Ameya Joshi asked: How is India-Iran relationship compared to China-Iran relationship?

Mahtab Alam Rizvi replies: Despite economic sanctions against Iran, India has maintained cordial relations with the people and the government of Iran. Strong historical and cultural linkages continue to provide opportunities for the two nations to enrich and enhance their bilateral relations. The Chabahar Port is expected to further cement strategic engagement between India and Iran. However, lack of active interest on the part of India in developing the port, a strategic offer by Iran, has often left Tehran disappointed. Iran believes that the window of opportunity available to India may close with China and many Western countries rushing in to take advantage of the ongoing rapprochement between Iran and the West.

The India-Iran relations are far behind when compared to the growing Iran-China economic engagement. The Chinese investments in Iran are huge and much larger than that of India. Trade between Iran and China stood at US$ 47.5 billion in 2014, indicating a 36 per cent growth compared to previous year. According to China's General Administration of Customs, China's total export to Iran was US $22 billion in 2014, about 87 per cent rise compared to US $11.7 billion the previous year. Whereas, India’s total trade with Iran stood at US$ 15 billion in 2014, only 2.23 per cent growth compared to the previous year.

Posted on March 09, 2015