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Indo-Iran trade ties come under pressure

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WASHINGTON: America's renowned " Jewish lobby" has turned the spotlight on India over its continuing ties with Iran. Pressure from supporters of Israel comes even as US lawmakers, administration officials and editorial pundits are giving New Delhi a hard time over what India insists is a relationship based on energy exigencies and tied to the situation in Afghanistan.

Maintaining that it has been "India's long-time friend and an advocate of increasingly close cooperation between Washington and New Delhi," the powerful American Jewish Committee told India's ambassador to the US Nirupama Rao in a letter last week that it was "deeply troubled" by recent reports of India's efforts to intensify trade relations with Iran "at the very moment when the US and fellow democracies are applying new economic pressures to persuade Tehran to halt its nuclear programme".

The letter took particular exception to the announcement made by commerce secretary Rahul Khullar this week that "a huge delegation" of Indian business representatives would soon travel to Iran to capitalize on opportunities created by European withdrawal from the Iranian market.
"This suggests that New Delhi is attempting to take advantage of sanctions adopted by like-minded nations for the explicit purpose of preventing nuclear proliferation by a dangerously aggressive regime - and which could, in turn, trigger an escalating arms race - in a highly volatile region," the letter said. It expressed alarm and dismay at "this apparent move to elevate commercial interests over vital security concerns".

The letter was written before Monday's blast targetting Israeli embassy staff in Delhi, but after a three-day visit to Washington by India's foreign secretary Ranjan Mathai, who during his trip tried to explain India's stand on continued trade with Iran to a skeptical US audience. The Iran question surfaced at almost every meeting Mathai had with US administration officials and lawmakers.

New Delhi's explanation that it is an energy starved country that has to perforce buy supplies from the most logical and economical source did not make much of an impression. Lawmakers pointed to Japan and South Korea as examples that had, in effect, toed the US line while administration mandarins offered to mitigate the situation by suggesting alternate supply possibilities. India's pledge that supplies from Iran were already down to less than 10% also did not impress players in Washington determined to collar Tehran.

For a change though, New Delhi did not employ its usual rhetoric of "civilizational ties" with Iran. Instead, Indian officials tried to explain to the Americans that peeling India off from Iran and isolating Tehran will make things more difficult for India and the US in Afghanistan. But the US is already playing footsie with the Taliban in its effort to extricate itself from Afghanistan making things very difficult for New Delhi.

Much of India's refining capacity is also premised on sourcing oil from Iran and shifting the supply to other sources brings its own logistical problems, one official explained. While serving officials have been circumspect in explaining India's constraints to the US, former diplomats have made no secret of their disdain for the US's conflicting policies in the region.

Indo-Iran trade ties come under pressure - The Times of India

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As Iran becomes more and more isolated internationally, India will have a hard time going ahead with its projects with Iran. Europe & the rest of the world (UN) will tow the US's/Israel's line on Iran, & India might have no choice but to halt its projects with Iran. Unfortunately, it is a lose-lose situation for India in both cases. Regardless of who was actually behind the attack, India cannot stall anymore, & will have to make a definitive choice under extreme pressure from Israel/US.
 
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What can they do if India continues to buy oil from Iran?
 
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iran should drop india fast. india is at the end of united states leash and very soon they won't be shy about echoing US interest wherever the US may be.

US uses india to contain china, they will also use india to contain the iran/middle east.
 
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India is playing it very smart. The Americans and Israelis are pragmatic and will understand India's situation given the geography of the region (access to Central Asia). In the bargain, India scored some huge points with Iran.

America still wants India in its bigger game against China, so it is not going to turn against India any time soon.
 
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Indo-Iran trade ties come under pressure - The Times of India

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As Iran becomes more and more isolated internationally, India will have a hard time going ahead with its projects with Iran. Europe & the rest of the world (UN) will tow the US's/Israel's line on Iran, & India might have no choice but to halt its projects with Iran. Unfortunately, it is a lose-lose situation for India in both cases. Regardless of who was actually behind the attack, India cannot stall anymore, & will have to make a definitive choice under extreme pressure from Israel/US.

Agree with you .. India has large trade relationship with USA and major export market. Israel and USA (now a days) is major partner in defense for us.
Other hand support to Iran is like taking right stand for Iran and its people as well as our need by some extend, but this time looks like Israel and USA had finalized some plan Iran. Even traders back in India are facing difficulties in exporting rice to Iran where price are skyrocket after all this issues .. we used to trade via Dubai but because of Riyal's depreciation firms in Dubai is not accepting it. This kind of small and big difficulties will increase day by day .. even GCC countries are against Iran ..
We can support Iran very long in this situation .. Entire West(Major export market) and GCC (Major energy market) are against Iran ...

Iran has to come to table to talk with all major actors in this drama (which can be major disaster for world in case of war)
Both USA government and Iranian government are cracks .. they have to think sane to stop disaster
 
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iran should drop india fast. india is at the end of united states leash and very soon they won't be shy about echoing US interest wherever the US may be.

US uses india to contain china, they will also use india to contain the iran/middle east.

China has listened to USA orders and buys less oil from IRan now.

What do you say about that?
 
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