After reading this article you can solve this UPSC Mains Model question:
“India–Iran relations are rooted in deep civilisational ties but are increasingly shaped by contemporary geo-economic and strategic considerations.” Discuss the significance of connectivity initiatives, security cooperation and diversification beyond energy in strengthening this partnership. Also analyse the challenges that constrain its full potential. (GS-2 International Relations)
Civilisational Roots:
1. The Indo-Iranian Shared Homeland
The connection begins in prehistory. On a linguistic and genetic level, the Indo-Iranians once shared a common homeland in Central Asia (the Oxus Valley) before bifurcating into the Iranian and Indo-Aryan branches.
- Linguistic Mirroring: The Avestan (ancient Persian) and Sanskrit (ancient Indian) languages are remarkably similar. Key concepts like Rita (Cosmic Order) in Sanskrit find their reflection in Asha in Avestan.
- Early Trade: As noted in the article, trade routes between the Indus Valley and Mesopotamia/Persia carried carnelian, lapis lazuli, and turquoise, weaving the two economies together as early as 3000 BC.
2. The “Persianate” Era in India
For nearly 800 years, Persian was the language of administration, law, and high culture in India—a period the editorial refers to as a “literary synthesis.”
- Sabk-e Hendi (The Indian Style): This is a unique school of Persian poetry that flourished in India under the Mughals and the Deccan Sultanates. It is characterized by complex metaphors and “fresh speech” (taza-gu’i).
- Bedil Dehlavi: The editorial specifically highlights Mirza Abdul-Qadir Bedil (1642–1720) as the bridge. While his style was once considered “difficult” in Iran, it is revered in India, Afghanistan, and Central Asia. Bedil’s philosophy of “astonishment” and humanism remains a shared intellectual heritage.
- Panchatantra to Kalileh-wa-Dimna: Many Indian Sanskrit texts survived only because they were translated into Persian. The Panchatantra traveled back to India in its Persian avatar, Kalileh-wa-Dimna, completing a civilisational loop.
3. Spiritual and Social Confluence
- Sufism and Bhakti: The editorial points to the interaction between Persian Sufism and the Indian Bhakti movement. Figures like Amir Khusrau (the “Parrot of India”) used Persian forms to express local Indian sentiments, creating a syncretic cultural vocabulary.
- The Parsi Community: India is the proud home of the Zoroastrian (Parsi) community, who migrated from Iran over a millennium ago. They represent a living civilisational link, contributing disproportionately to India’s modern industrial and cultural renaissance.
4. Modern Strategic Implications
- Soft Power Diplomacy: As India pursues its “Act West” policy, these civilisational links provide a layer of “trust” that transcends transactional energy trade.
- Non-Alignment to Multipolarity: Both nations share a historical memory of resisting colonial/Western domination—India through its anti-colonial struggle and Iran through its revolution. This shared “anti-hegemonic” outlook makes them natural partners in a multipolar world order.
Connectivity and Geo-economics:
1. Chabahar Port as a Strategic Gateway
- Chabahar Port provides India direct access to Afghanistan and Central Asia, bypassing Pakistan.
- It enhances India’s role in regional trade, humanitarian assistance, and infrastructure development.
- For Iran, Chabahar strengthens its position as a regional transit hub, integrating it into Eurasian supply chains.
2. International North–South Transport Corridor (INSTC)
- The International North–South Transport Corridor links India with Iran, Russia and Europe via road, rail and sea routes.
- It reduces transit time and cost compared to traditional sea routes via the Suez Canal.
- The corridor supports India’s export competitiveness and supply-chain diversification.
3. Geo-economic Significance
- Connectivity shifts India–Iran ties from energy dependence to trade-led interdependence.
- Strengthens India’s presence in Eurasia, aligning with its vision of strategic autonomy in a multipolar world.
- Offers a counter-balance to competing connectivity initiatives by embedding India in continental trade networks.
4. Strategic Constraints
- Sanctions and regional instability pose operational challenges, requiring diplomatic balancing and sustained engagement.
Security and Strategic Autonomy:
1. Counter-Terrorism: The “Quiet Convergence”
- Shared Adversaries: Both nations view the resurgence of groups like ISIS-K and Al-Qaeda as a direct threat to regional stability.
- Mechanism: In late 2025, India and Iran intensified their “Security Consultations” at the Deputy NSA level. This involves real-time intelligence sharing on cross-border militant movements in the West and South Asian regions.
- SCO Framework: Both nations now interact within the Shanghai Cooperation Organization (SCO), specifically through the Regional Anti-Terrorist Structure (RATS), which conducted joint exercises in late 2025 (e.g., the Sahand-2025 drill) to counter “terrorism, separatism, and extremism.”
