Iran nuclear agreement: Why its a good news for Indian economy

By Sakchi Srivastva

A big step has been taken by the West and Iran after they signed a tentative agreement which deals with curbing Iran's nuclear program for at least a decade. This outcome was possible after the conclusion of marathon talks which took place in Switzerland for 8 days.

"And after many months of tough and principled diplomacy, the United States – joined by the United Kingdom, France, Germany, Russia, China, and the European Union – achieved the framework for a deal," Barack Obama said.

This breakthrough agreement has put a full stop at all the allegations and doubts on Iran's status of seeking to build a nuclear bomb. It is the first utilitarian deal signed in 12 years between the west and Iran. Iran has agreed to not enrich its uranium over 3.67 per cent for at least 15 years.

India, which is Iran's second-biggest buyer on an annual basis after China, has been gradually reducing its oil imports from Tehran under US pressure. For the first time in a decade, India did not import any oil from Iran in March. But now after the deal India will embrace large quantity of oil from Iran.

Here's how the deal pans out for India.

1. Iran's export was restricted to 1 million barrel per day. It was a very difficult situation for our country. But now this deal has come as a boon.
2. Friendly relations with Iran could prove to be India's launch pad in the wealthy West Asian market for our manufactured goods.
3. Import of oil from Iran will also keep price shocks at bay.

"India has always maintained that the Iranian nuclear issue should be resolved peacefully by respecting Iran's right to peaceful uses of nuclear energy as also the international community's strong interest in the exclusively peaceful nature of Iran's nuclear programme. The announcement yesterday underlines the success of diplomacy and dialogue, which India has always supported and which we hope would lead to a comprehensive agreement by June 30, "
the external affairs ministry said in a statement.