{"id":52130,"date":"2019-09-12T10:55:02","date_gmt":"2019-09-12T05:25:02","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=52130"},"modified":"2019-09-12T10:55:09","modified_gmt":"2019-09-12T05:25:09","slug":"answered-discuss-the-impact-of-sanctions-on-iran-by-usa-on-indian-trade-and-ties-with-iran","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-discuss-the-impact-of-sanctions-on-iran-by-usa-on-indian-trade-and-ties-with-iran\/","title":{"rendered":"[Answered] Discuss the Impact of sanctions on Iran by USA on Indian trade and ties with Iran."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction. <\/strong>Contextual Introduction.
Body. <\/strong>How did US sanctions impacted India-Iran relations?
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

Recently US had imposed new sanctions on Iran unilaterally. In 2018, U.S. President Donald Trump announced that the U.S. is withdrawing from the Joint Comprehensive Plan of Action (JCPOA) or \u201c Iran deal\u201d.  This has not only impacted Iran but also many countries who are importing oil from Iran including India.<\/p>\n\n\n\n

How did US\nsanctions impacted India-Iran relations?<\/strong><\/p>\n\n\n\n

  1. Bilateral ties took a beating during the\nsanctions years. Till sanctions were imposed on Iran, it was India\u2019s second\nlargest source of crude oil after Saudi Arabia.<\/li>
  2. India had voted against Iran at the\nInternational Atomic Energy Agency over its clandestine nuclear programme and,\nunder pressure from the U.S., slashed oil imports from the country by up to 40%\nduring the period.<\/li>
  3. New Delhi had also backed off from a pipeline\nproject that aimed to bring natural gas from Iran to India through Pakistan.<\/li>
  4. It would Impact development of the Chabahar port\nin Iran which will offer India alternative access to landlocked Afghanistan,\nbypassing Pakistan.<\/li>
  5. Iran\nwas the fourth largest supplier of oil to India in 2018-19. The big concern is\nthat the substitute crude suppliers \u2014 Saudi Arabia, Kuwait, Iraq, Nigeria and\nthe US do not offer the attractive options that Iran does, including 60-day\ncredit, and free insurance and shipping.<\/li>
  6. Higher\ncrude oil prices due to sanctions will widen the trade deficit and current\naccount deficit of India.<\/li>
  7. The\ncurrency could be impacted if the trade and current account deficits were to\nwiden. An increase in the import bill will tend to put pressure on the rupee.<\/li>
  8. There\ncould be significant impact on inflation, given how crude oil prices move and\nthe extent to which the government allows the pass-through to the consumer. <\/li>
  9. After\nthe announcement, Indian benchmark indices slid by around 1.3%, as investors\nrushed to sell shares on concerns that rising oil prices could stoke inflation\nand dent the already weak consumption story.<\/li><\/ol>\n\n\n\n

    According to experts, India will cut imports substantially, but probably maintain some of Iranian imports paid for using a rupee payment system. India should accelerate its strategic oil reserves project that would help it in tackling such issues in future.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Demand of the question Introduction. Contextual Introduction. Body. How did US sanctions impacted India-Iran relations? Conclusion. Way forward. Recently US had imposed new sanctions on Iran unilaterally. In 2018, U.S. President Donald Trump announced that the U.S. is withdrawing from the Joint Comprehensive Plan of Action (JCPOA) or \u201c Iran deal\u201d.  This has not only… Continue reading [Answered] Discuss the Impact of sanctions on Iran by USA on Indian trade and ties with Iran.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-52130","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/52130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=52130"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/52130\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=52130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}