Topic: Political and Economic implications of the Indo-Iran gas pipeline

The recent Indo-Iran Gas Pipeline (proposed) agreement has already been showing its political and economic implication. The most important is India’s move towards energy security which will be transformed into sustained economic growth. On the part of Iran, it will open its market to a satisfying neighbourhood which will integrate its economy with India’s one of the fastest growing world economy.

As it passes through Pakistan, it will gain with charging transit and maintenance costs worth billions of dollars good for Pakistan’s economy. Politically, it is proving one more Confidence Building Measures (CBM) between India and Pakistan to diffuse political tensions in the sub-continent.

Recent nuclear stand-off of Iran with Western powers has also proved Iran coming closer to India to use its contacts to diffuse the crisis while western powers have also approached India to use its good offices to bring Iran to the talking table. It is also a direct implication of growing contacts between Iran and India due to the gas pipeline project.

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