinton? Did she offer something to the GOI in return for this, we shall come to know in the days to come.

Or was this the price Clinton got for defusing the Mamata Bomb.

 

[Sridhar]

India snubs US sanctions on Tehran
TNN | Jun 1, 2012, 06.07AM IST

NEW DELHI: India on Thursday reiterated that Iran remained its key energy supplier and that any unilateral sanction imposed by the US would not be allowed to impact "legitimate trade interests" between the two nations.

"In a globalized world, sanctions decided unilaterally or regionally can have an impact on the markets. Such measures should not impact on legitimate trade interests," foreign minister S M Krishna said after a meeting with his visiting counterpart Ali Akbar Salehi.

Salehi too said Iran had always been a reliable partner of India and would continue to be reliable in matters related to energy security. He also briefed Krishna on the recent discussions between Iran and the P5+1 in Baghdad on Tehran's nuclear programme. "India has always held that the nuclear issue should be resolved through peaceful diplomacy and the framework of the IAEA provides the best forum to address the technical aspects of the issue," Krishna said.
India snubs US sanctions on Tehran - The Times of India

 

[arya]

India will continue to import crude oil from Iran. This is despite stricter sanctions from the United States and European Union.

India's Petroleum and Natural Gas Minister, Veerappa Moily has already stated that New Delhi has no intentions to put a halt to oil imports from Iran.

India imports 259,000 barrels of Iranian crude every day. It has come down by 43% since last year. At the same time Indian imports of crude oil from Latin America have doubled.

 

[sorcerer]

India-Iran tango won't annoy US

Three significant developments overlapped – the murderous attack on two prisoners in Pakistani and Indian jails with one dead and another critically wounded, Washington's announcement of former diplomat James Dobbins as the United States special representative for Afghanistan and Pakistan and the eruption of border clashes on the Durand Line.

It was against this complex backdrop that External Affairs Minister Salman Khurshid set out from Delhi on Friday on his visit to Tehran. In geopolitical terms, Pakistan's tensions with India and Pakistan hogged attention, but Dobbins's appointment introduces an intriguing element insofar as he is a staunch believer in the US-led war in Afghanistan and he is appearing at a point when the war is being wound up.

Khurshid's talks in Tehran may seem an act of "strategic defiance" of the US, eroding the robust American campaign to "isolate" Iran, but on closer examination, the India-Iran tango need not worry Washington. Khurshid's talks had two main outcomes – potential Indian investment of $100 million dollar to develop Chahbahar port and Iran's invitation to Indian companies to invest in production sharing oil exploration.

The connectivity that India hopes to develop with Central Asia via Chahbahar and the parallel proposal to negotiate a trilateral India-Iran-Afghanistan transit agreement would help the stabilisation of Afghanistan, which is also a key objective for Washington strategists. There are seamless possibilities for India-Iran cooperation with regard to the post-2014 Afghan scenario, but then, Iran relentlessly opposes the American military presence in Afghanistan while India views the US presence in positive terms. On the other hand, the recrudescence of Pakistani-Afghan tensions strengthens the raison d'etre of the new Silk Road via Iran.

India is unlikely to pursue a 'strategic defiance' of the US regional policy with regard to relations with Iran. India took a "principled position" that it will only abide by the UN sanctions against Iran but the ground reality is that the US' sanctions regime whittled down Indian imports of Iranian oil by 26% last year and an uneasy "truce" prevails whereby India maintains it still imports Iranian oil, while Washington claims satisfaction that Tehran's Indian earnings have been substantially reduced and sees no reason to "blacklist" Indian companies.

Meanwhile, Delhi uses the "Iran card" to leverage the pending decision in Washington to relax export controls on LNG supplies to India. India's argument is persuasive: How could Washington hurt India's energy security by blocking oil imports from Iran while also disallowing LNG exports to India?

