Tension has once again increased between Iran and Israel. The situation in the Middle East has become very serious after the recent attacks by America and Israel on Iranian military bases. Iran has also clearly said that it will decide the outcome of this war itself. In such an environment, a big question is arising that what effect will this conflict have on India and how much impact can it have on the trade between the two countries.
In fact, relations between India and Iran are not just a few decades old, but there has been a centuries-old trade and cultural association between the two. Even though the eyes of the world are currently focused on political tension, the reality is that Iran directly or indirectly depends on India for many of its essential needs. The relations between the two countries are not limited to diplomacy only, but its reflection is clearly visible in the life, food, clothing and lifestyle of the common people.
What does India send to Iran?
Iran has been providing crude oil to India for a long time to meet its energy needs. Despite American sanctions, India did not end trade relations. Medicines, rice, wheat, sugar and cotton clothes exported from India are very important for the common people of Iran. Iran has been a big buyer of Basmati rice. Apart from this, tea, sugar, medicines, auto parts and some engineering goods also go from India to Iran.
What does India order from Iran?
India’s biggest import from Iran has been crude oil. Apart from this, India also imports dry fruits like pistachios and dates, some special chemicals, petrochemical products and glass utensils from Iran. Before the partition in 1947, India and Iran were geographically very close to each other. After the formation of Pakistan, the direct land route was cut off, but both established formal diplomatic relations in 1950. After the visit of the then Prime Minister Indira Gandhi to Iran in 1974, bilateral trade gained a new and strong momentum.
Both countries trade in rupee-riyal
When talks on India-US nuclear deal started and America imposed sanctions on Iran, there was some distance between the two. Despite this, mutual contact never stopped. Instead of dollars, both the countries also trade in rupees and riyals. Today, cooperation between the two countries is continuously increasing in many important areas like energy security, pharmaceuticals, information technology and mining.
Masterstroke of Chabahar Port
To facilitate trade, India is investing heavily in Iran’s Chabahar port. This project is an important diplomatic route to deliver goods to Central Asia and Afghanistan. Even though there is no formal military alliance between the two countries, both have a very clear stance on ending terrorism and they regularly share intelligence information.
Historical connection between the two countries
Apart from the maneuvers of international diplomacy, the real strength of these two countries is their historical connection. Persian language has had a deep impact on the ancient literature and old administrative work of India. Major credit for the expansion of Sufism in the Indian subcontinent goes to Iran. History is witness to the fact that many great Sufi saints had migrated to India from the land of Iran.