India–Iran Trade Relations Under the Shadow of USA Sanctions

Published date01 November 2019
Date01 November 2019
Subject MatterCommentary
India–Iran Trade
Relations Under the
Shadow of
USA Sanctions
Suadat Hussain Wani1
Mohd Afzal Mir1
Imtiyaz Ahmad Shah1
India and Iran have a long history of cooperation on various issues ranging from
economic to strategic importance. However, the present phase of cooperation
is as old as end of the cold war and reached a peak during the period 2001–2003
with the Tehran and Delhi declarations, which established a substantial set of
framework for enhanced cooperation. In the present times given the changing
regional and global economic and security conditions, many attempts have been
made by both countries to increase their cooperation. Since Islamic revolution,
Iran faces continuous confrontation and sanctions from the West and the USA.
Iran has continuously tried to improve its relations with its neighbours and other
friendly countries to minimize the impact of these sanctions which are badly
affecting its economy. India, on the other hand, has been growing at a faster
pace from last many years which has increased its energy requirements. Given
Iran’s nuclear programme and its confrontation with the West and India’s energy
requirements, both countries are working together to sustain their economic
and energy cooperation from last many years. In 2015, both countries signed
a memorandum of understanding worth USD 195 million for the development
of Chabahar Port situated in south-eastern Iran and India agreed to make the
investment in infrastructural development of Iran. Through this port, India will
get easy access to Central Asian and Afghanistan which will increase its trade
relations with these countries. The aim of this research article is to examine
the impact of sanctions on Iran due to its nuclear programme on trade relations
between India and Iran by using threshold autoregressive model and using trade
variables including exports and imports.
1 Centre of Central Asian Studies, University of Kashmir, Hazratbal, Jammu & Kashmir, India.
Corresponding author:
Suadat Hussain Wani, Centre of Central Asian Studies, University of Kashmir, Hazratbal, Srinagar,
Jammu & Kashmir 190006, India.
Foreign Trade Review
54(4) 399–407, 2019
© 2019 Indian Institute of
Foreign Trade
Reprints and permissions:
DOI: 10.1177/0015732519874222

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