Q: Iran nuclear deal opens new opportunities for trade and Business for India. Analyze them and also comment on the new challenges of the deal to West Asia.
A: The sanctions on Iran were lifted by the U.S led P5+1 countries following the deal in which Iran agreed to restrictions on its nuclear policy. This enables Iran to participate in the international business and trade. This opens many opportunities for India such as:
- Opportunity to begin the construction of the strategic Chabahar port in Iran which connects India to Central Asia bypassing Pakistan.
- Increase oil trade with Iran and regularize the payments held up from India due to international sanctions. This supports India’s energy needs and enhances energy security of India.
- Iran-Pakistan-India pipeline can be realized which is of immense benefit not only to India but also to Iran and Pakistan.
The deal also poses several challenges in the West Asian region as the region might become unstable with geopolitical conflicts between Iran and Saudi Arabia as each try to gain supremacy in the region. Israel continues to suspect Iran of trying to acquire nuclear capability despite its compliance with the deal. Iran is also under U.S.’s list of countries sponsoring terrorism and is being monitored. The deal and subsequent lift of the sanctions are a welcome step in establishing relations with Iran and bringing the country out of its economic isolation. This must be followed with adequate confidence building measures by both Iran and P5+1 nations to avoid any conflict in the region and realize its benefits.
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