After decades of crippling sanctions, Iran is finally free and open for business, even though a few sanctions remain in place, and it’s time for India to start making good use of this opportunity.
The US had imposed several sanctions after America's puppet Shah was overthrown from power by the Islamic Revolution of 1979 and the following hostage crisis. In 2006, Iran's nuclear programme was also imposed sanctions against by the UN.
Now, however, Tehran has convinced the International Atomic Energy Agency (IAEA) that all terms of the deal are being complied with, and the world can be sure that Iran has no nuclear weapons ambition. This has lifted the sanctions and Iran's economy will now open up.
Even though the biggest beneficiary would of course be Iran, India too can gain a lot from this revival.
In the last 15 years, Iran's annual crude exports have come down to half, which is bad for a nation that holds one of the largest oil reserves in the world. The changes have given Iran the chance to flood the oil market with its cheap, high quality crude oil, which would be beneficial for an oil importer like India.
As global oil majors rush to Iran to make use of this, Indian players should also join the race so that they can build refining capacity in Iran. It should not be too difficult also because Iran is Islamic-lite, unlike fundamentalist states (like many Arab monarchies). Its social openness could also mean that it is easier for Indians to work and invest there than, like many other places in the Gulf.
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