- The recent pact between Iran and the US, along with the European Union (EU) and other western countries, is hailed as US President Barack Obama’s biggest diplomatic victory.
- Under the deal, Iran has agreed to limit uranium enrichment.
- Iran has acceded to a rigorous inspection of its nuclear facilities in return for lifting the US, EU and UN sanctions.
- As a major net importer of oil, India has already benefited from the US-led nuclear deal with Tehran.
- The Modi government, hopes that a possible oil glut following the re-entry of Iranian oil in global oil market will greatly benefit Indian oil refining firms.
- Considering China’s role in developing and modernising the port of Gwadar in Pakistan, India sees the potential for Iran to serve as a transit route to Afghanistan and Central Asia.
- This has enhanced India’s desire to invest in upgrading the Iranian port of Chabahar.
- The deal will also enhance the relation between India and the US which has been under strain of late as the US has been looking askance at India’s relationship with Iran and especially its oil imports.