Q3.

While India and the US have embarked on a campaign to strengthen their bilateral relations as symbolized by the proposed US-India civilian nuclear deal it appears as though India has similarly begun to pursue a more robust, relationship with another major power Iran. The two Countries have recently expanded co-operation in a no. of key areas, including counterterrorism, regional stability and energy security. What are the implications of this New Delhi-Tehran Axis for the US and how should US respond to growing ties between India and Iran?

ASNWER
India has formal diplomatic relations with most countries, as the world's second most populous country and the world's most-populous democratic economy and recently has one of the fastest economic growth and development rates in the world. With the world's tenth largest military expenditures, and eleventh largest economy by nominal rates or fourth largest by purchasing power parity, India is a regional power, and a potential power. India has a long history of collaboration with several countries and is considered a leader of the developing world. India was one of the founding members of several international organizations, most notably the United Nations, the Non-Aligned Movement, the Asian Development Bank and the G20 industrial nations and many others. India's foreign policy has always regarded the concept of neighborhood as one of widening concentric circles, around a central axis of historical and cultural commonalities. It is India's growing international influence that increasingly gives it a more prominent voice in global affairs. Countries like US, China, Iran, and Russia are forming strong bonds with Indian economy by signing deals and agreements.

US-INDIA CIVILIAN NUCLEAR DEAL

The 123 Agreement signed between the United States of America and the Republic of India is known as the U.S.-India Civil Nuclear Cooperation or Indo-US nuclear deal. The framework for this agreement was a July 18, 2005, joint statement released by Indian Prime Minister Manmohan Singh and then U.S. President George W. Bush. By this agreement India agreed to

separate its civil and military nuclear facilities and to place all its civil nuclear facilities under International Atomic Energy Agency (IAEA) safeguards and, in exchange, the United States agreed to work toward full civil nuclear cooperation with India. The U.S. Congress on October 1, 2008, gave final approval to an agreement facilitating nuclear cooperation between the United States and India. The deal is seen as a watershed in U.S.-India relations and introduces a new aspect to international nonproliferation efforts. The deal lifts a three-decade U.S. moratorium on nuclear trade with India. It provides U.S. assistance to India's civilian nuclear energy program, and expands U.S.-India cooperation in energy and satellite technology. But critics in the United States say the deal fundamentally reverses half a century of U.S. nonproliferation efforts, undermines attempts to prevent states like Iran and North Korea from acquiring nuclear weapons, and potentially contributes to a nuclear arms race in Asia. The proponents say that it an unprecedented deal for India. The benefits and the impacts that the country would be receiving after the deal are: India would be eligible to buy U.S. dual-use nuclear technology, including materials and equipment that could be used to enrich uranium or reprocess plutonium, potentially creating the material for nuclear bombs. It would also receive imported fuel for its nuclear reactors. Would encourage India to accept international safeguards on facilities it has not allowed to be inspected before. Recognizes India's history of imposing voluntary safeguards on its nuclear program. Rewards India's decision to adopt similar nuclear export standards as those imposed by the Nuclear Suppliers Group (NSG).

CRITICISM OF THE DEAL

The safeguards apply only to facilities and material manufactured by India beginning when the agreement was reached. The deal does not require India to cap or limit its fissile material production.

The deal does not require India to restrict the number of nuclear weapons it plans to produce. There are more cost-efficient ways to improve India's energy and technology sectors. The agreement takes unnecessary risks without adequate preparation or expert review.

While India and the United States have embarked on a campaign to strengthen their bilateral relations, as symbolized by the proposed US-India civilian nuclear deal, it appears as though New Delhi has similarly begun to pursue a more robust relationship with another major power: Iran. The two states have recently expanded cooperation in a number of key areas, including counterterrorism, regional stability, and energy security. India and Iran speak often about the civilization ties that have bound the two countries for more than a millennium. The two states enjoyed strong bilateral relations following Indias independence, overcoming such obstacles as Cold War superpower politics and Irans relationship with Indias arch-rival, Pakistan. The 9/11 attacks on the United States, however, changed the context in which Indo-Iran ties had previously operated. South Asia was suddenly brought to the forefront of prominence within the broader context of the global war on terrorism, causing considerable concern in both India and Iran. India watched Washington resuscitate its relationship with Islamabad; while Iran witnessed the United States dramatically expand its military footprint in the region by invading Iraq and Afghanistan. Already unsettled by the United States military strength as the worlds sole superpower, India and Iran have anxiously watched as Washingtons influence in the region has increased further. At the same time, New Delhi and Tehran have sought to strengthen their bilateral relationship: in 2003, the two signed the New Delhi Declaration, which set forth a vision of a bilateral strategic partnership.

PRESENT RELATIONS BETWEEN THE TWO COUNTRIES

Relations between India and Iran are far-reaching and multi-dimensional. The two states have recognized that they have a lot to offer one another and have acted to expand cooperation in a number of key areas.

