What are key outcomes of visit of Iranian President Hassan Rouhani's visit to India?

The visit of Iranian president to India shortly after PM Modi completed his four nation tour of Middle East shows the careful implementation of Think west strategy of Indian diplomacy. The visit of the Iranian PM is a pitch perfect event because of the significant outcomes of the visit which include

• India got the contract to operate the Chabahar Shahid Beheshti port terminalafter the project is completed. The port is strategically important as China is increasing its presence in the gulf and Indian Ocean region with Gwadar port. This will provide opportunities for India on effectively containing Chinese activities in the region.
• Discussions on the mechanisms for increasing the ease of doing business by agreeing for negotiations on double taxation avoidance agreement (DTAA).
• India announced it would allow Indian investment in Iran to be done in rupee terms a concession which is extended only for Bhutan and Nepal. This will allow money lying in Indian banks as payment for imports from Iran to be repatriated. The concerns associated with US sanction on Iran had made Banks to refuse facilitation of transactions.
• Iran has reversed last year’s decision to slash the credit period for oil payments from India. Iran has issued more generous guidelines.
• Iran has endorsed the candidature of India for permanent membership in the UNSC with Veto.
• The joint declaration had a tough stance against terrorism.

The visit of the Iranian president has again reiterated that India and Iran are natural partners. The visit has created enormous opportunities for India. India must act on these opportunities to turn them into advantage for India in global geo-political arena.

Topics: GS-II: India's Foreign Policy Neighbourhood International Relations