(This is a reprint from NewsBred).
Iran has shown its hurt on India which has unilaterally stopped the import of its oil, unwilling to stand in the corner of the adversaries of the United States.
Ali Chegeni, Iranian Ambassador to India, didn’t mince his words in a press briefing in New Delhi on Tuesday, chiding India for succumbing to the “sanctions” of the United States.
The Donald Trump administration is going berserk in his attempt to destroy Iran, first pulling out of the JCPOA (Joint Comprehensive Plan of Action) despite Iran being faithful to the deal and piling on with economic sanctions without approval from its allies or world community in the form of United Nations.
India hasn’t imported oil from Iran for months now and couched its action as “reduced” and not “stopped” to suit its independent image. But now that Iran has gone public, India has been shown as having been arm-twisted by the United States.
Fans of India’s prime minister Narendra Modi and his muscular foreign policy could feel cheated as a multi-polar world—against the unipolar bullying of United States—is nearer to being a reality.
Russia and China, hit by sanctions and trade wars, are now joined at hips and Iran is a vital clog in their drive to keep Middle East, even Eurasia, out of bounds for the United States. European Union (EU) has created INSTEX (Instrument in Support of Trade Exchanges) to keep trading with Iran without resorting to direct transfers of money between the two entities. India is seen as one final piece of jigsaw of the emerging multi-polar world which would signal the further unravelling of US’ hegemony.
To be sure, the United States is one hell of an economic power and throws its weight to bring nations under its heel. It’s the nerve centre of global economy. Be it goods or money; data or transportation, the world doesn’t move much without the express will of the United States.
The United States is the kingpin of globalization. It anchors International Monetary Fund (IMF). It controls over 50 per cent of the venture capital, all but 10 per cent of currency trade use its dollars. Tech and finance doesn’t move without its dollars; it could cripple phone-operating systems of the world; it controls the fund-management assets. As The Economist puts it: “Across the panel, it’s normal to use a Visa card, invoice exports in dollars, sleep beside a device with a Qualcomm chip, watch Netflix and work for a firm that BlackRock invests in.”
If a firm is blacklisted, no bank would touch you with a barge pole and you are put outside the dollar payment system. There is a law in place which controls the foreign investment into Silicon Valley—if you fall foul, you could virtually say goodbye to transactions in semiconductors and software, a virtual ruination in today’s world.
Economy isn’t the imperative though which has guided India’s change of course vis-à-vis Iran. India needs to hedge its bets. That’s the demand of the geopolitics reality. It neither can annoy the chief actors of the drama nor it can afford to align itself with either of the two groups: United States vs the Russia-China combine. If it snuggles up to the United States, it loses the strategic and military advantage of Russia. It provokes China to join hands with Pakistan and cause mayhem on its borders. If it slips into the arms of Russia-China, it must brace itself to the devastation which the United States could unleash, like the one they have in Hong Kong.
India thus follows the sensible policy of keeping its suitors interested. Both the United States and China need India. The United States in its existential mission to squeeze China and badly needs India. China wants to keep India dormant for the same reason. It can’t afford a naval configuration of United States-Japan-Australia-India to spike its waters.
India too needs to do a balancing act of its own. So it relents on South China Sea to ensure China doesn’t help Pakistan to the extent its borders are put under siege. It relents to United States’ demand on Iran to ensure its military purchases from Russia are unimpaired. It knows the mischief the United States is capable of. India internally is in an ideological churn. And the United States is expert in fishing in troubled waters. Kashmir could so easily go horribly wrong.
I suspect Modi’s India, in its heart, is for a multi-polar world. United States doesn’t follow rules, it isn’t friends with anyone. All it wants is servility. Those who are independent—like Cuba, Venezuela, Russia, China, North Korea or Iran—face its wrath. India is still some leagues away before it could trust China completely and dump the United States for good. India is pivotal to Project Eurasia but can’t afford to annoy either of the two blocs. It’s a watchful tread by them.
It’s just not the United States: India has also made a choice in warming up to Saudi Arabia-Israel in the Middle East. They are Iran’s sworn enemies. By drawing close to the Gulf Muslim nations, India has left Pakistan sterile. Pakistan’s fervent appeal on religious lines to Muslim nations has drawn a very tepid response on Kashmir. Instead we have the situation where Modi is being accorded the highest civilian honour in UAE and Bahrain. This comes in the backdrop of Saudi Arabia, Afghanistan and Maldives conferring similar honours to him. It has isolated Pakistan on Kashmir.
Iran has shown it can’t wait for India interminably. It doesn’t want to be a minor player in India’s international diplomatic games. It’s a perfectly legitimate response given how Iran and its’ proud people are waging a war for survival. Modi government though is in the thick of its own war with internal and external enemies. One hopes, through the backdoor diplomatic channels, India and Iran remain warm to each other. Till the time is ripe.
It’s good for the world.