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OPINION » LEAD Published: April 10, 2015 01:05 IST | Updated: April 10, 2015 08:14 IST April 10, 2015 Iran deal spells good tidings for India JAYANT PRASAD AP Iranians celebrate a framework agreement on Iran's nuclear programme between their country and six world powers, in a street in Tehran on April 3, 2015. Jayant Prasad At a time when successful, negotiated outcomes to any intractable international dispute have become a rarity, the understanding reached between Iran and the E3+3 (France, Germany and the United Kingdom + China, the Russian Federation and the United States) is a remarkable achievement. A result of political resolve and deft negotiations, the nuclear deal is set to end over threeandahalf decades of unremitting hostility between Iran and the U.S. The announced framework restrains Iran’s nuclear programme; it does not eliminate it. It allows Iran access to nuclear energy for exclusively peaceful purposes and a comprehensive release from all sanctions. The spontaneous street celebrations across Iranian cities testified its people’s support for an agreement that will reconnect Iran with the world. Key parameters

Lead Article_ Iran Deal Spells Good Tidings for India - The Hindu

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Lead Article_ Iran Deal Spells Good Tidings for India - The Hindu

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  • OPINIONLEAD

    Published:April10,201501:05IST|Updated:April10,201508:14ISTApril10,2015

    IrandealspellsgoodtidingsforIndiaJAYANTPRASAD

    APIranianscelebrateaframeworkagreementonIran'snuclearprogrammebetweentheircountryandsixworldpowers,inastreetinTehranonApril3,2015.

    JayantPrasad

    Atatimewhensuccessful,negotiatedoutcomestoanyintractableinternationaldisputehavebecomeararity,theunderstandingreachedbetweenIranandtheE3+3(France,GermanyandtheUnitedKingdom+China,theRussianFederationandtheUnitedStates)isaremarkableachievement.Aresultofpoliticalresolveanddeftnegotiations,thenucleardealissettoendoverthreeandahalfdecadesofunremittinghostilitybetweenIranandtheU.S.

    TheannouncedframeworkrestrainsIransnuclearprogrammeitdoesnoteliminateit.ItallowsIranaccesstonuclearenergyforexclusivelypeacefulpurposesandacomprehensivereleasefromallsanctions.ThespontaneousstreetcelebrationsacrossIraniancitiestestifieditspeoplessupportforanagreementthatwillreconnectIranwiththeworld.

    Keyparameters

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  • ThedetailsoftheagreementcurrentlybeingdraftedwillbespeltoutbytheendofJuneintheJointComprehensivePlanofAction(JCPOA).TheframeworkoutlinesthatlimitswillbeplacedonIransenrichmentcapacity,levelandstockpilesoverthenext10to15years.IranwillmaintainnootherenrichmentfacilityexcepttheoneatNatanz,whereitwilluseonlyits6,104firstgenerationcentrifuges(lessthanathirdoftheirexistingnumber).IransundergroundandfortifiedfacilityatFordow,whichtheU.S.initiallywantedtoscrapandseal,willbeconvertedintoanuclearphysicsandtechnologycentre.

    Iranwasbuildinga40MWheavywaterreactorinArak,fuelledbynaturaluraniumandestimatedtoproduceninekilogrammesofweaponsgradeplutoniumannuallyshouldIranacquirereprocessingtechnologytoseparateplutoniumfromthespentfuel.TheredesignedArakplantwillensureitdoesnotproduceplutonium.Therewillbenoreprocessing,andthespentfuelwillbeexported.

    ByprovidingtheInternationalAtomicEnergyAgency(IAEA)enhancedaccesstoitsnuclearfacilities,includingfulllifecyclecradletocoffinmonitoringofnuclearmaterialsandcomponents,Iranhasestablisheditsbonafidesaboutabjuringfromtheacquisitionofnuclearweaponsintheforeseeablefuture.Inreturn,Iranshallhaveaccesstointernationalcooperationforciviliannuclearenergy,includingthesupplyofpowerandresearchreactors.

