Wednesday 21 February 2018

Comprehending intricate Indo-Iranian ties on President Hassan Rouhani's visit to India


In yet another test to India’s pragmatic foreign policy of carefully balancing ties, New Delhi hosted President Hassan Rouhani of Iran who was reciprocating Modi’s visit to Iran in 2016. Modi’s ceremonial visit to Tehran in 2016 culminated in inking the trilateral transit agreement between India, Iran, and Afghanistan. Rouhani who was on a three day visit to India on Feb 15th landed in Hyderabad. Invoking the centuries old “civilizational ties’’, became the first foreign leader to address the Jummah congregation at the 400-year-old Mecca Masjid built by the Qutub Shahi rulers. Rouhani chose the Mecca Masjid over the Jummah Masjid since it is the only mosque where Shias and Sunnis offer prayers together. Moreover, Hyderabad has sizeable Shia population. At a time, when sectarian conflict on the Middle East is undergoing a major churn, Rouhani wanted to seek the support of Indian Muslims, who constitute the second largest Muslim population in the World. After the Friday prayers, carrying message of unity Rouhani expounded the need for overcoming sectarian violence. He remarked “If part of the Muslim society in the Islamic World is suffering from a problem, it is because Islam’s teachings and advice are not acted upon and that real Islam is not dominant”. He lashed out at America and urged Muslims to come together against Israeli regime and other enemies. Rouhani’s trip has come at a precarious time, when conflict between Israel and the Shia-militants backed by Iran has escalated. Days ahead of Rouhani’s visit, Israel shot down an Iranian drone that entered its airspace from Syrian border. In retaliation, Iranian forces operating from Syria downed Israeli F-16 aircraft worsening the tensions in the Middle East. This latest abrasion between the archrivals Iran and Israel post Trump’s decision of declaring Jerusalem as capital of Israel has intensified into bitter rivalry.

Iran’s Bouncy Trajectory

Interestingly, Rouhani’s state visit to India comes a month after India extended rousing reception to Israeli Prime Minister Benjamin Netanyahu, who pledged to add new momentum to Indo-Israel partnership. Of late, Iran is treading along a bouncy trajectory and going through amorphous times. Iran’s relations with US have moved South after Trump took over as the President. He not only imposed a temporary travel ban on Iranians to immigrate to US, but hardened his stance towards Iran, calling it a sponsor of terror and “rogue regime”. He called for revocation of the Joint Comprehensive Plan of Action (JCPOA) negotiated by P 5+1 on Iran’s nuclear program and refused to certify Iran Nuclear Review Agreement Review Act (Inara)- complies with the historic nuclear deal.  While IAEA (International Atomic Energy Agency) authorized Iran’s compliance, Trump prevailed that Iran should terminate its ballistic missile program and Uranium enrichment program immediately and in absence of the above he refused to waive the sanctions of the deal which concludes in 2030. Though he stopped short of pulling out from the JCPOA, he imposed unilateral sanctions against Islamic Revolutionary Guards Cops (IRGC). Trump’s decertification threats widened chasm between both US and Iran.

Economic sanctions from 2007 to 2016 has crippled Iranian economy, widened income disparities and middle class was hardly hit. High-inflation, unemployment and massive corruption triggered protests across the country. Huge domestic uproar resulted in large scale protests in Iran during the first week of January when the Rial has plunged to a new low of 48,000 per a dollar. Soon there were protests against Iranian conservatism by women who challenged the mandatory law of wearing hijab or veil in public. Ever since the Iranian revolution in 1979, the country was taken over the hardline Islamists now headed by Ali Khamenei (after the death of father of Iranian revolution Ayatollah Ruhollah Khamenei) the supreme commander-in-chief. He appoints the six of 12 members of the Council of Guardians, that oversees the functioning of Parliament and determines which candidates can run for the public office of the Presidency. While the President is democratically elected, he is a nominal head. In the face of rising protests for social liberation, Rouhani who is considered a moderate face promised to hold referendum on legitimacy of present political order. Rouhani is now delicately balancing the domestic unrest that is opposing conservatism, protesting economic downturn, and trying to avert the prospect of another round of economic sanctions. Against these lows, Iran expanded its regional influence through the Syrian civil war gains, propped up the Hezbollah (in Lebanon) and is believed to be aiding the Houthi rebels in Yemen. Iran’s new expansionism and regional presence has become inimical to Sunni-giant Saudi Arabia. This intense hegemonic rivalry is igniting a fresh conundrum in the West Asia has turned it into seat of intense diplomatic and geopolitical activity.  

