November 21, 2024

The visit of Hassan Rouhani, the president of Iran to India was of extreme importance. India and Iran have traditionally shared warm ties. But more importantly, with growing terrorism and instability in the region, geopolitics warrants that these ties are further cemented. A big step was taken in this direction when president Rouhani signed the leasing agreement for the Chabahar port – jointly developed by Iran and India. The port is of immense strategic importance to India as it will allow easier access to Afghanistan. It also assumes greater significance in the light of the OBOR initiative of China, in collusion with Pakistan. Chabahar will also transform India’s trade ties with Iran.

The other big takeaways from the Rouhani visit were the decision to allow India to spend in rupees in Iran. Another agreement was signed to start a state-sponsored Indian ports company there. But a matter of concern was that the exclusive rights given to India to develop the Farzad B oilfield were not restored, mainly because of US sanctions on Iran. Ties between the two nations had suffered between 2003 and now and it is time to set them right.

In the cauldron that is the middle-east, Iran is an oasis because it is free of terrorist activities. Although it is not on good terms with many Muslim nations like Saudi Arabia, Iran is a progressive state which could be the emerging super power in the region. India has a lot at stake in Iran. Apart from its geopolitical importance, closeness with Iran can give India access to assured supplies of petroleum products at reasonable prices. Also, Iran can be a huge market for Indian engineering and consumer products. Hence, it was good that the Rouhani visit went off well. India must now follow up on this and not let the advantage slip.