Khurshid has visited Tehran just ahead of the India-US Strategic Dialogue slated for next month and this is indeed perfect timing. The Iranians see the urgency of injecting some "additionality" into the economic ties with India. Hence the oil offer, which of course signifies a major departure from Tehran's traditional policy to restrict foreign oil companies to service contracts at a fixed fee. Tehran probably hopes this will be seen as a hugely attractive offer by Delhi, underscoring the geopolitical reality that Iran is an indispensable partner for India, the prospects of LNG supplies from the US notwithstanding.

Clearly, Iran is bending over backward to promote Indian investments in its economy and to explore the possibilities of investing its surplus rupee funds (out of export of oil) in the Indian economy. But the Iranian efforts cannot make headway unless Delhi shares the same degree of commitment to build the partnership and encourages the Indian corporate sector, which is otherwise petrified about American wrath. So far Delhi has maintained an attitude of "masterly inactivity" – neither stymying the Iranian overtures nor pursuing them keenly enough – with an eye warily cast on Washington.

The heart of the matter is that the US is the elephant in the Indian-Iranian tent and although Tehran doesn't care about its presence, Delhi is acutely conscious of it. Besides, an added factor lately is that Riyadh also disfavors the Indian-Iranian strategic axis and it so happens that India has so pots boiling in the Saudi kitchen as well. All said, it is too early to say Khurshid's visit to Iran signifies new Indian thinking.

 

[SamwiseTheBrave]

India-Iran tango won't annoy US

stick to doing whats best in OUR national interest, and not what Uncle Sam or the Saudis want. we have enough cards in our hand to gain leverage on them. After all, if the US cannot be clear and unequivocal in backing us against Pakistan, on what basis should we do the same in the case of Iran ? It is in matters like this that non-alignment, though a much maligned word, gives us leeway in pursuing our own interests. Wish the same was employed in case of Sri Lanka and Bangladesh as well, to gain a stronger foothold in our immediate neighbourhood 1st , and then in the extended areas like Iran and ASEAN

 

[SamwiseTheBrave]

India will continue to import crude oil from Iran. This is despite stricter sanctions from the United States and European Union.

India's Petroleum and Natural Gas Minister, Veerappa Moily has already stated that New Delhi has no intentions to put a halt to oil imports from Iran.

India imports 259,000 barrels of Iranian crude every day. It has come down by 43% since last year. At the same time Indian imports of crude oil from Latin America have doubled.

this doesnt add up - from venezuela ?!?!? who else produces oil in LatAm ? wont that spike up the shipping costs and thus the landed price

 

[sorcerer]

Indo-Iranian cooperation in Afghanistan faces challenges

Aryaman Bhatnagar
08 May 2013

India has reaffirmed its willingness to develop Iran's Port of Chabahar during the seventeenth meeting of the India-Iran Joint Commission in Tehran recently. With an initial investment pledge of some $100 million, the move further strengthens the emerging partnership between the two countries in Afghanistan.

The Chabahar port is critical to India's Afghanistan policy. In the absence of direct physical access to the country and a hostile Pakistan denying Indian goods transit, the Iranian harbor is the most viable access point India has to Afghanistan and the rest of Central Asia.

India has already signed agreements with Afghanistan and Iran that grants preferential treatment and tariff reductions to Indian goods bound for Afghanistan and Central Asia at Chabahar. It has helped build the Delaram-Zaranj Highway, which connects Iran to the main Kandahar-Herat Highway in Afghanistan, as well as a road from Chabahar to the Iranian border.

Given Iran's vital role in providing access to Afghanistan for Indian businesses, the government in New Delhi has resisted American pressure for the country to join international sanctions against the Islamic republic, designed to dissuade it from developing a nuclear weapons capability.

Before the overthrow of the Taliban in 2001, India and Iran both supported the Northern Alliance, a group of mostly minority ethnicities that opposed the Islamist Pashtun regime.