Indo-Iran relations

Against its burgeoning regional influence, Iran starring at the prospect of international isolation is keen on renewing its partnership with India. Indo-Iranian friendship began in 1950 with countries signing the friendship treaty that called for perpetual peace and friendship. But with time both countries moved to opposite axis of cold war era. Iran under the leadership of Muhammed Reja Shah allied with US, and together with Pakistan, Iraq, UK, Turkey became part of CENTO (Central Treaty Organization), while India gravitated towards Soviet Union. Notwithstanding the friendship treaty, during 1965 and 71 wars, Iran helped Pakistan. In the meanwhile, Iran’s ties with the US soared, hardline Islamists seized control of Iranian political regime, steered it away from democracy and ushered the nation into the Iranian revolution in 1979. India feared the radical Islamist ideology might catch up with Indian Muslims and lend support to self-determination of Kashmir.  At the same time, Iran was upset with India for failing to condemn Soviet Union’s invasion of Afghanistan in public. Despite the differences, India always tried to maintain good relations with Iran due to its energy dependency. Also, India and Iran always undermined unipolarity. While both had different relations with the US, they didn’t approve of US’s role in Middle East. Till 1977, Prime Ministers Jawaharlal Nehru, Indira Gandhi and Morarji Desai travelled to Iran. Roiled in incessant wars with Iraq, Iran hardly engaged with India.

Post Iranian revolution, P V Narasimha Rao’s first visit to Tehran in 1993 and subsequent Iranian President Ali Akbar Hashemi Rafsanjani’s reciprocal visit to Delhi in 1995 gave bilateral ties a fresh lease for life. In March 1994, Iran blocked a consensus against India on Kashmir at United Nations as mark of solidarity. India and Iran maintained closest strategic convergence through the Northern Alliance against the Taliban in Afghanistan from 1996 to 2001. In 2001 Prime Minister Atal Bihari Vajpayee’s signed Tehran Declaration with President Khatami that addressed energy concerns, finalization of agreement with Iran for LNG, development of gas pipeline, scientific and technical cooperation, and commitment to develop north-south corridor. India always felt Iran is critically important in providing access and with Central Asia. On the contrary, having suffered isolation with the election of hardliner Ahmadinejad, Iran always sought relations with India which had varied relations with different countries. India and Iran stepped up engagement, enjoyed good maritime relations which included joint military exercises, high-level military visits, cooperation in naval technology and infrastructure.

In recognition of Iran’s valued relationship, India invited President Khatami as guest of honor for the Republic Day Parade in 2003 and both sides signed the New Delhi Declaration deepening the engagement to include military cooperation, expansion of non-hydrocarbon trade and development of Chabahar (Chabahar-Fahranj-Bahm rail link). Around the same period, India tried to revive its ties with US and was negotiating a Civil Nuclear Agreement. Bowing to US concerns of Iran’s nuclear program, India voted against Iran at IAEA in 2005 and 2006-initially for imposition of sanctions against Iran for non-compliance and even complied that Iran’s case be referred to UNSC straining the bilateral ties. India later defended its actions saying it lobbied with the West to help Iran in in providing diplomatic solutions. As a testimony to its continued friendship during the sanctions regime, Indian foreign minister Pranab Mukherjee paid visit to Iran in 2007. In fact, India continued to import oil from Iran and maintain trade ties when Iran was globally isolated.

