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6 - India’s Relations with Iran: Looking beyond Oil

Published online by Cambridge University Press:  25 September 2025

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Summary

Introduction

The India-Iran relationship is often looked at through the prism of New Delhi’s growing energy needs. While this viewpoint draws upon the fact that India imports a large amount of crude oil from Iran, it does not tell the whole story. India’s ‘other’ relations with Iran are founded on deep strategic considerations that are not so overt, but immensely significant. A rapidly growing economy has fuelled India’s major power ambitions, which now appear realistic and attainable. India is eager to reach out to other states in its neighbourhood in accordance with the vision of outwards expansion of power and influence. India’s ties to Iran are pivotal here as it facilitates New Delhi’s easy access to Afghanistan and Central Asia, two crucial theatres where it seeks to establish a presence and project power. In addition, India considers cooperation with Iran crucial in stemming the tide of radical Sunnism emanating from the Afghanistan-Pakistan region. Within the ambit of security ties, India has multiple stations at sensitive locations on Iranian territory, which are believed to operate as intelligence posts to monitor activities in the Gulf waters. While it is true that India reversed its traditional position by voting against the Iranian nuclear programme at the IAEA and has forged strategic ties with the United States, New Delhi has refused, unlike the Western powers, to isolate Iran, and has reiterated Tehran’s right to peaceful uses of nuclear energy within the broad rubric of the NPT. Iran is, thus, a complex relationship for India, combining important policy drivers such energy security, strategic considerations and political ambitions.

Contours of India-Iran Ties

During the Cold War years, ties between India and Iran were constrained by contradictory alliances and leanings. While Iran aligned itself with the West, a newly independent India adopted the policy of non-alignment i.e. a relationship of equidistance from the superpowers. Iran’s preference for Pakistan as an ally and its support for the latter during the Indo-Pakistan wars in 1965 and 1971, strained relations between India and Iran. The Islamic Republic’s anti-India votes on Kashmir after the Revolution of 1979 and support for Kashmir insurgency further weakened bilateral ties, even as Iran joined the Non-Aligned Movement in a radical break from the pro-Western orientation of the Shah. Although economic cooperation between them continued throughout this period, it was generally lowkeyed and confined primarily to trade in crude oil.

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Chapter
Information
A New Gulf Security Architecture
Prospects and Challenges for an Asian Role
, pp. 115 - 140
Publisher: Gerlach Books
Print publication year: 2014

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