2. The Afghanistan Reset
The most complex security challenge for both nations is the Taliban-led Afghanistan.
- Pragmatic Engagement: In October 2025, India restored full diplomatic relations with the Taliban administration, upgrading its Technical Mission to an Embassy. Iran has similarly maintained a working relationship with Kabul.
- Common Goal: Both Delhi and Tehran seek an “inclusive government” in Kabul and are united in ensuring that Afghan soil is not used as a launchpad for terror against their respective territories.
- Chabahar as a Security Anchor: By providing Afghanistan with a trade outlet through Iran’s Chabahar Port, both nations are attempting to reduce Kabul’s dependence on Pakistan, thereby limiting the “strategic depth” Pakistan once enjoyed.
3. Strategic Autonomy: The “De-hyphenated” Balancing Act
India’s relationship with Iran is a masterclass in its policy of “Strategic Autonomy.”
- Navigating the Israel-Iran War (June 2025): During the brief 12-day military conflict between Israel and Iran in mid-2025, India maintained a “calculated neutrality.” It urged de-escalation while refusing to join international statements that targeted only one side, protecting its assets in both the Mediterranean and the Persian Gulf.
- The U.S. Factor: In October 2025, India successfully secured a six-month sanctions waiver for Chabahar Port from the U.S. This demonstrates India’s leverage: Washington recognizes that India’s presence in Iran is a necessary counterweight to Chinese influence (BRI) in the region.
4. Security Challenges
Despite the partnership, there are friction points:
- Maritime Security: The increasing activity of the Baloch Liberation Army (BLA) in the border regions of Sistan-Baluchestan (Iran) and Balochistan (Pakistan) poses a threat to the safety of the Chabahar-Zahedan railway project.
- Regional Rivalries: Iran’s support for groups like the Houthis (which disrupt Red Sea trade) sometimes clashes with India’s interest in maritime shipping safety, requiring delicate diplomatic “red-line” management.
Diversification Beyond Energy:
1. The Digital-Scientific Synthesis
The most significant development in late 2025 is the formalization of the India-Iran Science & Technology (IIST) Bridge.
- India’s Role: Exporting expertise in AI-driven governance, fintech (UPI and RuPay integration in Iran), and large-scale IT infrastructure.
- Iran’s Role: Iran has emerged as a global leader in Nanotechnology (ranked 4th globally in research output) and Biotechnology. In November 2025, the two countries signed a roadmap for joint R&D in “Nano-medicines” and advanced materials for the electronics industry.
2. Health and Pharmaceuticals
The pandemic and subsequent global supply chain disruptions have pushed both nations toward “health sovereignty.”
- Generic Drug Synergy: While India is the “Pharmacy of the World,” Iran has advanced capabilities in Complex Biologics and specialized vaccines.
- Medical Tourism: A new “Medical Visa Corridor” was established in mid-2025, facilitating easier travel for Iranian patients to Indian specialty hospitals, while Indian firms are setting up production units in the Kish Free Zone to serve the West Asian market.
3. Space and Satellite Technology
- Remote Sensing: India’s ISRO and the Iranian Space Agency (ISA) are discussing collaboration on Satellite-based Agriculture Monitoring.
- Launch Capabilities: Iran is seeking India’s assistance in launching small satellites via the SSLV (Small Satellite Launch Vehicle), while providing India with data from its own orbital constellation to monitor the Persian Gulf’s maritime traffic.
4. Agriculture and Food Security
- Contract Farming: Discussions are underway for Indian agro-firms to engage in contract farming in the fertile Khuzestan province of Iran to secure pulse and oilseed supplies.
- Agri-Tech: India is exporting precision irrigation systems and drought-resistant seed technology to help Iran combat its chronic water scarcity.
5. Educational & Human Capital Exchange
- Joint PhD Programs: IIT-Delhi and the Sharif University of Technology (Tehran) launched a joint research initiative in Renewable Energy and Quantum Computing in December 2025.
- Heritage Tourism: A “Civilizational Circuit” is being developed to promote tourism between Persian sites in India (like Lucknow and Hyderabad) and historical sites in Iran (Isfahan and Shiraz).
Challenges:
1. The “Maximum Pressure” 2.0 & Sanctions Risk
The most immediate challenge is the revocation of the Chabahar sanctions waiver by the U.S. (effective September 29, 2025).
- Equipment Bottlenecks: Secondary sanctions make global manufacturers (like Liebherr or ZPMC) hesitant to supply heavy-duty cranes and rail equipment to Chabahar, fearing a lockout from the U.S. financial system.
