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Iran verdict boost for India's trade prospects.


Date: 17-06-2013
Subject: Iran verdict boost for India's trade prospects
The decisive victory of moderate cleric Hasan Rouhani over conservative hardliners in Iran’s presidential elections without the need of a second round run-off is promising news for India and the world. The outcome may not immediately transform Iran’s long tense ties with the West as the matters of national security remain the domain of supreme leader Ayatollah Ali Khamenei, but the president runs the economy and wields important influence in decision-making.

Besides, Rouhani’s meteoric rise could offer latitude for a thaw in Iran’s foreign relations and more social freedoms at home after eight years of confrontation and repression under hard-line president Mahmoud Ahmadinejad. Coming a week after the US announcement of a 180-day exemption to India and eight other countries from sanctions, the development could help India boost its exports to Iran.

The election result reflects the broad public desire to correct the insular, right-wing trajectory of Iranian political discourse and bring the country out of the severe economic and diplomatic isolation imposed by world powers due to Iran’s nuclear programme. Rouhani, who has pledged greater engagement with Western powers, said: “This victory is a victory for wisdom, moderation and maturity... over extremism.” But he also urged the world to “acknowledge the rights” of Iran.

Iran has been battered by economic sanctions imposed by the US and its allies over its nuclear activities, resulting in soaring inflation and unemployment. While Iran maintains it will not develop nuclear arms, it has refused to curb what it says is its rights to nuclear power. There will be hope tinged with caution that Rouhani can progress nuclear talks. But with Ali Khamenei deciding state policy, Rouhani will face hurdles. Besides, Iranians may have to wait for change because of the country’s multi-tiered power structure under which the office of the president has worn away over the last two decades.

Source : newindianexpress.com

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