India–Iran relations

India–Iran relations constitute a historically rich and strategically significant bilateral partnership shaped by civilisational ties, cultural affinity, regional connectivity, and shared geopolitical interests. Located across the Arabian Sea, both countries have interacted for centuries through trade, maritime exchange, migration, and intellectual traditions. In the modern era, their relationship has encompassed cooperation in energy security, regional stability, infrastructure development, and multilateral diplomacy. Despite external pressures and shifting global alignments, India and Iran continue to maintain a pragmatic and multifaceted engagement rooted in mutual economic and strategic considerations.
The partnership reflects complementary strengths: Iran’s strategic location linking South Asia with Central Asia and the Middle East, and India’s role as a major economy with growing regional influence. Together, they seek to create avenues for connectivity, secure energy access, and promote balanced regional development.

Historical Background

Civilisational links between India and Iran date back several millennia. Cultural exchanges occurred along ancient trade routes across the Persian Gulf and overland corridors. Persian served for centuries as a language of administration, literature, and diplomacy in medieval India, influencing art, architecture, poetry, and court culture. Religious and philosophical interactions also shaped mutual cultural understanding.
Diplomatic relations in the modern period began soon after India’s independence. Through the second half of the twentieth century, both countries cooperated in forums such as the Non-Aligned Movement and supported wider regional issues. Despite geopolitical shifts—such as the Iranian Revolution and changes in global power equations—the partnership gradually expanded in areas such as trade, energy, and cultural relations.

Political and Diplomatic Engagement

India and Iran maintain regular diplomatic consultations through high-level visits, ministerial dialogues, and intergovernmental committees. Key features of their political engagement include:

• Shared regional interests, particularly regarding stability in West Asia, the Persian Gulf, and Afghanistan.
• Cooperation in multilateral platforms, including the United Nations, the Shanghai Cooperation Organisation (SCO), and regional economic bodies.
• Strategic dialogue mechanisms that address trade policy, connectivity projects, and security concerns.
• Long-term diplomatic goodwill, supported by historical ties and mutual respect.

This political engagement forms the basis for cooperation across multiple sectors.

Energy Cooperation

Energy has historically been the cornerstone of India–Iran relations. Iran, possessing large reserves of oil and natural gas, has been a significant supplier of crude oil to India. Key aspects include:

• Crude Oil Imports: India imported considerable volumes of Iranian crude, contributing to its energy security.
• Payment Mechanisms and Sanctions Issues: External sanctions periodically affected trade flows, leading both countries to devise alternative financial channels.
• Potential for Natural Gas Cooperation: Proposals such as the Iran–Pakistan–India (IPI) pipeline and liquefied natural gas (LNG) deals illustrate long-term interest, though implementation has faced constraints.
• Upstream and downstream cooperation, including refinery agreements and investment discussions.

While sanctions have moderated certain aspects of energy trade, the sector remains central to long-term bilateral interests.

Connectivity and Infrastructure Projects

Connectivity initiatives represent a critical dimension of India–Iran cooperation, aimed at strengthening linkages between South Asia, Central Asia, and Eurasia. The most prominent projects include:

• Chabahar Port: India’s development of terminals and related infrastructure at Chabahar in southeastern Iran, enabling access to Afghanistan and Central Asia while bypassing traditional routes.
• International North–South Transport Corridor (INSTC): A multimodal transport network linking India with Iran, Russia, Central Asia, and Europe to reduce transport time and cost.
• Rail and road connectivity, particularly the Chabahar–Zahedan railway integration.

These projects enhance India’s strategic access to continental trade routes and support regional economic development.

Economic and Trade Relations

Trade between India and Iran includes petroleum products, agricultural commodities, textiles, chemicals, and machinery. Key features include:

• Agricultural trade, particularly basmati rice, tea, sugar, and cereals exported from India.
• Petrochemicals and fertilisers, forming significant import items.
• Investment potentials in pharmaceuticals, IT services, and small industrial units.
• Trade challenges, including payment restrictions and logistical hurdles due to sanctions regimes.

Despite periodic fluctuations, both countries continue to explore avenues for expanding commercial exchanges.

Security and Regional Cooperation

Strategic cooperation between India and Iran reflects convergent interests in:

• Stability in Afghanistan, given both countries’ concerns about extremism, terrorism, and regional instability.
• Maritime security in the Indian Ocean and Persian Gulf regions.
• Counter-terrorism initiatives, focusing on preventing cross-border extremism.
• Drug trafficking control along regional transit routes.

These shared concerns support sustained security dialogue and coordination.

Cultural and People-to-People Relations

Strong cultural ties reinforce the bilateral relationship:

• Historical linguistic and literary links, particularly through Persian influence in Indian heritage.
• Cultural exchanges involving films, art exhibitions, academic collaborations, and music traditions.
• Diaspora connections, with Indian communities in Iran and cultural bodies promoting mutual understanding.
• Religious and spiritual linkages, including shared heritage in Sufism.

These elements help maintain goodwill and continuity in societal relations.

Challenges in the Relationship

India–Iran ties face several challenges, largely shaped by external geopolitical factors:

• Sanctions on Iran, affecting energy trade, banking channels, and infrastructural investments.
• Regional alignments, including India’s partnerships with Gulf countries and Israel.
• Competition in connectivity routes, arising from other regional projects.
• Diplomatic balancing, as India seeks stable relations with multiple actors in West Asia.

These challenges require pragmatic management to sustain long-term cooperation.

Strategic Significance and Future Prospects

India–Iran relations continue to be strategically important due to:

• Iran’s geopolitical location linking India with Central Asia and Eurasia.
• India’s need for energy security and diversified suppliers.
• Opportunities in connectivity, infrastructure, and regional trade corridors.
• Shared interests in regional stability and counter-terrorism.