- Financing Hurdles: Despite the ₹100 crore operational loan from India in 2025, commercial banks remain reluctant to facilitate rial-rupee payments, leading to delays in the Chabahar-Zahedan railway project.
2. Regional Rivalries: The West Asian Fault Lines
India’s “Strategic De-hyphenation” is being tested by the direct Iran-Israel conflict (June 2025).
- The I2U2 vs. INSTC Dilemma: India is a member of the I2U2 (India, Israel, UAE, US), which Iran views with suspicion. Balancing this with the INSTC (where Iran is the central node) requires a diplomatic “masterclass.”
- Maritime Disruptions: Iran’s support for proxy groups like the Houthis (which target Red Sea shipping) directly impacts Indian trade security, creating a friction point between the two nations’ maritime doctrines.
3. Internal Instability: The Baloch Factor
The security of India’s investments in the Sistan-Baluchestan province is increasingly threatened by internal unrest.
- Insurgency Risk: A resurgence of the Baloch insurgency in Iran (late 2025) targets high-profile infrastructure projects. This mirrors the challenges China faces in Pakistan’s Gwadar port, just 170 km away.
- Border Tensions: Frequent skirmishes on the Iran-Pakistan border disrupt the planned land-linkages between Chabahar and the broader Central Asian markets.
4. The “China Shadow”
Iran’s deepening 25-year Strategic Partnership with China poses a long-term challenge for India.
- Resource Competition: With China being the primary buyer of Iranian oil at discounted rates, India finds itself competing for influence and preferential treatment in Iranian infrastructure and energy projects (like the Farzad-B gas field).
- Strategic Encirclement: India must ensure that Chabahar does not eventually fall into a “debt-trap” or shift towards Chinese control if Indian investments remain stalled by sanctions.
Way Forward:
1. Institutionalizing the “Strategic Reset”
- 2+2 Ministerial Dialogue: Experts suggest establishing a “2+2” mechanism (Foreign and Defense Ministers) similar to India’s ties with the US and Japan. This would ensure real-time coordination on maritime security and counter-terrorism.
- 75th Anniversary Momentum: Using the 2025–26 milestone of 75 years of diplomatic ties to finalize the Preferential Trade Agreement (PTA) and the Bilateral Investment Treaty (BIT), which have been in discussion for years.
2. Financial “Sanction-Proofing”
- Rupee-Rial Trade Mechanism: Accelerating the “Vostro Account” model to facilitate trade in essential goods (pharma, food, and machinery) without triggering secondary U.S. sanctions.
- CBDC Integration: Exploring the use of Central Bank Digital Currencies (CBDCs) for cross-border settlements between the RBI and the Central Bank of Iran, creating a digital “financial corridor” that operates outside the SWIFT network.
3. Expediting the “Chabahar-Zahedan” Rail Link
- 2026 Deadline: India must ensure the Chabahar–Zahedan railway line is completed by its mid-2026 target. This link is the “jugular vein” that will finally connect Indian goods to the Afghan border and the broader INSTC network.
- Private Sector “Plug-and-Play”: Creating an “Economic Special Zone” at Chabahar where Indian private firms in urea, aluminum, and petrochemicals can set up plants, moving the project from a “transit point” to a “production hub.”
4. Multipolar Diplomacy: The “BRICS-SCO” Leverage
- Collective Security: Using the SCO’s RATS (Regional Anti-Terrorist Structure) to coordinate a shared response to the “Islamic State” and other extremist groups in the “Golden Crescent” (Iran-Afghanistan-Pakistan border).
- Eurasian Integration: Positioning the INSTC not just as a trade route, but as a “Civilizational Bridge” that offers a humane and participatory alternative to the China-led BRI.
5. Energy 2.0: Beyond Crude Oil
- Iran-Oman-India Pipeline: Reviving the feasibility of a deep-sea gas pipeline that bypasses the land-route vulnerabilities of the IPI (Iran-Pakistan-India) pipeline.
- Green Hydrogen: Collaborating on renewable energy research, where India’s “Green Hydrogen Mission” can partner with Iran’s vast land and solar potential.
Conclusion:
The India–Iran partnership is uniquely anchored in shared civilisational heritage yet shaped by contemporary strategic realities. Connectivity initiatives, security cooperation and diversification beyond energy provide a pragmatic pathway to sustain engagement despite geopolitical constraints. A calibrated, forward-looking approach—balancing strategic autonomy with regional stability—can transform this ancient linkage into a resilient modern partnership that serves India’s long-term geopolitical and geo-economic interests.
