TODAYs ANSWER WRITING CHALLENGE FROM GS-II
Q1. How have the US sanctions against Iran affected India’s bilateral relations with Iran? [10marks/2012/GS-2] 100 words.
Please write answer in the comments section.
1. Iran is under US Sanctions for its controversial nuclear programme. The US sanctions impose restrictions on trade with Iran.
2. The sanctions require other countries, including India, to drastically cut oil imports from Iran. This results into a great hurdle to India in its energy security. Banks cannot have financial transaction with Iran.
3. A few banks which have no exposure to US are exempted from impact of sanctions. India’s UCO Bank is the only bank in India presently to act as a channel for trade with Iran.
4. Even though India and Iran are keen to trade with each other, there hurdles like effective payment mechanism, banking channel, shipping facility and insurance cover for trade and transportation to facilitate bilateral trade.
5. On the issue of nuclear programme, India believes that every country has a right to have access to nuclear technology for peaceful purposes, including Iran but at the same time India believes that development of nuclear weapons by Iran is not in the interest of international peace and security.
6. Thus US sanctions have affected India’s relation with Iran in both commercial and political fields.