Iran holds significant value in India's regional strategy, particularly as a counterbalance to Pakistan. This strategic importance is rooted in historical ties, converging interests, and the evolving geopolitical landscape of the region. Despite periods of strained relations, India has consistently sought to cultivate a strong partnership with Iran, recognizing its potential to serve as a key ally and facilitator of its regional ambitions.
One of the primary reasons for Iran's importance in India's regional playbook is its geographical location. Iran shares borders with Afghanistan and Pakistan, making it a crucial player in the region's stability. For India, Iran provides a gateway to Afghanistan and Central Asia, bypassing Pakistan, which has often been a hindrance to India's access to these regions. This is particularly significant considering India's long-standing interest in fostering closer ties with Central Asian countries, both for economic and strategic reasons.
The Chabahar Port project stands as a testament to the strategic cooperation between India and Iran. Located on the Gulf of Oman, Chabahar Port provides India with direct access to Afghanistan and Central Asia, circumventing Pakistan. India has invested heavily in the development of the port, recognizing its potential to serve as a vital trade and transit hub. In May 2024, India and Iran signed a 10-year contract for the operation of the Chabahar port, further solidifying their commitment to the project. The agreement grants India operational control of the port's terminal for ten years, with an option for automatic renewal.
Beyond its geographical significance, Iran also holds value for India as a counterweight to Pakistan. The two countries have historically had a complex relationship, marked by periods of cooperation and conflict. India views Iran as a potential partner in countering Pakistan's influence in the region, particularly in Afghanistan. Both India and Iran supported the Northern Alliance against the Taliban in Afghanistan in the 1990s, highlighting their shared interest in preventing the country from becoming a safe haven for extremist groups.
Moreover, Iran's strategic location near the Strait of Hormuz, which accounts for a significant portion of the global oil trade, enhances its strategic value for India. While India has reduced its crude oil imports from Iran due to US sanctions, it remains interested in diversifying its energy sources and views Iran as a potential supplier in the future. Restoring energy trade with Iran could help India ensure stable crude supplies at competitive rates.
Despite the potential benefits of a strong India-Iran partnership, several challenges remain. US sanctions on Iran have complicated India's efforts to deepen its ties with the country. India has had to walk a fine line between maintaining its relationship with Iran and adhering to US sanctions. Additionally, differing perspectives on regional issues, such as the conflict in Afghanistan and relations with Israel, have also posed challenges to the India-Iran relationship.
Despite these challenges, India remains committed to strengthening its ties with Iran. India has played a key role in facilitating Iran's membership in key regional groupings, such as the Shanghai Cooperation Organisation (SCO) and BRICS. India has also expressed concerns over attacks on Iranian nuclear sites, reaffirming their complex relationship. The recent conflict between Iran and Israel has further highlighted India's delicate Eurasian diplomacy, balancing ties with both nations.
In conclusion, Iran holds significant value in India's regional playbook as a counter to Pakistan. Its geographical location, strategic assets like Chabahar Port, and shared interests in regional stability make it a crucial partner for India. While challenges remain, India's commitment to strengthening its ties with Iran underscores the strategic importance it places on this relationship.