INDIAPOSITIVE
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Iran wants India to cut tariffs on its chemicals, dry fruits and carpets, among other things, as part of the proposed trade pact. India, on the other hand, views Iran as a crucial partner in coordinating its strategy on Afghanistan, where New Delhi has all but ended its diplomatic presence in the wake of the Taliban takeover.
Iranian Foreign Minister Hossein Amirabdollahian has told his Indian counterpart Subrahmanyam Jaishankar that Tehran is ready to “promote economic cooperation” with New Delhi in Afghanistan through “joint consular and economic commissions”, during a meeting between the two chief diplomats on the sidelines of the 76th session of the ongoing United Nations General Assembly (UNGA) in New York on Tuesday.
As per the Iranian Foreign Ministry, Amirabdollahian called for the early finalisation of the ‘Preferential Trade Agreement (PTA)’ between New Delhi and Tehran as well as a pact to finalise “energy cooperation” between the two nations.
The two foreign ministers also concurred on the need for having an “inclusive government” in Afghanistan, as both of them rejected foreign interference in the war-ravaged nation.
Since assuming office in August, Iran’s new president, Dr. Seyyed Ebrahim Raisi, has given a renewed push to “increasing” his country’s share in regional trade.
“By considering Iran's membership in the Shanghai Cooperation Organisation (SCO) and trying to make the port of Chabahar more active, we can easily increase Iran's share in regional trade more than double,” Raisi said during a meeting of the Supreme Council of Cultural Revolution on Tuesday.
Iran, which was formally inducted into the SCO last week, also signed a $400 billion strategic investment agreement with China this year.
India, which has funded the development of Chabahar Port, has described the Gulf of Oman project as one of its most “ambitious” to date. For New Delhi, Chabahar offers the opportunity to trade with Afghanistan, the Central Asian states and Russia, bypassing Pakistan.
Chabahar’s utility to the International North South Transport Corridor (INSTC), a proposed network of sea, road and rail routes to trade between India, Iran, central Asia, Russia and Europe, has also been endorsed by other governments.
The focus on increasing economic engagement between Iran and India also featured during a meeting between Raisi and Jaishankar during the latter's Tehran visit in July, when the new Iranian leader said that the “current level of bilateral relations is not favourable”.
The negotiations for a PTA between the two countries kickstarted in 2016 and, so far, five rounds of talks have been held. However, the trade pact negotiations have been adversely affected in the wake of former US president Donald Trump’s unilateral decision to pull his country out of the Joint Comprehensive Plan of Action (JCPOA) in 2018 and impose punitive economic sanctions on Iran.
As far as the energy trade is concerned, Iran was one of India’s top crude oil suppliers in 2017-18, meeting 10 percent of the overall energy needs at the time. However, New Delhi was forced to halt its crude imports from the west Asian nation in 2019 due to fears of economic reprisal from the US.
With President Joe Biden indicating his willingness to rejoin the Iran nuclear deal, New Delhi has sensed an opening. Since Biden's election victory, New Delhi has more than doubled its annual allocation for Chabahar Port to $13.5 million in 2021-22.
Iran also announced on 27 July that trade between Delhi and Tehran had increased by 240 percent in the March-June quarter this year, compared with the same time period last year.
Iranian Foreign Minister Hossein Amirabdollahian has told his Indian counterpart Subrahmanyam Jaishankar that Tehran is ready to “promote economic cooperation” with New Delhi in Afghanistan through “joint consular and economic commissions”, during a meeting between the two chief diplomats on the sidelines of the 76th session of the ongoing United Nations General Assembly (UNGA) in New York on Tuesday.
As per the Iranian Foreign Ministry, Amirabdollahian called for the early finalisation of the ‘Preferential Trade Agreement (PTA)’ between New Delhi and Tehran as well as a pact to finalise “energy cooperation” between the two nations.
The two foreign ministers also concurred on the need for having an “inclusive government” in Afghanistan, as both of them rejected foreign interference in the war-ravaged nation.
Since assuming office in August, Iran’s new president, Dr. Seyyed Ebrahim Raisi, has given a renewed push to “increasing” his country’s share in regional trade.
“By considering Iran's membership in the Shanghai Cooperation Organisation (SCO) and trying to make the port of Chabahar more active, we can easily increase Iran's share in regional trade more than double,” Raisi said during a meeting of the Supreme Council of Cultural Revolution on Tuesday.
Iran, which was formally inducted into the SCO last week, also signed a $400 billion strategic investment agreement with China this year.
India, which has funded the development of Chabahar Port, has described the Gulf of Oman project as one of its most “ambitious” to date. For New Delhi, Chabahar offers the opportunity to trade with Afghanistan, the Central Asian states and Russia, bypassing Pakistan.
Chabahar’s utility to the International North South Transport Corridor (INSTC), a proposed network of sea, road and rail routes to trade between India, Iran, central Asia, Russia and Europe, has also been endorsed by other governments.
The focus on increasing economic engagement between Iran and India also featured during a meeting between Raisi and Jaishankar during the latter's Tehran visit in July, when the new Iranian leader said that the “current level of bilateral relations is not favourable”.
The negotiations for a PTA between the two countries kickstarted in 2016 and, so far, five rounds of talks have been held. However, the trade pact negotiations have been adversely affected in the wake of former US president Donald Trump’s unilateral decision to pull his country out of the Joint Comprehensive Plan of Action (JCPOA) in 2018 and impose punitive economic sanctions on Iran.
As far as the energy trade is concerned, Iran was one of India’s top crude oil suppliers in 2017-18, meeting 10 percent of the overall energy needs at the time. However, New Delhi was forced to halt its crude imports from the west Asian nation in 2019 due to fears of economic reprisal from the US.
With President Joe Biden indicating his willingness to rejoin the Iran nuclear deal, New Delhi has sensed an opening. Since Biden's election victory, New Delhi has more than doubled its annual allocation for Chabahar Port to $13.5 million in 2021-22.
Iran also announced on 27 July that trade between Delhi and Tehran had increased by 240 percent in the March-June quarter this year, compared with the same time period last year.
