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Why reformist Pezeshkian may ease economic cooperation between India and Iran

Why reformist Pezeshkian may ease economic cooperation between India and Iran

Masoud Pezeshkian

In reformist Masoud Pezeshkian, Iran has found a new president over a month after President Ebrahim Raisi's death in a helicopter crash which necessitatedsnap elections. A cardiac surgeon and single dad who is seen as an advocate of greater freedoms for women in post-revolution Iran, Pezeshkian will now confrontthe challenge of navigating through his reformist policy agenda in a deeply conservative polity.

But there is one aspect of Pezeshkian's job in which he is expected to be on the same page as the Supreme Leader and incredibly powerful Guardian Council: bilateral ties with India.

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On the economic front, Iran continues to face the burden of choking USsanctions amid Tehran's tacit insistence on becoming a nuclear power. But in recent years, Tehran has found a credible economic partner in New Delhi. Thetwo countries recently formalised a crucial Chabahar port deal.

India has formalised some of its most significant foreigninvestments, with a deal for the operations of a part ofIran's Chabahar Port, located just 200 km from China-funded Gwadar port in Pakistan, and key to New Delhi's connectivity ambitions with Russia through Central Asia.

Iran is at the center of International North South Transport Corridor (INSTC)

Iran is at the centre ofthe International North-SouthTransport Corridor (INSTC) | WION

External Affairs Minister Dr S Jaishankar visited Iran in January this year with a focus on concluding the Chabahar Port Deal and developments on the North-South Corridor.

Five months after Jaishankar's Tehran visit in which the two sides committed to a "long term cooperation framework" over Chabahar port's development, India and Iran signed a 10-year contract for equipping and operation of general cargo and container terminals of Chabahar port.

The Chabahar Port project is central to India's regional connectivity strategy and serves as a vital gateway for Indian goods into Afghanistan and Russia.The port's strategic location provides an alternative route for landlocked Afghanistan to access international markets, reducing its dependence on Pakistan and giving New Delhia strategic advantage in a Taliban-run Kabul.

Pezeshkian in Tehran: What it means for NewDelhi?

Iran-India

In past, even when the Conservative presidents were in power in Iran, New Delhi managed to utilise its diplomatic capital in the West to secure a waiver of sanctions for economic cooperation with Tehran— especially for Chabahar's development.

But with Pezeshkian's promising outlook forcountry's better ties with the West along with the rest of the world— and India's elevated ties with most Western powers— it will make New Delhi's economic cooperation with Tehran devoid of geopolitical brakes.

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As the world's fifth biggest economy with a per capita income as less as $2400, it's in India's interest to ensure feasible connectivity routes so that Indians back home are able to get cheaper goods.