SSB Lecturette Notes: India–Iran Relations
Explained: Chabahar Port, Energy Security & Strategic Significance

Fresh SSB batches start around the 1st & 15th of every month.

“Geography makes us neighbours; shared interests make us partners.”

Introduction

• India and Iran share a rich civilizational history marked by deep cultural, linguistic, religious, and trade ties.
• In the modern era, both countries have engaged in strategic, energy, trade, and connectivity partnerships, though challenges exist due to geopolitical shifts and external pressures (especially US sanctions).
• With both countries located in the Indian Ocean Region (IOR) and West Asia, their partnership holds regional and global significance.

Key Areas of Cooperation

• Energy:
  • Iran was once India’s 3rd-largest crude oil supplier.
  • Oil imports halted in 2019 due to US sanctions.
  • India seeks to resume oil trade via rupee-rial or barter mechanisms.
• Chabahar Port:
  • Developed by India as a strategic alternative to Pakistan’s Gwadar.
  • Provides access to Afghanistan and Central Asia bypassing Pakistan.
  • In May 2024, India and Iran signed a 10-year agreement to manage and operate the port.
• International North-South Transport Corridor (INSTC):
  • Multimodal project connecting India to Russia and Europe through Iran.
  • Enhances trade efficiency and reduces logistics costs.
• Cultural & Historical Ties:
  • Shared Persian influence on Indian architecture, music, literature, and language.
  • Regular academic and cultural exchanges promote soft diplomacy.

Recent Developments (2023–2025)

• Chabahar Agreement signed (May 2024) — India Ports Global Limited to operate Shahid Beheshti terminal for 10 years.
• Iran joins BRICS — expanding India-Iran coordination in multilateral platforms.
• Taliban in Afghanistan — shared concerns over terrorism, drug trade, and refugee crises.
• US–Iran tensions — complicate India’s energy and trade policies.
• Iran-Saudi rapprochement (brokered by China) — alters West Asian power dynamics, requiring India to recalibrate relations.

Strategic Importance of Iran for India

• Gateway to Central Asia through Chabahar and INSTC.
• Energy security via Iran’s vast oil and gas reserves.
• Regional stability due to Iran’s influence in West Asia and Afghanistan.
• Countering China-Pakistan axis with Indian presence near Gwadar.

Challenges in the Bilateral Relationship

• US sanctions hinder oil trade, financial transactions, and investment.
• Volatile domestic politics in Iran, especially after President Raisi’s death (May 2024).
• China’s deepening role through a 25-year strategic deal with Iran.
• Pakistan factor limits India’s strategic depth due to Iran’s balancing act.

Way Forward

• Resume oil trade under alternative payment mechanisms.
• Deepen connectivity through Chabahar and INSTC.
• Enhance counter-terrorism cooperation and maritime security.
• Expand cultural diplomacy and education ties.
• Use BRICS, SCO, and UN for multilateral coordination.
• Balance ties amid US–Iran tensions and China’s growing footprint.

Conclusion

• India–Iran relations blend strategic necessity, historical connection, and geopolitical complexity.
• Iran remains a gateway to India’s west — to Central Asia, energy markets, and West Asian stability.
• A strong, pragmatic, and balanced approach will ensure this ancient relationship thrives in the modern era.