As the global landscape shifts, Iran and India are increasingly focused on strengthening their partnership and discovering new opportunities for collaboration. In a recent discussion between Davoud Rezaei Eskandari, the Acting Consul General of Iran to Mumbai, and Satya Swaroop, the Managing Director of Open Trade magazine. The conversation delves into how Iran’s rich cultural heritage and emerging tourism sector could act as a catalyst for strengthened economic and cultural ties, paving the way for more robust bilateral exchanges between the two nations. It also explores the multifaceted relationship between Iran and India, focusing on key areas such as trade, art, culture, and tourism.
As the global landscape shifts, Iran and India are increasingly focused on strengthening their partnership and discovering new opportunities for collaboration. In a recent discussion between Davoud Rezaei Eskandari, the Acting Consul General of Iran to Mumbai, and Satya Swaroop, the Managing Director of Open Trade magazine, we gain valuable insights into how Iran’s rich cultural heritage and emerging tourism sector could drive deeper economic and cultural ties between the two countries. This conversation explores the vibrant and personal aspects of the Iran-India relationship, touching on how trade, art, culture, and tourism can strengthen our connections and foster mutual growth. It is a look into how these rich and diverse elements bring the countries closer together and open new doors for collaboration.
What are the economic and strategic implications of the Chabahar
Agreement?
The Chabahar Agreement, signed after eight years of discussions between Iran and India, is a ten-year deal of great economic and strategic importance for both sides. For India, it marks the first management of a foreign port, enhancing its connectivity to Afghanistan, Central Asia, the Caucasus, Russia and Europe via the International North–South Transport Corridor (INSTC). This route is significantly shorter and cheaper than the traditional route through the Suez Canal, reducing the distance from Mumbai to St. Petersburg by 30%. For Iran, Chabahar, as the only deep-sea port, is crucial for the development of the southeastern region and is part of a broader strategic plan. Surely, this agreement will strengthens not only India-Iran relations, but also will positively affect India’s global outreach.
How does Iran’s geographical position enhance its connectivity and economic significance for India and other regions?
Iran’s strategic location serves as a vital link for landlocked countries like Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan, and Tajikistan. Iran’s extensive railroads connect to Turkey, Central Asia, and Pakistan, facilitating efficient cargo transport. Additionally, travelers can now journey through Iran via regular railroad systems that connect to Turkey. Moreover, a direct shipping line from West India to Chabahar in Iran takes 3-4 days, offering a shorter, safer, and more cost-effective route for businesses. This enhanced connectivity benefits India and reinforces Iran’s role as a regional hub.
Have bottlenecks affecting the Chabahar project been
resolved, and will this
strengthen Iran-India relations?
Yes, recent challenges have been successfully addressed. The shipping line is now operational. India has committed $120 million to expand the capacity of the Chabahar port and offered a $250 million credit line to support regional development projects. These strategic initiatives are poised to bolster Indian trade and strengthen Iran-India bilateral relations. Leveraging Iran’s abundant energy and mineral resources and India’s burgeoning economy, this collaboration holds immense promise. Iran, with a population of 89 million and a half a trillion dollars GDP, presents billions of dollars lucrative investment prospects, including in energy, petrochemical, pharmaceutical, infrastructure, over 50,000 mine, etc.
What sectors will drive future cooperation between Iran and India?
Key sectors include oil and gas, where Iran had been a major supplier to India for many years, with many Indian refineries well optimized for Iranian oil. Additionally, the petrochemical industry, producing over 100 million tons annually, offers growth opportunities. Iran’s car manufacturing sector, producing over 1.3 million cars per year, also presents potential for collaboration. Pharmaceutical and agricultural sector are another scopes that deserve attention by Indian businessmen.
Are you focusing on electric vehicles (EVs) and what other sectors present opportunities for cooperation with India?
Yes, “Iran has recently entered the electric vehicle production sector through collaboration with Chinese companies. Despite the presence of established domestic car manufacturers like Iran Khodro and Saipa, there is a demand exceeding production capabilities, presenting opportunities for Indian companies as well. Additionally, the pharmaceutical sector offers potential for joint ventures, given that Iran produces 95% of its drugs domestically but still imports Active Pharmaceutical Ingredients (APIs), including from India. Iran could serve as a hub for both automotive and pharmaceutical industries, benefiting from its robust regional market access.
Beyond that, key sectors include oil and gas, petrochemicals, machinery, and agriculture. The existing trade includes Indian rice, tea, sugar, bananas, and mangoes, alongside Iranian apples, kiwis, and other fruits. Notably, there is significant untapped potential for collaboration in energy, as Iran’s abundant oil, gas, and chemicals will supply India’s growing demand for continuing its development.
