Will India Choose Israeli Technology or Iranian Oil?
by Tanay Paranjape
A bomb went off in an Israeli embassy car in New Delhi on February 14th 2012, critically injuring four people. A similar attack was foiled in Tbilisi in Georgia as the driver found the bomb, before it went off. In both cases sticky bombs attached to the car by a magnet were used. A day later, Iranians were arrested in Bangkok for accidentally setting off explosives that were targeted at Israeli assets in Thailand.
The Israeli government was quick to blame Iran for the attacks in India and Georgia without any headway into the investigations. Prime Minister Benjamin Netanyahu blamed Iran and claimed the Hezbollah carried out the attacks. Iran has denied involvement in either of these attacks. India has been cautious to come to any hasty conclusion about the perpetrators, other than acknowledging it to be terrorist attack. These attacks put India in a precarious position as it enjoys good relations with both Israel and Iran. Trade between India and Israel reached US$ 4.8 billion in the 2010, which is a 60% increase from US$ 2.9 billion in 2009. The trade largely comprises of diamonds, information and communications technology, and Nano technology and defense equipment. Israel is the largest supplier of military equipment to India. Collaborations in space technology and agricultural technology with Israel are vital to India’s growing economy.
On the other hand India imports 12% of its crude oil from Iran, making it the largest importer of crude oil from Iran. Iran sources 40% of its refined oil from India. India is also the largest supplier of rice to Iran. Indo-Iranian trade crossed US$ 12 Billion in 2011. India has been able to balance its friendly relations with both nations, resisting strong American and European pressure to suspend trade with Iran over its disputed nuclear program. The two countries have resorted to a barter system and trade through other Middle Eastern countries due sanctions imposed on Iran. The United States froze Iranian assets in America, which means Iran cannot use American dollar for any trade transaction. It is important to understand the historical context of India’s relations with Israel. India was among the 13 countries that voted against the creation of Israel in the United Nations in 1948. Mahatma Gandhi was strongly opposed to the creation of nations on grounds of religion rooted in his vehement opposition to the creation of Pakistan. Pandit Jawaharlal Nehru, India’s Prime Minister at the time spoke with anger and contempt for the proposed partition of Palestine in the United Nations. India did recognize Israel in 1950 but established formal diplomatic relations only in 1992. Eighty five thousand Jews of Indian origin live in Israel. Despite establishing relations with Israel, India continues to maintain a pro-Arab policy. Some attribute the pro-Arab policy to the appeasement of the Muslims, which constitute 14% of its population (approximately 170 million). Although, Israel has voted in favor of India on the issue of Kashmir (between India and Pakistan),
Iran and India have enjoyed relations that can be traced back to the Bronze Age and Harrapan civilization in 3000 BC. Iranian Muslims, Jews and Parsis have immigrated to India over many centuries. Thus Iran has a strong cultural influence on Indian cuisine, language, dress and culture. It is important to note that Iranian Muslims are overwhelmingly Shiites where as majority of the Indian Muslims are Sunnis. India provides financial assistance to build a highway between Zarang and Delaram in Iran and a port in Chabahar. Despite the longstanding ties, Iran has voted against India on issues related to Kashmir.
Iran’s strategic importance to India is not only limited to its supply of oil. The Northern Alliance, which was an Afghan group created to fight the Taliban (Pakistan backed) was supported by the United States, India and Iran. The present Karzai government also enjoys good relations with Tehran. In the beginning, while Shia Iran has no natural sympathy with the hardline Sunni Taliban, there have been some reports of Iranian support for the Taliban. However U.S. Defense Secretary Robert Gates described Iranian support for the Taliban as “pretty limited.”
At the same time, Iran is keen for stability in Afghanistan in part to help clamp down on a booming heroin trade which has left it with its own huge drug addiction problem. In 2009, it offered help in combating the Afghan drugs trade at a conference in The Hague attended by U.S. Secretary of State Hillary Clinton. Iran’s Supreme leader Ali Khamnei said “In addition to hosting a large domestic consumption market for narcotics, Iran is the shortest drug traffi cking route from Afghanistan to the world. Opium based products such as morphine and heroin are usually transported to European countries and other products such as hashish are trafficked to other countries such as the Persian Gulf countries. Given all of this, naturally Iran is the country suffering here”. In this respect Iran and the U.S. actually share the same long-term goal in Afghanistan, which is creation of a stable government. The U.S. needs a stable Afghanistan so terrorist groups do not again form operating bases the country.
Iran provides land and sea access to Afghanistan for India. India has, since 2001, given Afghanistan aid up to the tune of U.S. $2 billion, helping the reconstruction of the country by building schools, hospitals, roads and airports. India hopes to extend its sphere of influences to Afghanistan once U.S. troops leave. Pakistan is competing to extend its sphere of influence over Afghanistan through covert support to the Afghan Taliban. Thus America’s interests are aligned with India and Iran.