The two neighboring powers' interests in Afghanistan still converge. A spillover in violence could have negative repercussions for both, including refugee flows, a particular concern for neighboring Iran, increased narcotics smuggling and terrorist attacks, which mainly concern India.

A return of the Taliban or some other radical Islamist group taking control of the country would serve neither India nor Iran. In such a case, the former would fear that the country once again becomes a safe haven for Muslim extremists who will be more susceptible to Pakistani interests.

From Tehran's point of view, a Sunni bloc comprising Afghanistan, Pakistan and Saudi Arabia poses an ideological as well as security challenge. India's and Iran's engagement in Afghanistan has, for the past decades, been aimed at reducing the Pakistani, Saudi and, in Iran's case, American influence in the region.

Finally, for Iran, cooperation with India in Afghanistan serves a symbolic and economic purpose as it allows the country to appear less isolated in the world and ease some of the pressure that international sanctions have brought.

Iran's standoff with neighbouring and Western nations does pose a problem for India which has to balance its relations with Iran against its interest in deepening relations with the United States. Collaborating with American initiatives in Afghanistan or Central Asia that exclude Iran might persuade the latter to sever ties, for instance by removing the preferential treatment given to India at Chabahar.

Linked to the standoff is Iran's response to the American troop presence in Afghanistan. While it does not want to see the Taliban return to power, it has extended support to the group in an attempt to keep the United States preoccupied in Afghanistan and distract it from attacking Iran. It is likely to reduce this support once the United States and its allies withdraw from Afghanistan in 2014. For now, though, it threatens to strike at the very foundation of what brought India and Iran together in Afghanistan.

Moreover, this Iranian sabotage, along with its treatment of Afghan refugees and its tendency to fuel sectarian or ethnic rivalries in Afghanistan, is damaging its reputation in Afghanistan. It is increasingly seen in the same light as Pakistan. India, then, may want to be more cautious in being seen as a willing "partner" of Iran's.

Pakistan's possible response to such collusion cannot be ignored. The Northern Alliance was, and possibly still is, viewed in Islamabad as an Indo-Iranian attempt to thwart its influence in the country. The memory of such collaboration is likely to play a part in Pakistan's strategic calculations, especially as increasing Indian and Iranian influence in Afghanistan, at Pakistan's expense, could stoke its fears of strategic encirclement. Indian projects and targets have been attacked in the past and such attacks could extend to Iranian interests as well.

How the administrations in New Delhi and Tehran manage to navigate around these roadblocks over time will determine the viability and durability of their alliance in Afghanistan.

Indian Strategic Studies: Indo-Iranian cooperation in Afghanistan faces challenges

 

[ladder]

Iran, India Discuss Expansion of Defense Ties

TEHRAN (FNA)- Iran's Ambassador to New Delhi Gholam Reza Ansari and Indian Defense Minister A.K. Antony discussed ways of expanding mutual cooperation between two friendly states in defense fields.
During the Saturday meeting, the Indian minister and the Iranian diplomat stressed the development of bilateral defense cooperation, exploring ways to expand relations in this regard.

Pointing to achievements made by Iran and India in the defense and military industry, the Iranian envoy expressed Tehran's readiness to enhance relations and exchange experience with New Delhi.

Late in May, Ansari underlined that Tehran and New Delhi have great potentials which should be used to enhance their mutual cooperation.

The Iranian ambassador made the remarks addressing a large crowd of people in Aligarh city of India's Uttar Pradesh State at the time.

"The relations between the two cordial states of India and Iran should flourish more and more," Ansari said.

Iran and India which have deep historical and cultural relations are now seeking to further expand political and economic ties.

India, the world's fourth-largest petroleum consumer, is Iran's second largest oil customer after China and purchases around $12bln worth of Iranian crude every year, about 12 percent of its consumption.

Farsnews

 

[The Messiah]

We could sell them LCA's. A nice profit could be made giving a boost to our industry and iranians will get a good aircraft.