What could be the ramifications of failure of Iran Nuclear deal on India's interests? Analyze.
Joint Comprehensive Plan of Action (JCPOA) also known as Iran Nuclear deal is an international between Iran and P5+1 to limit Iran’s nuclear program. However recently US has threatened to exit from the agreement. US withdrawal from deal can lead to restoration of sanctions on Iran. This could have implications on India’s interest.
- Restoration of sanction will restrict the India’s ambitions to boost economic relationship with Iran.
- Oil is India’s prime import from Iran, however revival of sanctions on Iran will impact oil prices. This will hurt India as it imports the major chunk of oil from Middle East. Apart from that economic sanction on Iran will also hamper India’s export to Iran. Also this will impact India’s pharmaceutical and IT companies which were exploring avenues of new business opportunities in Iran.
- Due to economic sanction on Iran the trade via Chabhar port will also be limited.
- Also, the distance between USA and Iran is not good from Indian perspective as this will increase USA’s dependency on Pakistan.
- Due to its strategic location, Iran is pivot element of India’s connectivity to Afghanistan and central Asia. Therefore sanctions on Iran will directly or indirectly hurt India’s program.
- Apart from that the US withdrawal from deal and restoration of sanctions may lead to volatility in the region again, which won’t be good from Indian perspective.
Therefore the failure of Iran deal will have widespread ramifications not only for Iran but also for the rest of the world.