Can you elaborate on Iran’s rich history and tourism
potential? What are some key
attractions?
Iran has been a key civilization alongside India, China, Egypt, Greece, and Roman Empire. The cultural and historical ties between India and Iran span millennia. Iran boasts an impressive collection of 29 UNESCO World Heritage sites, stunning landscapes, and diverse climates, ranging from arid deserts to scenic ski resorts. Among its notable cities include Shiraz, home to the ancient Persepolis with a history dating back over 2,000 years, and Isfahan, renowned for its 16th-century architectural marvels, Yazd with its magnificent historic architectures remain relatively undiscovered by many Indian travelers. Beyond its architectural and historical treasures, Iran features important religious sites in Mashhad and Qom, attracting Muslim pilgrims from all over the world.
Efforts are underway to introduce this hidden gems to Indian tourists. In February 2024, Iran took a significant step by waiving visas for Indian nationals, further enhancing accessibility for Indian tourists. However, there remains untapped potential in promoting the country’s diverse destinations, necessitating additional efforts.”
How is Iran promoting and empowering women entrepreneurs?
It’s important to note that during the last decades, very good progress has been made to promote the situation of women entrepreneurs in Iran. However, as in every other country, there is still significant room for improvement. Iran’s education system is dynamic, boasting 3.3 million university students and maintaining a nearly equal gender ratio in universities and women constitute nearly 50% of university students. Among around 80,000 university faculty members in Iran, 30% are women, and many others, hold active roles in media and business and in other sector of our society as well. Despite prevailing misconceptions, Iran is diverse and vibrant country, offering substantial opportunities for women across various sectors. For instance, a female professional I used to collaborate with a decade back in Brazil, initially had hesitation to visit Iran due to these preconceived notions. However, after a week-long trip, she was pleasantly surprised by the dynamic and active society, which defied her expectations, and I am sure it would be the case for anybody else who travel to Iran for the first time. Contrary to common portrayals, Iran is a dynamic, multifaceted and multicultural nation.
How did recent events impact the organization of the presidential election, and what measures were taken to ensure its smooth conduct?
Despite the temporary disruption caused by the recent helicopter crash, we efficiently orchestrated the presidential election within a span of less than two months. With over 344 polling stations abroad, with four of them located in India (Delhi, Hyderabad, Mumbai, and Pune). Through these measures, we have ensured a smooth electoral process, engaging both local councilors and Iranian expatriates.
How are sanctions affecting Iran?
Despite the existing sanctions, we have effectively managed our operations. We export over 3 million barrels of oil daily and import essential goods, despite challenges in banking and business with Indian companies. Our bilateral trade with India is nearly $5 billion, and last year’s total trade turnover of Iran surpassed $160 billion. Despite the US withdrew from the agreement, we remain open to negotiations and are ready for a resolution.
Can you share recent cultural events involving Iran?
We have organized several cultural events in India, notably participating at the Mumbai International Film Festival and featuring the Iranian animation film “Dolphin Boy”, which was well-received a positive reception. We also jointly organized an Iran-India Film Festival in Goa with a focus on disability-related themes and also held another film festival in Chennai in April this year. Another festival is planned for Mumbai this September in collaboration with our Indian partners. Additionally, several other events have been meticulously organized to enhance Persian language proficiency among Indians and cultural groups have been facilitated with curated tours to Iran, etc.
How long have you been a
diplomat, and which countries are your favourites?
As a career diplomat with 22 years of experience, I have held postings in both Brazil and Austria. My extensive travels have taken me to over 30 countries, spanning Central Asia, Europe, Australia, New Zealand, and several Middle Eastern nations. Each country possesses distinct qualities, making it challenging to pick favorites, being in India is an absolute pleasure. The cultural and historical similarities, along with the warm and sociable people, create a sense of home. Moreover, the abundant opportunities for collaboration and the immense potential shared by our two nations contribute to a rewarding experience.
What memorable experience has inspired you the most in your diplomatic career?
Embarking on a journey through diverse cultures and gaining a global perspective has been profoundly inspiring. Despite the inevitable challenges, particularly for families, the privilege of perceiving the world as a tightly knit community has been exceptionally rewarding.
Is there anything else you would like to add? India and Iran share a profound historical and cultural bond that serves as a fertile ground for enhanced interactions between our nations. Our common cultural heritage provides a strong foundation for collaboration, including in the academic sphere. Annually, over 60,000 Iranian students venture abroad for higher education, and India can be as a destination for some of them, as it had been some years back. Simultaneously, we extend a warm invitation to Indian students to explore the diverse educational landscape of Iran, which boasts more than 2,800 universities and higher education institutes. Additionally, Iran warmly welcomes Indian tourists to discover its extraordinary attractions, catering to all range of tastes.
