India defends Iran, cites its position of no compromise against terrorism

Key Highlights

• The Ministry of External Affairs (MEA) highlighted its uncompromising stance on terrorism while refraining from commenting on Iran's strikes in Kurdish areas of Iraq and Syria on the same day.

1. Bilateral Nature of the Issue

• The MEA emphasized that the matter was bilateral between Iran and Pakistan, and India holds a zero-tolerance position on terrorism.

2. International Response and Tensions in West Asia

• India's support for Iran's actions contrasts with condemnation from the White House National Security Council, criticizing the strikes against Iraq as reckless and imprecise.
• Tensions in West Asia, particularly involving the U.S., Israel's actions in Gaza, U.S. strikes in Yemen, and Houthi rebel attacks, add complexity to the situation.

3. Iran's Perspective

• Iran's Foreign Minister reiterated the strikes were aimed at enhancing the security of Iran, Pakistan, Iraq, and the region.
• He emphasized respecting the sovereignty of Pakistan and Iraq while asserting Iran's commitment to addressing terrorist threats within and outside its borders.

India and Iran bilateral relation

• Over the years, India's trade with Iran has seen significant fluctuations.
• In 2019-20, India’s imports from Iran, primarily crude oil, fell by about 90% to USD 1.4 billion compared to USD 13.53 billion in 2018-19.
• Also, Iran has seen a depletion of its rupee reserves in the vostro account, affecting its ability to import key Indian commodities like basmati rice and tea.
• To revive trade between India and Iran, which has been impacted by US and Western sanctions, both nations are considering the option of rupee-rial trade.

Rupee-Rial trade

• It refers to trade between India and Iran using their respective currencies, the Indian Rupee (INR) and the Iranian Rial (IRR)
  • Instead of using widely accepted international currencies like the US Dollar (USD).

Prelims Takeaway

• Rupee-Rial trade
• Map based question