India–Iran Relations: Chabahar, Energy Security & BRICS

Context:

Recently, PM Modi met Iranian President Masoud Pezeshkian on September 11, 2026, ahead of the BRICS Summit 2026. Both leaders discussed the West Asia conflict, energy security, freedom of navigation, Chabahar Port, connectivity and BRICS cooperation.

Key Outcomes of the Meeting:

• • • West Asia Conflict: India reiterated that the ongoing U.S.–Iran and wider West Asia conflict should be resolved through dialogue and diplomacy. PM Modi emphasized India’s commitment to lasting peace and stability in the region.
    • Freedom of Navigation: India stressed the importance of ensuring freedom of navigation and commerce, particularly through the Strait of Hormuz, which is crucial for global energy supplies and international trade.
    • Energy Security: The leaders discussed the implications of regional tensions for global energy security. Iran’s substantial oil and gas reserves make it strategically important for India, although U.S. sanctions have constrained energy trade.
    • Chabahar Port: India reiterated the strategic importance of Chabahar Port for accessing Afghanistan and Central Asia while bypassing Pakistan. India signed a 10-year agreement in May 2024 to operate the Shahid Beheshti terminal.
    • Connectivity & INSTC: Both countries remain important partners in the International North-South Transport Corridor (INSTC), which aims to connect India with Iran, Central Asia, Russia and Europe, reducing transportation time and costs.
    • BRICS Cooperation: Iran’s participation in BRICS provides a new platform for India–Iran economic and strategic engagement. President Pezeshkian supported greater use of national currencies and proposed a Joint BRICS Insurance Company with an initial capital of $10 billion for infrastructure and energy projects.
    • Economic & Trade Cooperation: Both sides highlighted the potential for expanding non-oil trade, including Indian exports of basmati rice, tea and pharmaceuticals and imports of Iranian fruits and other commodities.
    • Regional & Multilateral Cooperation: India welcomed Iran’s participation in BRICS and SCO and emphasized greater cooperation through multilateral platforms to promote regional stability, connectivity and a multipolar world order.

Historical Background:

India–Iran relations have around 2,500 years of civilizational links. Formal diplomatic relations were established through the 1950 Treaty of Friendship. The Tehran Declaration (2001) and New Delhi Declaration (2003) strengthened strategic cooperation.

Importance for India:

• • • Energy security: Access to Iranian energy resources.
    • Connectivity: Chabahar and INSTC enhance access to Central Asia and Europe.
    • Geostrategic importance: Iran lies at the crossroads of the Persian Gulf, Central Asia and South Asia.
    • Trade: Potential for greater non-oil trade.
    • Regional stability: Cooperation can support peace in West Asia.
    • Multilateralism: Iran’s membership of SCO (2023) and BRICS (2024) creates new platforms for engagement.

Major Challenges:

U.S. sanctions, Israel–Iran tensions, instability around the Strait of Hormuz, China–Iran strategic cooperation, banking restrictions and slow connectivity projects complicate India’s engagement.

Conclusion:

India–Iran relations are strategically important for energy, connectivity and regional stability. India must maintain a balanced approach while protecting its strategic interests amid competing geopolitical pressures.