18/07/2020 - International Relations

KEY POINTS

Connectivity for Afghanistan

·         Providing connectivity for Afghanistan through Iran in order to lessen its dependence on Karachi port has enjoyed support in Delhi, Kabul and Tehran since 2003

·         Another milestone was the signing of the Trilateral Agreement on Establishment of International Transport and Transit Corridor between Afghanistan, Iran and India. In addition to $85 million of capital investment, India also committed to provide a line of credit of $150 million for port container tracks.

Why Iran needs China

·         Reluctant to be tied into too close a Chinese embrace, Iran kept the negotiations going for years. China patiently permitted a limited barter trade; China Petroleum & Chemical Corporation (SINOPEC) prolonged its negotiations on developing the Yadavaran oilfield while China National Petroleum Corporation (CNPC) pulled out of the South Pars gas project last year, after initially promising to take over the French company Total’s stake.

·         UNSC Resolution 2231 was adopted in 2015 by consensus to endorse the JCPOA and contains a five-year restriction on Iran’s importing conventional weapons.

Advantages and a lesson

·         Iran may well be considering a long-term partnership with China, but Iranian negotiators are wary of growing Chinese mercantilist tendencies.

·         It is true that China has greater capacity to resist U.S. sanctions compared to India but Iran realises the advantage of working with its only partner that enjoys a sanctions waiver from U.S. for Chabahar since it provides connectivity for land-locked Afghanistan.

·         Iran and India also share an antipathy to a Taliban takeover in Afghanistan. This is why Iran would like to keep the door open. Nevertheless, India needs to improve its implementation record of infrastructure projects that it has taken up in its neighbourhood.

·         There are numerous tales of Indian cooperation projects in Nepal, Bangladesh, Sri Lanka, Myanmar, etc suffering delays and cost overruns that only make it easier for China to expand its footprint in India’s neighbourhood. The key is to continue to remain politically engaged with Iran so that there is a better appreciation of each other’s sensitivities and compulsions.

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Yes, India must continue to remain politically engaged with Iran despite its partnership plan with China.

As China faces increasing heat from the international community over its aggressive political and military postures, ranging from Ladakh in the high Himalayas with India, the South China Sea region, Hongkong and beyond, Beijing is now looking to solidify its relations with Iran.

>>> In China-Iran partnership, India’s concerns :

- As a part of China’s "debt-trap diplomacy",

China is investing into Iran’s transport and manufacturing infrastructure, thus giving it inroads into major sectors in Iran including banking, telecommunications, ports and railways. 

- With a growing Chinese presence in Iran, India is concerned about its 'strategic stakes'  around the "Chabahar port project" that it has been developing, and for which it committed Rs 100 crore in the last Budget.

- China-backed "Pakistan-Iran-Taliban alignment" emerging in India’s immediate neighbourhood is also a reason for India's concern.

- Next to these, what is more alarming for New Delhi is that Beijing is also concluding a "security and military partnership" with Tehran, which includes weapons development, training between Iranian and Chinese armed forces and intelligence sharing.

>>> Need of the hour :

- There are numerous tales of Indian cooperation projects in Nepal, Bangladesh, Sri Lanka, Myanmar, Iran, etc., suffering delays and cost overruns. 'Farzad-B natural gas project' of Iran is one such example. 

- This only make it easier for China to expand its footprint in India’s neighbourhood. "Chabahar-Zahedan rail link project" of Iran is the present one.

- Thus, India needs to improve its implementation record of infrastructure projects that it has taken up in its neighbourhood. 

>>> Conclusion : 

Growing Chinese footsteps in Iran will have a long-lasting impact on our relationship with not only Iran but also on Afghanistan and Central Asian nations. Thus, "the key is to continue to remain politically engaged with neighbours" so that there is a better appreciation of each other’s sensitivities and compulsions.