India has a strategic and economic relationship with Iran
India has growing economic ties with Iran and is investing heavily in its energy sector to provide a reliable source of fuel for India's growing economy. Strategically, while being careful not to upset its relations with the U.S. or the West, India also looks to Iran as a potential balance against Pakistan.
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India, for its part, will continue to be “tactically tough” on short-term votes by the IAEA board of governors (of which India is a member) against Iran’s continuing opacity on supplying data, albeit just enough to ensure continuing smooth strategic relations with the United States. However, it will also continue to cooperate with Iran on building oil and gas pipelines on Iranian territory to get badly needed fuels to India’s economy as well as modernizing Iranian energy transportation infrastructure, possibly even making Iran an energy transportation hub linking Central Asia, South Asia, and the Middle East through new ports and railroads. It may in fact do the latter in cooperation with Russia and China. Further, India can be expected to support Iran in niche areas of conventional defense technologies and weaponry (e.g., India recently supplied better fuel bat teries to Iran’s Russian-made submarines, as well as servicing its naval and air force equipment). It will also continue pursuing strong cultural ties that emphasize commonalities between Iran’s Shia culture and India’s own burgeoning Shiite population.26
For Iran, India's vote could signal a long-term strategic shift in policy, where New Delhi would ally with Washington over Iran in these ongoing confrontations. This possibility could be deeply disturbing to Tehran if it was hoping that India would become a strategic partner. Needless to say, Singh has told deputies that "confrontation should be avoided at all costs." He added that, "for this to be possible, time must be given for diplomacy to work. Confrontation is not in the interest of India or of our region." In es- sence, India is taking a middle-of-the-road approach, attempting to placate both the East and West, the former for domestic reasons and the latter for international reasons. As a result, India could be the decisive bargaining chip between Iran and the United States, with both states competing for New Delhi's affirmative support. Essentially, though, if New Delhi is to remain a leader of the NAM, India cannot support any sanctions policy without appearing hypocritical. Because it is not a permanent member of the Security Council, however, it may not be forced to make a decision. The most likely option in the wake of its pending nuclear deal with the United States is to support U.S. policy tacitly while subtly maintaining relations with Iran.
India is also helping Iran in its quest to become the transportation hub linking the Persian Gulf to Central Asia by building a transport corridor that will link India with Central Asia through Afghanistan and Iran. As part of this project, India will assist Iran in modernizing the southeastern Chahbahar port on the Strait of Hormuz, connecting it to the main roads. India also signed a memorandum of understanding more than a year ago with Iran and Turkmenistan to facilitate Indian exports to Central Asian countries by rail across Iran from the port of Bandar Abbas, which links the Persian Gulf to the Gulf of Oman. There also is an agreement among Russia, India, and Iran to construct the North-South International Transport Corridor. The creation of an East Corridor con- necting Uzbekistan, Iran, and Afghanistan is also being discussed.
The Indian government welcomed news of the Iran deal. A former Indian national security advisor described the accord reached as the “best deal available.” India has a complicated relationship with Iran, and its leaders will watch closely as implementation and the consequences of the deal play out. The deal could open up economic and strategic opportunities for India and thus it’s being seen mostly with hope; however, those hopes are tempered by some challenges and uncertainties.
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