Iran-India ties at a new turning point

EghtesadOnline: Iranian Foreign Minister Mohamamd-Javad Zarif, heading a high-ranking political, economic, trade and banking delegation, is to visit New Delhi on Saturday (Dec 3) on the first leg of his Asian tour.

News ID: ۷۳۸۳۸۲

04 December 2016

While in India, which is considered as his third visit to this Asian country, Zarif is scheduled to attend and deliver a speech in the Ministerial Conference on Afghanistan called 'Heart of Asia'.
In the conference, Zarif would discuss with several high-ranking Indian officials the ways for fostering mutual cooperation, IRNA reported.

Managers of 45 companies from various industrial sectors including mining, trade and agriculture, 15 knowledge-based companies, eight banks, along with industrial, scientific and business officials are accompanying Zarif during his Asian tour, which would take him to India, China and Japan.

** The history of Iran-India relations:
Tehran and New Delhi have always enjoyed an age-old relations.

Although the relations between Tehran and New Delhi declined after anti-Iran sanctions, India has been considered as the second importer of oil from the Islamic Republic amid the western pressures.

Thanks to its economic growth of above seven percent, a population of one billion and 250 million people as well as its lack of reliable sources of energy, India is considered as a lucrative market for Iran and Tehran is keen on improving ties with New Delhi.

Due to its geographical proximity, Iran as the fourth largest owner of gas reserves in the world has always played a pivotal role in addressing the country's energy demands.

Following removal of anti-Tehran sanctions, Iran's volume of oil exports to India has skyrocketed by 800 thousand barrels per day (bpd) during the past several months.

According to India official report, trade volume between Iran and India has reached over $13.13 billion during the 2014-2015 fiscal years.
Meanwhile, Iran and India trade transactions hit $8.299 billion during the mentioned period.

**Chabahar cooperation agreement:

On May 2016, Indian Prime Minister Narendra Modi arrived in Tehran and at the head of a large delegation to boost economic and political ties with Tehran.

During Modi's stay, Iran and India singed several cooperation agreements, including an agreement to develop the southern port of Chabahar that lies in the Gulf of Oman.

The Chabahar route will allow Indian goods to reach Afghanistan via the Iranian port of Chabahar without crossing Pakistan’s territory.

**Farzad B gas field.
Following the implementation of the comprehensive nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), between Iran and the world powers, an Indian delegation traveled to Iran to discuss the ways for making investment in Farzad B gas field.

A consortium led by New Delhi-based ONGC Videsh discovered Farzad B in the Farsi offshore block, but it abandoned its expansion after the West intensified sanctions on the Islamic Republic in 2012.

The Farzad-B gas field has in-place reserves of up to 21.68 trillion cubic feet (Tcf), 12.8 Tcf of which may be recoverable.