Delhi Strike may sour IndiaIran trade ties

Delhi Strike may sour IndiaIran trade ties

 The suspected Iranian hand behind Monday’s attack on Israeli diplomat’s vehicle in New Delhi may drag India into the souring relations between the two arch rivals.

 The development can also complicate commerce between New Delhi and Tehran, already strained over oil payment  imbroglio.

The attack has come at a time when New Delhi is in the midst of trying to negotiate a delicate arrangement with Tehran over the payment for oil it imports.

Analysts say that if established that the attack was carried out by Iran, it will further complicate the matter as India would not like to antagonise any of the two Middle-eastern countries, one crucial for its energy needs and the other for strategic and defence supplies.

India is currently Iran’s largest oil importer, depending on it for 12 per cent of its crude oil needs. Tehran imports rice, wheat, pharmaceuticals and tea from India. But rice dominates all exports to that country as India is Iran’s largest supplier of rice, accounting for over 2 million tonne every year.

Indian exporters are of the view that their trade will suffer in the aftermath of uncertainty in the wake of the attack.

“Any escalation of tension between Israel and Iran is worrying. It will have an adverse impact on exports and overall trade sentiments between the countries,” Vijay Setia, President of the All India Rice Association, told Deccan Herald.