    IransgreatestimmediategainwillbethesimultaneousterminationofthesanctionsleviedbythesixIranspecificSecurityCouncilresolutionsassoonasitimplementsitscommitments.AlsoslatedtogoaretheadditionalsanctionsimposedbytheU.S.,theEuropeanUnionandsomeothers,whichhadcrippledIransinternationalmarketaccessandeconomyanddisrupteditsenergy,shipping,transportationandfinancialsectors.IftheCongressdoesnotrevokethesesanctions,U.S.PresidentBarackObamamightusehiswaiverauthoritytofreeIranoftheireffect.

    Changingregionallandscape

    Iranhasgainedstrategicspace,evendominance,initswesternperiphery,overthelastdozenyearsastheunintendedbeneficiaryoftheU.S.interventioninIraq.Withitsabundantnaturalandhumanresourcesfreedfromtheburdensofsanctions,Iranseconomywillbeunfetteredanditspotentialunlocked.Asaconsequence,Iranwillbecomemoreselfassuredinitsinteractionswiththeworld.

    WithmutualenemyimagesslowlyfadingmanyintheU.S.hadregardedIranasthecoreoftheaxisofevilandtheclergyinIranhadbrandedtheU.S.asTheGreatSatanthereconfiguredU.S.IrantieswillinevitablyrestructurethesecurityarchitectureoftheGulfandtheWestAsianregion.TheU.S.willleanonIrantoseekitscooperationincontendingwithahostofchallengesinIranscontiguity,primarilythecombatagainstDaeshinIraqandSyria,thewarinYemen,andthestruggletoestablishpeaceandstabilisationofAfghanistan.

    IransgeostrategiclocationmakesitanintrinsicpartofIndiassecurityandeconomicspace.AstrongerandmoregloballyintegratedIranwillbeanassetforIndia.IndiahadrightlydisregardedtheStatementofPolicyattachedtothe2006HydeActenjoiningIndiatosanctionandcontainIranforitseffortstoacquirenuclearweapons.DespitecriticsofIndiawithintheU.S.establishmentusingthisasalitmustestforIndiaU.S.relations,IndiarejectedsanctionsnotmandatedbytheSecurityCouncil.

    ImplicationsforIndia

    IransharesitsborderswithAfghanistanandPakistan,whichcontainIslamistterroristgroupsthatactagainstbothIndiaandIran.TheseincludetheJundullah,theLashkareTaiba,andtheHaqqaninetwork,inturnassociatedwiththealQaeda,theTaliban,andeventhePakistanArmy.IndiaandIran,therefore,haveaconsonanceofinterestsinsupportingthestabilisationofAfghanistan.ThehistoryoftheirassociationgoesbacktothesupporttheytogetherextendedtoCommanderAhmadShahMassoudwhenhewascombatingtheTaliban.LikeIndia,IranisconstructivelyinvestedinAfghanistanandcanplayamuchmoresignificantrolethereasitgainsstrengthinthepostsanctionsperiod.

    IndiaandIranarepoisedtoinkanintergovernmentalagreementontheChabaharport,whereIndiaisinvesting,inthefirstphase,amodestamountof$85milliontoequiptwoofitsexistingberthsforcontainerandmultipurposecargoshipmentsmeantforAfghanistan.IndiasfootprintinChabaharwillinitiallybelightanditsinvestmentcanbesteppedupasitscargopotentialincreases.

    Fordecades,IndiahasbeenexploringconnectivityoptionsforAfghanistan,CentralAsia,andRussiabytheoverlandroutethroughIran.Duetolackofabetteravailableoption,IndianexportershavebegunusingthededicatedChinesefacilityforexportstoCentralAsiaattheLianyungangportthisisconnectedbywhatChinacallsitsuninterruptedraillinktoAlmaty,alongthealignmentoftheNewEurasianLandBridge,partofitsOneBeltOneRoadinitiative.IransBandarAbbasport,conceivedasthehubfortheInternationalNorthSouthTransportCorridor(INSTC),remains,nevertheless,theshortestandmosteconomicalroutefromIndiatoCentralAsia,RussiaandEurope.

