Context: India must continue to remain politically engaged with Tehran despite its partnership plan with China.
Reasons for Iran moving closer to China:
Proposed strategic partnership programme: It involves Chinese investment in Iranian infrastructure and assured supplies of Iranian oil and gas at concessional rates.
Tensions in the region: have been growing since last year.
U.S. drone strikein January killing of Iranian Gen. Qassim Soleimani.
Mysterious explosions in the last four weeks, including at the ballistic missile liquid fuel production facility at Khojir.
UN Security Council (UNSC) Sanctions: U.S. wants UNSC resolution to continue the banning Iranian acquisition of conventional weapons.
Sanctions provisions under The Joint Comprehensive Plan of Action (JCPOA): The US is still threatening to invoke the automatic snapback of sanctions provisions of JCPOA.
The policy of Maximum Pressure: Iran has found it difficult to cope with the Trump administration’s policy of maximum pressure.
Chinese ability to withstand the U.S.’s sanctions.
India need not worry about the proposed strategic partnership:
Clarification by Iran: Indiacan join the rail link project between Chabahar and Zahedan at a later stage.
Opposition to strategic partnership: The Iran- China strategic partnership road map has run into opposition in the Majlis:
Hard-liners have accused Foreign Minister of undue secrecy surrounding the agreement.
Rumours about China may be taking over Kish island and its troops would be stationed in Iran to secure its interests.
Chinese mercantilist tendencies: Iranian negotiators are wary of growing Chinese mercantilist tendencies.
Sanctions waiver for India: Iran realizes India enjoys a sanctions waiver from the U.S. for Chabahar since it provides connectivity for land-locked Afghanistan.
Convergence in the Afghan peace process: Iran and India also share an antipathy to a Taliban takeover in Afghanistan.
Strong bilateral cooperation with Iran:
Providing connectivity for Afghanistan through Iran has enjoyed support since 2003.
The signing of the Trilateral Agreement on International Transport and Transit Corridor between Afghanistan, Iran, and India.
Planning of a special economic zone (SEZ) at Chabahar.
Way Forward:
Speedy implementation: India needs to improve its implementation record of infrastructure projects in its neighbourhood to prevent the Chinese footprint.
Political engagement: India should continue to remain politically engaged with Iran to appreciate each other’s sensitivities and compulsions.