New Delhi: During the meeting, Prime Minister Modi discussed with the Iranian President the importance of enhancing India-Iran bilateral trade relations in the wake of continuing interdependent development and the cooperation organization’s Shanghai Cooperation Organisation (SCO) Summit in Bishkek, Kyrgyzstan. This meeting is been scheduled at a time when the United States is pressing to Iran to comply with its restrictions, as well as to warn other nations that they will going to be held responsible if they allow Tehran to evade America’s sanctions.
During this meeting, Modi has emphasized India’s desire to diversify and broaden its trade ties with Iran. These two leaders has also discussed bilateral relations and said they were following closely the situation in the West Asia region which has seen rising tensions.
India and Iran have long been close friends, with the cooperation in various fields, by including trade, connectivity, and the development of Chabahar Port. India also believes Iran plays a crucial role in access to markets in Central Asia and beyond.
But the drive towards better economic connections has gone hand in hand with a warning from the United States. US Secretary of State Marco Rubio said he didn’t think that India and Iran were in the talks of a new trade deal now. Meanwhile, he cautioned countries against aiding Iran to circumvent US sanctions.
Countries have freedom of choice in foreign policy and may keep in touch with Iran, Rubio said. Still, he emphasized that no countries should move to some form of mechanism that would enable Tehran to evade the sanctions or to earn money that Washington thinks it should ban from the Iranian government for its activities. He also said that nations assisting Iran in getting around sanctions may be targeted by the U.S. sanctions as well.
The warning puts India into a tough spot, traditionally having strong ties to both Washington and Tehran. New India has been continuously involved with Iran, and is developing its strategic relationship with the United States.
Indian trade with Iran has already been affected by US sanctions and the shipping and financial woes in the region. Payment systems, shipping expenses and availability of traditional trade routes have also been issues for Indian exporters of products such as rice, tea and pharmaceuticals.
In the talks with Pezeshkian, Modi also talked of the significance of peace and stability in the West Asia region. India is urging for solving disputes in the region in a peaceful manner, not through war.
Modi has also underlined the importance of ensuring freedom of navigation and international trade. In the midst of ongoing regional tensions, he said that commercial shipping, seafarers, civilians and civilian infrastructure must be protected.
The Indian Prime Minister also requested Pezeshkian’s participation in the upcoming BRICS Summit in New Delhi. India has indicated its willingness to cooperate with Iran on the multilateral platforms like the BRICS group and the SCO.
The developments reflect the fine balancing act India is attempting to do. New Delhi is seeking to broaden its ties with Iran on the economic and security fronts, but without further putting pressure on or subjecting it to new U.S. sanctions.
