Does Iran deal spell good tidings for India?

Does Iran deal spell good tidings for India?


The historic Nuclear Deal between P5+1( five permanent members of the UNSC and Germany) and Iran was announced after a long and arduous negotiations between the two parties which has created a new hope not only for Iran but also for the whole world for resolving any dispute by negotiations. The deal will end the global isolation of Iran by removing the tough sanctions on its economy and will also provide space for the use of nuclear energy for peaceful purposes.
The historic deal provides not only great opportunities for India but also new geopolitical challenges.

Economic Opportunities for India

- As the country holding the world’s fourth largest oil and second largest natural gas reserves, Iran complements India, currently the world’s fourth largest consumer and net importer of petroleum products. The deal will provide ample room to Iranian oil to enter the international market, which will not only reduce the price of crude oil but also boost the macro-economic stability of India.

- The deal will provide renewed momentum to the Iranian economy and its various players. Indian private companies will also get benefits by investing in the Iranian economy.

- Indian exports to Iran will become smooth and create opportunities for the country.

- It will also give impetus to the natural gas pipelines proposed among the countries in the region including India and Iran. For instance IPI( Iran-Pakistan-India) pipeline and TAPI( Turkmenistan-Afghanistan-Pakistan-India) pipeline once completed will not only provide energy security but also create conducive climate for stability and cooperation in the region.

Political Opportunities as well as geopolitical challenges for India

- The deal will facilitate a larger Indian role in the Greater Middle East. India can partner with Iran for dealing and solving the intractable issues of the region. The Syrian conflict, religious extremism, terrorism in particular the rise of IS( Islamic State), stability in Afghanistan and Israel- Palestinian issue are the serious issues prevailing in the Middle East region which need to be resolved with the cooperation and negotiations among all countries.

- India can play a constructive role in the region by partnering with Iran, Russia and China for creating the atmosphere of peace and stability in the region.

- However, the thaw between Iran and USA will also create some challenges for India because the deal has created deep anxieties among the America’s traditional allies in the region- including Israel and Saudi Arabia. India will have to maintain a tight rope walk in the region by maintaining a good relationship with Arab countries, Israel and Iran. In the wake of the nuclear deal, tensions between these countries are bound to increase. India will have to consider both the domestic considerations as well as its role as a leader to provide stability and peace in the region.


The historic nuclear deal heralds a new era not only in international cooperation but also facilitate the cooperation between the countries of USA and Iran. In the contradictions of the Middle East Region, India needs to break from the ideological and domestic political considerations and create and develop a new strategy to forge relations with all countries of the region for mutual benefit as well as to create stability in the whole Asia.
Post your comment


  • RE: Does Iran deal spell good tidings for India? -Biswajit Giri (08/06/15)
  • For a developing country like India it is really a good tidings to deal with Iran.This will not only create a good bond among the countries but also improve economic growth.India being one of the top countries to import oil and petroleum the deal really is a good idea.An eye should be kept in keeping peace among the countries.May there are few reasons to be worried of but considering those things India should first improve its economic condition and bring about upliftment by making it a developed country which otherwise would not be possible.