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India and Iraq: Restoring the Old Warmth

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The visit of the Iraqi Prime Minister Nouri-al-Maliki to India this week marks the rapid acceleration of bilateral ties after Delhi's prolonged neglect of Baghdad. The resurgence of Iraq will not only contribute to India's energy security but also widen the basis of India's engagement with the volatile Gulf region.

Until the ouster of the Saddam Hussein regime by the American invasion in early 2003, Iraq used to be India's closest partner in the Middle East. Iraq was a major source of oil imports and Baghdad gave very favourable financial terms.

The India-Iraq partnership was not limited to energy security. Indian public sector companies participated in a big way in Iraq's national construction in the oil boom of the 1970s.

The Indian armed forces had close contacts with their Iraqi counterparts. Saddam Hussein's Iraq also among the few countries in the OIC that stood up for India when Pakistan pushed hostile resolutions on Jammu & Kashmir. Above all India enjoyed extraordinary good will among the Iraqi people.

Delhi's well-rounded partnership with Baghdad began to fray amidst the Iran-Iraq war of the 1980s and Baghdad's international isolation after the first American Gulf war to liberate Kuwait from Iraqi occupation in 1990.

After America's Second Gulf War in 2003 transformed the Iraq's political structure by empowering the nation's Shia majority, the Atal Bihari Vajpayee government briefly considered the U.S. request to send a division of Indian troops to stabilise Iraq. While Vajpayee finally ruled against the proposal, the UPA government's neglect of Iraq that followed has been rather unfortunate.

Since 2003, Iraq slowly but certainly emerged out of a difficult period. As the new rulers of Baghdad opened Iraqi oil fields and economy for international investments, China and other major energy importers rushed in. But India seemed utterly distinterested. Fortunately that has begun to change in the last couple of years.

ith India's energy relationship with Iran under the stress of international sanctions, Iraq has once again become an attractive source of oil for Delhi. Iraq's exports to India, mostly oil jumped from US$ 11 billion in 2011 to more than US$ 20 billion in 2012.

The external affairs minister, Salman Khurshid traveled to Baghdad in June and the Iraq's Deputy Premier in charge of the energy sector, Ibrahim Shahristani was in India earlier this month pitching for Indian investments.

As the Indian leaders meet Maliki this week, they need to appreciate the return of Iraq as a major shaper of regional balance of power in the Middle East along with Iran, Saudi Arabia, Egypt and Turkey.

To be sure, Iraq has been hit by fresh sectarian violence between the Shia and the Sunni. Tension tension between the Arabs and Kurds remains a source of instability. Iraq's close relations with Shia Iran worry some of the Sunni Arab states.

Yet there is no denying that Baghdad's relative weight in the Middle East can only grow in the coming years. This, in turn, provides Delhi yet another pillar for the conduct of an effective policy towards the Middle East.

India and Iraq: Restoring the Old Warmth - Indian Express

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India, Iraq to explore possibility of trading in local currencies | Business Line

NEW DELHI, AUG 23: India and Iraq will look at the possibility of trading in their local currencies, Commerce & Industry Minister Anand Sharma has said. This would insulate India’s oil imports from Iraq from the volatile movement of the Indian rupee against the US dollar.

“We are exploring the possibility of trading in local currencies, the dinar and rupee. Our officials will discuss this,” Sharma said on Friday, addressing a session organised by Indian business chambers with Iraqi Prime Minister Nouri Kamil Al-Maliki.

The Iraqi PM, too, assured industry that his Government was aware of exchange-related problems. “We are working to resolve the problem,” Al-Maliki said answering an industry representative who raised concerns about exchange rate losses.

The meet was organised by industry chambers CII, FICCI and Assocham. Sharma also stressed on Iraq’s growing importance in meeting India’s energy needs

“Iraq has emerged as the second largest exporter of oil to India. In the coming months, no doubt it will compete for the top spot,” the Minister said.

India imported 24 million tonnes of crude from Iraq in 2012-13, which was second only to Saudi Arabia. Iraq toppled Iran as the second largest supplier of oil to Iran more than a year back, following US and EU sanctions on the country.


Pharmaceuticals, health services, IT and auto components are the other areas where Iraq holds huge opportunities for Indian business, the Minister said.

Al-Maliki said Iraq had missed out on a number of opportunities during the years of dictatorship and wanted to learn from India’s experience and expertise. Apart from trading in oil, Iraq and India could form partnerships for exploration of oil and building of oil refineries. Agriculture, health and education, too, held a lot of prospects.

The two countries are looking at finalising a number of MoUs in areas such as the energy sector, fertiliser, agriculture, trade, healthcare, legal assistance and science and technology. Many of these MoUs are expected to be signed during the Iraqi PM’s on-going visit.
 
Here we have India that supported the destruction of Iraq now wanting relationships. Don't trust Indians for a second.
 
Here we have India that supported the destruction of Iraq now wanting relationships. Don't trust Indians for a second.

:lol: The Iraqis themselves supported the US. The current prime minister of Iraq was appointed under U.S. And plus India didn't participate in the Iraq war.

0/10 for trolling

0/10 for knowledge.
 
Here we have India that supported the destruction of Iraq now wanting relationships. Don't trust Indians for a second.


funny chini.... you are ignorant enough to know that India opposed every move against saddam..

comedians are more & more becoming interested in defence matters...
 
I hope Iran - Iraq relations are good with the new regime :cheers:

India is a friend of all.

why r u such a nice human being??:D:kiss3:

Here we have India that supported the destruction of Iraq now wanting relationships. Don't trust Indians for a second.

farty farty fart comment (no insult bro just kidding):lol:
when did india support the distruction of anyone??
your enemity with india shouldnt make u posting bs comments
 
funny chini.... you are ignorant enough to know that India opposed every move against saddam..

comedians are more & more becoming interested in defence matters...

Yea right.

India has supported every war western imperialists have started. When was the last time India opposed the west in ANYTHING?

Don't give me your BS here.
 
The fact is Pakistan backed Saddam and the Sunnis during the Iraq-Iran War and India supported Iran and the Shias. Now that the Shias have taken power in Iraq, Iraq and India will move closer together.

Its a natural convergence of two countries driven together by the buffoonish foreign policy of Pakistan.
 
The fact is Pakistan backed Saddam and the Sunnis during the Iraq-Iran War and India supported Iran and the Shias. Now that the Shias have taken power in Iraq, Iraq and India will move closer together.

Its a natural convergence of two countries driven together by the buffoonish foreign policy of Pakistan.

well bro, thats just not true
pakistan and syria were the only (muslim nations) supporting iran during the war
and about indian support during war , first its challenged by some people
second not every thing in world is based on sect and ethnicity
why indian support for iran should lead to good relations with iraq?
iraq is a sovereign nation:D
 
The fact is Pakistan backed Saddam and the Sunnis during the Iraq-Iran War and India supported Iran and the Shias. Now that the Shias have taken power in Iraq, Iraq and India will move closer together.

Its a natural convergence of two countries driven together by the buffoonish foreign policy of Pakistan.

India didn't back anyone, neither Sunni Saddam nor Shia Iran. We were neutral, which is why we had good relationship with both Iraq and Iran.
 

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