Relations Between India and Iran
Explore the deep and multifaceted relations between India and Iran, extending from ancient civilizations, encompassing trade, culture, energy security, and regional stability.
Historical Ties
Civilizational links spanning thousands of years.
Chabahar Port
India's gateway to Central Asia.
Energy Security
A crucial source of crude oil and gas.
Regional Stability
Shared interests in Afghanistan and the Middle East.
History and Cultural Ties
The relationship between India and Iran spans centuries, defined by ancient civilizational exchanges and strong cultural bonds.
Ancient Civilizational Links
The ties between India and Persia (Iran) date back thousands of years, extending to trade routes between the Indus Valley Civilization and Mesopotamia. Diplomatic relations between independent India and Iran were established on March 15, 1950. Both nations have enriched each other in the fields of language, religion, arts, culture, food, and other traditions.
Persian Influence
During the Mughal era, India was deeply influenced by Persian language, art, and architecture. The influence of Sufism also came to India from Iran. Persian elements can still be seen in Indian literature, music, and painting today, indicating the enduring cultural exchange between the two nations.
Key Historical Events
- **Ancient Times:** Export of spices, gems, and cotton from India to Iran, and import of perfumes, carpets, and art materials from Iran, via silk and sea routes.
- **1950:** Establishment of diplomatic relations between independent India and Iran.
- **Mughal Era:** Spread of Persian language, Sufism, and architectural styles in India.
Economy and Trade Relations
Economic relations are a crucial pillar of the India-Iran partnership, with Chabahar Port holding strategic importance.
Chabahar Port: Gateway to Central Asia
Located in Iran's Sistan and Baluchistan province, Chabahar Port is a vital route for India to access Central Asia and Afghanistan, bypassing Pakistan. India has signed a 10-year agreement with Iran for the management of Chabahar's Shahid Beheshti Terminal. This port is also a key entry point to the International North-South Transport Corridor (INSTC), a multimodal network connecting India, Iran, Russia, Central Asia, and Europe, reducing transport costs and time.
In 2021, India provided 40,000 liters of eco-friendly pesticide malathion to Iran through Chabahar Port to combat locust attacks.
Energy Trade and Sanctions' Impact
Historically, Iran has been one of India's top oil suppliers, playing a crucial role in India's energy security. However, due to US sanctions on Iran and global pressure, oil imports have been hampered. Despite this, India has maintained trade relations with Iran in various other sectors. In the 2022-23 fiscal year, bilateral trade reached 2.33 billion dollars.
In March 2025, India exported $130 million to Iran (primarily Basmati rice, sugar), while importing $43 million from Iran (primarily fresh fruits, petroleum products).
India-Iran Trade Balance (March 2025)
Strategic and Geopolitical Importance
The strategic relationship between India and Iran is vital for promoting regional stability and connectivity, especially in a volatile geopolitical landscape.
Regional Connectivity and INSTC
Through Chabahar Port, India aims to boost trade and connectivity with Afghanistan and Central Asian republics. This is an integral part of the International North-South Transport Corridor (INSTC), a multimodal network connecting India, Iran, Russia, Central Asia, and Europe, reducing transport costs and time.
Multilateral Cooperation
India and Iran collaborate on various multilateral forums, such as BRICS (Brazil, Russia, India, China, South Africa) where Iran recently became a full member. Both countries regularly consult on regional stability, counter-terrorism efforts, and energy security.
Challenges and Future Prospects
The India-Iran relationship faces several geopolitical and economic challenges, but both nations are committed to strengthening their partnership.
Impact of US Sanctions
US sanctions on Iran have made it challenging for India to import oil from Iran, leading to fluctuations in bilateral trade. However, India has maintained trade in humanitarian aid and non-sanctioned goods.
Regional Tensions
Escalating tensions between Iran and Israel could impact India's trade with West Asia, especially oil supply chains. India has maintained a neutral stance in the conflict, calling for peace and restraint.
Way Forward
By focusing on strategic projects (like Chabahar), energy cooperation, and regional stability, India and Iran are laying the groundwork for a stronger and more resilient partnership. Regular high-level consultation mechanisms also exist between the two countries.
The relationship between India and Iran is a testament to the enduring ties between two ancient civilizations, driven by shared interests and strategic imperatives.