Iran has intensified its efforts to restore robust economic ties with India. The renewed push, led by President Masoud Pezeshkian’s administration, focuses on resuming oil trade and easing visa policies to foster deeper people-to-people connections, according to a senior Iranian official.
The official highlighted that prior to the sanctions imposed in 2018, India and Iran enjoyed strong bilateral trade, particularly in the oil sector. However, under pressure from the United States, India ceased importing Iranian crude in 2019. This shift disrupted the long-standing reliance of Indian refineries on Iranian oil, compelling them to adapt to alternatives from other suppliers.
Impact of Sanctions on Bilateral Trade
Iran has faced over 1,500 economic sanctions since 2018, imposed by the Trump administration. These restrictions have severely impacted Iran’s economy and bilateral trade relations. The official expressed regret over the decline in trade with India, emphasizing the importance of rekindling this partnership.
“We understand why India had to follow the sanctions, but the continuous fall in trade is not beneficial for either country,” said the official, who preferred to remain anonymous.
Tehran is determined to avoid creating any “hardship” for India as it advocates for the resumption of oil imports. Simultaneously, Iran proposes boosting trade in non-energy sectors, such as agriculture, to diversify the economic relationship.
Focus On Connectivity And Strategic Collaboration
The Iranian official underscored the strategic importance of the Chabahar Port, urging India to leverage it fully to establish a connectivity corridor linking India, Iran, Central Asia, and Europe. Both nations are actively working on operationalizing the International North-South Transport Corridor (INSTC), with Chabahar Port as its centerpiece.
In a visionary step, Iran is also planning an undersea tunnel to connect with Qatar, further strengthening regional connectivity. Additionally, Tehran’s prospective strategic partnership with Russia and growing ties with China signify Iran’s broader efforts to establish a resilient geopolitical network.
Call For Enhanced People-To-People Engagement
Visa facilitation is a key element of Iran’s renewed agenda. “Iranians want to visit India, and we welcome Indian tourists to explore Iran,” the official said, emphasizing the cultural and historical ties between the two nations.
Iran’s commitment to deepening bilateral relations extends to supporting humanitarian efforts. Addressing the case of Nimisha Priya, an Indian nurse facing a death sentence in Yemen, the official assured that Iran will engage diplomatically on this sensitive issue.
With its strategic focus on trade, connectivity, and people-to-people ties, Iran is laying the groundwork for a revitalized partnership with India, seeking mutual growth and regional stability.