Challenging Indo-Iranian Ties

Indo-Iranian ties have always been transactional and besides energy, connectivity has been mainstay of bilateral ties. To circumvent Pakistan’s blockade, India keenly pursued Chabahar development project to foster trade ties with Afghanistan and Central Asian countries. To this end, India, Iran, and Russia signed the North-South Transport Corridor (INSTC), a multi-modal network in 2000 to reduce the cost and time taken for shipment from Mumbai to St Petersburg through Iran’s Chabahar port. But the project missed several deadlines and even after 17 years of the initiation, the project isn’t close to completion. After the trilateral transit agreement, India expedited Chabahar port development and invested $85 million towards the first phase of Shahid Beheshti Port which was inaugurated by Rouhani in December last year. India has indeed, made its first wheat shipment to Afghanistan signaling the importance of this port and pushing for the operationalization of INSTC.  Despite India’s fervent interest, Iran announced that is open to a deal with China and Pakistan on Chabahar development. Iran has always been a finicky nation to deal with. Aside difficulties in economic negotiation, it poses political challenges. Ali Khamenei rallied Muslim community to support Kashmiri brothers when India reached out to Saudi Arabia and Israel. Besides, Chabahar, issue of awarding of contracts for development of Farzad B gas field in Persian Gulf discovered by Oil and Natural Gas Corporation in 2002 is mired in squabbling. India initially hesitated to invest due to the sanction regime on Iran. No sooner, sanctions wwere removed India renewed negotiations, but Iran changed goal posts, invited six other investors and delayed the deal. Despite the proclaimed historical links, engagement with Iran is replete of several challenges.

Bilateral Engagement

Stepping up engagement, India and Iran signed nine agreements which included avoidance of double taxation, exemption of visa for diplomatic passport holders, extradition treaty, cooperation in traditional medicine systems, establishment of expert committee on trade remedial measures, agriculture, medicine and health and postal cooperation. Iran has agreed to lease operational control of a part of Chabahar port for 18 months to India. India committed $500 million towards multi-modal network of Chabahar port. But the project development is tardy due to Western Banks reluctance to support Iranian projects. Interestingly, despite Trump’s hostility towards Iranian administration, US didn’t object to India using Chabahar in the interest of stabilizing Afghanistan. To this end, Tillerson clarified that US “wouldn’t interfere in the legitimate business interests” of its allies and friends. Aside connectivity, India is keen on Chabahar because of its strategic location and proximity to Gwadar port of Pakistan leased by China.  Iran has promised to fast-track the pace of negotiations of Farzad B gas field. Another key aspect of Rouhani’s agenda other than connectivity, energy cooperation was seeking Indian investments. To promote Indian investments in Iran, New Delhi has allowed Indian businesses to invest in Indian rupees. So far, permission to invest in Indian rupees is made to Nepal and Bhutan. India made this major departure for Iran, since it is barred from dealing in dollars and euros due to nuclear sanctions. Both countries have pledged to step up cooperation to counter extremism, terrorism, and drug trafficking in Afghanistan to restore stability. While Iran is also troubled by restive Afghanistan, its stance towards Kabul has been significantly different from India. India welcomes US role, while Iran is keen on working with China and Russia. 

In his special address delivered at ORF (Observers Research Foundation), New Delhi, Rouhani supported India’s bid to UNSC but raised doubts on UN’s influence and relevance. He criticized US interference in Syria and reiterated Iran’s commitment to abide by 2015 nuclear deal. Having elevated Indo-Israeli relations to a new level of strategic partnership, Rouhani’s visit is seen as a balancing act by India. Underlining India’s “strategic autonomy”, New Delhi maintained historical engagement with Iran despite being closely allied with the US and Israel. In a bid to bolster India’s strategic security, economic ties and energy interests Modi reached out to Sunni major Saudi Arabia and its allies and Shiite Iran with equal poise and pragmatism, adding yet another dimension to Modi Doctrine which supremely believes in championing India’s strategic interests. But clearly dealing with a theocratic Islamic Republic of Iran is an onerous task as the hardcore Iranian clerics calls all the shots and Rouhani is not in command of Iran’s politics. Regardless of the effusive handshakes, India should be prepared for unexpected twists and turns.


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