    India,IranandRussiaoriginallysignedtheINSTCConventioninDecember2000,andninemorecountrieshavesincejoinedit.DryrunsconductedlastJulyfromtheNhavaShevaportinMaharashtraontwotraderoutes,onetoAstrakhaninRussia,viaBandarAbbasandAmirabad,andanothertoBakuinAzerbaijan,viaBandarAbbasandAstara,showthatthesecanreduceshipmentcostsby$2,500per15tonsofcargo.IndiamustseizetheopportunitytooperationalisetheINSTCbyworkingwithIranandotherinterestedstakeholders.

    Energysecurity

    Asthecountryholdingtheworldsfourthlargestoilandthesecondlargestnaturalgasreserves,IrancomplementsIndia,currentlytheworldsfourthlargestconsumerandnetimporterofpetroleumproducts.IranslippedfromthesecondtotheseventhlargestsourceofcrudeoilimportstoIndiabetween200809(21.81millionmetrictons)and201213(13.14millionmetrictons).Withindigenousproductionflatatlessthanamillionbarrelsperday(bbl/d),Indiasoildemandisexpectedtomorethandoublefromitspresentlevelsto8.2bbl/dby2040.McKinseypredictsthatby2030,Indiawillhaveaprimaryenergyimportdependenceof51percent,comparedtooneand20percentfortheU.S.andChina.

    AsIndiasmostproximateoilexportingcountry,IransroleinIndiasenergysecurityremainsimportant.Theoversupplyandlowerpricesof

  • oilandgasmakeIndiaequallyvaluabletoIranasanassured,longtermbuyer.Indiacouldtakeafreshlookattheprospectsofagaspipelineorliquefiednaturalgas(LNG)importsfromIran,asalsoinvestingindownstreamprojectsforpetrochemicalsandgasbasedureaplantsinIran.IndianfirmsneedtobemorenimblefootedtodealwithWesterncompetitorsrushingtoIran,asalsowithIranianpartnersadeptatdrivingahardbargain.

    IndiaIrandefencecooperationcouldbegivengreatercontentthroughaJointWorkingGroupondefence.Thiswasneversetup,thoughenvisionedunderaforwardlookingIndiaIrandefencememorandumofunderstanding(MoU)concludedin2001.Besidesongoingtrainingandportcalls,Indiacouldextenditssupportforhydrographyandmoreintensenavalinteractions.TheestablishedtraditionofexchangesbetweentheNationalSecurityCouncilsandAdvisorsofthetwosidescouldproveusefulinthiscontext.

    AcongruenceofregionalinterestsdoesnotbyitselftranslateintoupgradedstrategicrelationsbetweenIndiaandIran.ItwillrequirepatienceandpersistencetraitspossessedbyIraniannegotiatorsinamplemeasure.

    Curiously,thekeychallengetoIndiawillbesimilartothatwhichconfrontstheU.S.andotherglobalandregionalpowershowtonurturearelationshipwitharesurgentIran,withoutadverselyaffectingtieswiththeArabGulfcountriesledbySaudiArabia,andIsrael.Thetrick,saysaseniorIndianofficial,istobalanceonathreeleggedstoolwithdifferentsizedlegs.

    IndiahasimportantequitiesinArabGulfcountries.Collectively,theyarehometoalmostsevenmillionIndians,thelargestsourceofIndiasimports,includingenergysupplies,itssecondlargestexportdestination,andagrowingsourceofremittancesandinvestments.IndiawillhavetodemonstrateitsdiplomaticdexterityinmanagingthisdifficultbalancingactasitrebuildsitsrelationswithIran.

    (JayantPrasad,aformerdiplomat,iscurrentlyaVisitingFellowattheResearchandInformationSystemforDevelopingCountries,NewDelhi,NonResidentFellowattheCenterfortheAdvancedStudyofIndia,UniversityofPennsylvania,andAdvisorattheDelhiPolicyGroup.)

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