Energy Security: Given its exhaustive energy needs coupled with the lack of its own reserves, India is one of the worlds largest energy importers. New Delhi and Tehran have explored various methods to get Irans abundant hydrocarbon reserves to India. In 2005, the two nations unveiled ambitious plans for an Iran-Pakistan-India (IPI) Gas Pipeline that would run directly from Tehran to New Delhi through Pakistan. Proponents of the pipeline contend that it would not only help meet Indias growing energy demands, but would also give the countries involvedespecially India and Pakistana stake in regional peace, possibly reducing the threat of conflict between the two states. Plans to move forward with the project, however, have stalled. Irans insistence that the price of gas being sold to India be renegotiated every five years, coupled with a dispute with Pakistan over transit fees, has prompted India to opt out of the current round of trilateral talks on the pipeline. New Delhi has said it is still interested in pursuing the deal but is likely to wait and see how the precarious political situation in Pakistan unfolds before resuming negotiations.

Political & Strategic Considerations: Political considerations have also motivated stronger Indo-Iran ties. Communal tension and violence between Hindus and Muslims have risen in some areas of India over the past decade. India s growing relationships with Israel and the United States and the domestic criticism it has engendered ha ve prompted India to reinforce its ties with the Muslim world. Because it lies on Pakistans western border, Iran also presents a potential strategic advantage for India. A close political relationship with New Delhi is similarly attractive, if not necessary, for Tehran. Following Irans designation as a member of the axis-of-evil in 2002, the United States has aggressively sought Irans international isolation. Close ties with a key regional, and increasingly global, power such as India could help Iran resist its rogue status and overcome Washingtons efforts in this regard. India has repeatedly urged a peaceful, diplomatic solution to Irans nuclear program and has largely resisted American pressure to reduce its ties with Tehran.

Counterterrorism and Regional Stability:

The New Delhi Declaration called for the

two states to broaden their strategic collaboration in third countries, a clear reference to

Afghanistan. The Talibans ascension to power in Kabul caused deep concern in both India and Iran. Both countries face a serious challenge from the threat of Wahhabist extremism, especially from Afghanistan. Thus, the two states welcomed the Talibans demise in October 2001 and made Afghanistans reconstruction and stability a common, critical goal. India and Iran have since established working groups on terrorism and counter-narcotics; both these initiatives focus on al-Qaeda. Additionally, the two countries have continued to work to counter Sunni militant threats in the region and have expressed a mutual preference for a comprehensive convention against international terrorism at the United Nations.

Defense Cooperation: One of the most significant provisions of the New Delhi Declaration sought to upgrade defense cooperation significantly between the two countries. Sea-lane control and security, as well as discomfort with the emerging presence of the United States in the Persian Gulf, were partially responsible for IndoIranian naval exercises in March 2003 and again in 2006 . Defense cooperation beyond this, however, has been sporadic and low-level. Expectations that India would assist Iran in upgrading its Russian-made defense system have not yet come to fruition. Cooperation in this area seems to represent generally strong Indo-Iranian relations rather than a broader defense alliance.

IMPLICATIONS OF NEW DELHI-TEHRAN AXIS FOR THE US

Strengthening Indo-Iranian ties has far-reaching implications for Indias bilateral relations with the United States:

Growing Indo-Iranian ties may potentially complicate New Delhis new strategic partnership with Washington. Although the Bush Administration and Congress ultimately moved forward with the historic civilian nuclear deal , Indias ties with Iran have influenced how some American policymakers evaluate U.S.-India relations.

As Washingtons most important strategic ally in the Middle East, Israels safety and security remains a top U.S. priority. The cornerstone of the Indo-Israeli strategic partnership is military and defense cooperation. Indias decision to launch the Israeli Tescar spy satellite in January

2008 indicates New Delhis potential willingness to enhance Israels security vis--vis Iran, especially with regard to Irans nuclear program.

If the United States reaches a point at which it will engage Iran in some capacity, India could provide a helpful role. New Delhis close relationship with Iran, the United States, and Israel puts it in a unique position as a potential intermediary, similar to Chinas role in the Six Party Talks with North Korea.

RECOMMENDATIONS
Because of Irans strategic importance and its own goal of ensuring a stable energy, it is difficult for New Delhi to abandon its relationship with Tehran. India should therefore pursue the following policy objective:

Distinguish sharply between Irans nuclear position and other areas of cooperation. While India will continue cooperation with Iran in pursuit of its own national interests, New Delhi should make it clear that it will continue to strongly support American efforts to bring Iran into legal compliance over its nuclear program. Voting against Iran in the IAEA for failing to satisfy its international obligations over its nuclear program, while simultaneously resisting American pressure to abandon the IPI gas pipeline project, is an effective illustration of New Delhi pursuing such a nuanced foreign policy. Given that New Delhi is unlikely to totally sacrifice its energy and strategic interests with Tehran for its relationship with Washington, the United States should also adopt a more nuanced foreign policy towards India. The United States should therefore pursue the following policy priorities:

Refrain from publicly expressing disapproval of Indo-Iranian ties except in areas that directly impact U.S. security, such as Irans nuclear and military expertise and concrete defense enhancements. Such prioritizing takes into account Indias national interests and

independence but at the same time fulfills principal U.S. objectives.

Explore the possibility of using India as a mediator between Washington and Tehranin relation to the nuclear question. Doing so would convey to New Delhi that Washington genuinely considers India a rising power with a role to play in international affairs, a recognition New Delhi has sought to secure.