India should try to impress upon the United States, Iran’s importance in maintaining a stable and pro American government in Afghanistan. This requires tactful diplomacy in the pursuit of a common goal. The United States will not be able to openly support Iran owing to its geopolitical and domestic constraints. However this will ensure that India suffices her growing need for technology and oil.
by Tanay Paranjape
A bomb went off in an Israeli embassy car in New Delhi on February 14th 2012, critically injuring four people. A similar attack was foiled in Tbilisi in Georgia as the driver found the bomb, before it went off. In both cases sticky bombs attached to the car by a magnet were used. A day later, Iranians were arrested in Bangkok for accidentally setting off explosives that were targeted at Israeli assets in Thailand.
The Israeli government was quick to blame Iran for the attacks in India and Georgia without any headway into the investigations. Prime Minister Benjamin Netanyahu blamed Iran and claimed the Hezbollah carried out the attacks. Iran has denied involvement in either of these attacks. India has been cautious to come to any hasty conclusion about the perpetrators, other than acknowledging it to be terrorist attack. These attacks put India in a precarious position as it enjoys good relations with both Israel and Iran. Trade between India and Israel reached US$ 4.8 billion in the 2010, which is a 60% increase from US$ 2.9 billion in 2009. The trade largely comprises of diamonds, information and communications technology, and Nano technology and defense equipment. Israel is the largest supplier of military equipment to India. Collaborations in space technology and agricultural technology with Israel are vital to India’s growing economy.
On the other hand India imports 12% of its crude oil from Iran, making it the largest importer of crude oil from Iran. Iran sources 40% of its refined oil from India. India is also the largest supplier of rice to Iran. Indo-Iranian trade crossed US$ 12 Billion in 2011. India has been able to balance its friendly relations with both nations, resisting strong American and European pressure to suspend trade with Iran over its disputed nuclear program. The two countries have resorted to a barter system and trade through other Middle Eastern countries due sanctions imposed on Iran. The United States froze Iranian assets in America, which means Iran cannot use American dollar for any trade transaction. It is important to understand the historical context of India’s relations with Israel. India was among the 13 countries that voted against the creation of Israel in the United Nations in 1948. Mahatma Gandhi was strongly opposed to the creation of nations on grounds of religion rooted in his vehement opposition to the creation of Pakistan. Pandit Jawaharlal Nehru, India’s Prime Minister at the time spoke with anger and contempt for the proposed partition of Palestine in the United Nations. India did recognize Israel in 1950 but established formal diplomatic relations only in 1992. Eighty five thousand Jews of Indian origin live in Israel. Despite establishing relations with Israel, India continues to maintain a pro-Arab policy. Some attribute the pro-Arab policy to the appeasement of the Muslims, which constitute 14% of its population (approximately 170 million). Although, Israel has voted in favor of India on the issue of Kashmir (between India and Pakistan),
Iran and India have enjoyed relations that can be traced back to the Bronze Age and Harrapan civilization in 3000 BC. Iranian Muslims, Jews and Parsis have immigrated to India over many centuries. Thus Iran has a strong cultural influence on Indian cuisine, language, dress and culture. It is important to note that Iranian Muslims are overwhelmingly Shiites where as majority of the Indian Muslims are Sunnis. India provides financial assistance to build a highway between Zarang and Delaram in Iran and a port in Chabahar. Despite the longstanding ties, Iran has voted against India on issues related to Kashmir.
Iran’s strategic importance to India is not only limited to its supply of oil. The Northern Alliance, which was an Afghan group created to fight the Taliban (Pakistan backed) was supported by the United States, India and Iran. The present Karzai government also enjoys good relations with Tehran. In the beginning, while Shia Iran has no natural sympathy with the hardline Sunni Taliban, there have been some reports of Iranian support for the Taliban. However U.S. Defense Secretary Robert Gates described Iranian support for the Taliban as “pretty limited.”
At the same time, Iran is keen for stability in Afghanistan in part to help clamp down on a booming heroin trade which has left it with its own huge drug addiction problem. In 2009, it offered help in combating the Afghan drugs trade at a conference in The Hague attended by U.S. Secretary of State Hillary Clinton. Iran’s Supreme leader Ali Khamnei said “In addition to hosting a large domestic consumption market for narcotics, Iran is the shortest drug traffi cking route from Afghanistan to the world. Opium based products such as morphine and heroin are usually transported to European countries and other products such as hashish are trafficked to other countries such as the Persian Gulf countries. Given all of this, naturally Iran is the country suffering here”. In this respect Iran and the U.S. actually share the same long-term goal in Afghanistan, which is creation of a stable government. The U.S. needs a stable Afghanistan so terrorist groups do not again form operating bases the country.
Iran provides land and sea access to Afghanistan for India. India has, since 2001, given Afghanistan aid up to the tune of U.S. $2 billion, helping the reconstruction of the country by building schools, hospitals, roads and airports. India hopes to extend its sphere of influences to Afghanistan once U.S. troops leave. Pakistan is competing to extend its sphere of influence over Afghanistan through covert support to the Afghan Taliban. Thus America’s interests are aligned with India and Iran.
India should try to impress upon the United States, Iran’s importance in maintaining a stable and pro American government in Afghanistan. This requires tactful diplomacy in the pursuit of a common goal. The United States will not be able to openly support Iran owing to its geopolitical and domestic constraints. However this will ensure that India suffices her growing need for technology and oil.
