An interview with Ambassador Srikumar Menon
World Geostrategic Insights interview with Ambassador Srikumar Menon on the factors driving India’s growing presence, and influence, in West Asia, the importance of Iran in India’s foreign policy, and whether the US. President Trump’s decision to lift India’s sanctions waiver for the port of Chabahar could hamper the Indian interests in the region.
Ambassador Srikumar Menon is a retired career diplomat and former ambassador with extensive experience in government administration, diplomacy, trade and economic relations. He served as India’s ambassador to South Sudan, Angola, and Sao Tome and Principe. He has also held key positions in various Indian missions, and has represented India at the OPCW and worked at MEA headquarters. He currently supports charitable organizations and provides advice to Indian companies.
Q1. Why is West Asia so important to India? What are the factors driving India’s growing presence, and influence, in the region? What convergences of interests are there between India and West Asian countries?
A1 – The West Asia region holds special strategic and economic significance for India, given its geo-strategic location. For long, it has been part of a volatile, uncertain and complex global security situation, being witness to flashpoints and conflicts in the Red Sea region involving rebel activity in Yemen, the Palestinians and Israel in Gaza, as well as other players like Iran, Lebanon, Syria etc.
Mutual economic and energy security interests have been part of the common thread in India’s engagement with its West Asian partners. The most important component being – cooperation in the energy sector – especially with Saudi Arabia, Iraq, Iran, UAE and Qatar – proving to be steadfast and reliable sources and suppliers for India’s crude oil and gas requirements. More than 50 percent of global oil reserves and 40 percent of global natural gas reserves are in the West Asian region.
India is wary of the debilitating implications on its oil-import dependent economy, in the event of any disruption to its supply of strategic energy resources. Hence its focus on ensuring energy security through its engagement with West Asia.
India has strategic partnerships with several countries in the region, which go a long way in securing its political and security interests. India has honed its West Asia policy by prioritising India’s national interest without getting directly involved in the regional politics of the Arab world.
In fact, India has balanced this need by adopting a pragmatic approach – forging strong bilateral economic ties with its diverse partners in the region, Some of these important tie-ups include:
-India-UAE Comprehensive Economic Partnership Agreement (CEPA),
-Saudi Arabia’s investment in Jio Reliance Industries,
– Strong India-Israel defence ties, and
– Oman facilitating access to Indian Naval ships to the strategic Port of Duqm in Oman for military use and logistical support.
Added to this is the Trade and Investment aspect of bilateral relationships – highlighted by the large volume of trade in goods and services (touching annual turnover of $110 billion) – primarily driven by a large, vibrant Indian consumer market and the ever increasing numbers of Indian Corporates and MSMEs opting to invest in West Asian markets, in diverse sectors like manufacturing, telecom, infrastructure, roads, railways and ports.
Since 2018, India has been part of the Ashgabat Agreement which aims to facilitate trade, transit and transportation of goods between Central Asia and the Persian Gulf.
With rapid industrialization globally, there is great scope for India to boost its relationship with its West Asian partners by expanding cooperation in alternative sectors like renewable energy, solar and wind power, technology and innovation and agricultural research.
India’s regional and strategic cooperation with its West Asian partners have a particular emphasis on maritime security – given the shared proximity vis-a-vis the Red sea, the Persian Gulf, the Arabian Sea and the Indian Ocean in a larger context.
West Asia is home to a substantial population of the Indian Community and members of the Diaspora residing in almost every part of the West Asian region. This includes about 8.7 million Indian workers, mainly Youth, who, by virtue of the remittances they send home, are significant contributors to the domestic economy. Therefore, from the domestic standpoint alone, the stakes are indeed high for the Indian government to ensure their safety, welfare and well-being.
Q2. What is the importance of Iran in India’s foreign policy?
A2 – Economic engagement and Energy Security are important pillars of India’s foreign policy. India’s bilateral relationship with Iran is driven by a combination of energy, strategic, economic, and security interests. Iran has traditionally been an important trade partner and continues to be one of India’s top crude oil suppliers. India and Iran can continue to work together on energy projects by upgrading their existing collaboration in oil and gas exploration, production, and transportation.
The strategic aspect of the relationship is underlined by the countries having maintained a regular momentum of high-level interactions. India has consistently received support and cooperation from Iran in ensuring regional security and stability and in countering terrorism from across the Indo-Pakistan border, not to mention Iran’s crucial support in offsetting Pakistan’s influence in West Asia.
From India’s standpoint, there is immense potential to enhance bilateral trade with Iran from its current annual value of US$ 10 billion by diversifying to other non-oil sectors like agriculture, textiles and pharmaceuticals. To expand this substantive cooperation, both sides have scope to jointly forge partnerships in infrastructure development projects related to construction, roads, railways, ports and in the manufacturing sector.
India also recognises the potential to leverage Iran’s unique geographical position to access markets in Central Asia, Afghanistan and Eurasia.
Both India and Iran have complemented each other in multilateral fora, especially at the UN, BRICS and SCO. In fact, India was a strong advocate of Iran joining the BRICS grouping, The multilateral fora offered wider scope for both countries to cooperate more on regional security issues – such as combating terrorism, extremism, and drug trafficking.
Q3. President Trump’s recent decision to lift India’s sanctions waiver for Chabahar Port poses a significant challenge to India’s ambitions in the region.
-Could such a U.S. decision undermine Indian investment in Iran, threatens the viability of the International North-South Transport Corridor (INSTC), and forces New Delhi to reconsider its trade and connectivity strategies? – How do you think India might respond?
A3 – The strategically important Chabahar Port project is indeed the cornerstone of the Indo-Iranian bilateral economic engagement, mutually beneficial for both countries. It serves as a trade gateway, opening important trade routes to the lucrative markets in land-locked Central Asian States, Afghanistan and Eurasia.
The fact that India has earmarked Rupees 1 billion (US $ 12 million) in its annual budget exclusively for operationalising its 10-year agreement (signed in 2024) with Iran for infrastructure development at the Chabahar port, just about underlines the importance that India accords to this deep-water port project.
The upcoming Port also has added global significance as it provides a wider scope and viability to the International North-South Transport Corridor (INSTC) that links the Indian Ocean and the Persian Gulf to the Caspian Sea through Iran, and further on to northern Europe.
Options available for India:
This latest move by the Trump administration to withdraw the sanctions waiver. of course, puts India in a difficult position – leaving it with limited options to counter the implications.
Albeit a setback, India will do its best to maintain and secure its economic and strategic interests.
The door is always open for India to negotiate with the US on a diplomatic level to seek restoration of the waiver. India would also engage diplomatically with its other international partners like the EU to seek support while underlining the importance and role of this very important trade transportation route in securing regional stability, regional connectivity as well as in ensuring free, unhindered flow of humanitarian aid.
Most importantly – from the perspectives of both India and the US as well as European allies, the Chabahar Port happens to be a crucial counterweight in helping to check China’s growing influence in the region.
To adapt to the changed circumstances, at the domestic level, India will continue to lessen its dependence on Iranian crude oil supplies by diversifying its own economy, though that’s easier said than done.
India will reach out to other alternate oil import sources, while also seeking other trade routes to tap into the Central Asian market. This effectively would mean engaging more with Russia and the Taliban-ruled Afghanistan.
On a bilateral level, with the aim of countering the emerging geo-political challenges, India and Iran have adopted a pragmatic approach by focusing more on mutual strategic interests, regional security issues and economic cooperation.
Ambassador Srikumar Menon, IFS (Retd.) – Former Ambassador of India to South Sudan, Angola and Sao Tome & Principe.
Image Source: Reuters