India as a democratic country prefers to have cordial relationship with other countries. Several reasons can be cited which emerge from the point of view of economy, trade, business, advanced technologies, transport and culture.
In the first place historical importance plays an important role in cultivating a relationship between the two countries and has originated thousands of years ago. For instance the culture, language and traditions of both countries resemble with each other in many respects. Due to the cordial relations one can observe the emergence of trade routes that has connected the two countries.
India as a developing country considers Iran for their developments related to strategy and economy. Both the countries consider Pakistan as their rival and hence such attitude can favour India to play their diplomatic role in a clever manner. During war breakouts India can benefit a lot from Iran with the geographical factors due to close proximity and acquaintances.
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Iran is moreover rich in oil and natural gas production and supply to the other countries of the world. From the point of view of protection of the environmental resources along with green nation as a rule India mostly depends upon Iran as one of the invaluable supplier of fuels. So India wants to maintain good relationship with Iran for crude oil supply.
Strategic relations enable India to have better transport routes and links with Iran that can enable India to bypass Pakistan. In addition mineral wealth of Afghanistan can be explored to a great extent offering financial benefits to India along with meeting the energy needs in a secured manner.
Strategic importance arises due to the Chabahar port which can function as a natural gateway to India into Afghanistan and central Asia. Investments on the above project by Iran facilitate India with a direct shipping route.
In order to secure best trade and business India needs to maintain cordial relations with Iran which is very important from the point of view of geographical location and the factor of economy.