Swaraj's visit aims at re-energising ties with Tehran following the lifting of international trade sanctions on the strategically important West Asian nation.
Swaraj will co-chair a meeting of the India-Iran Joint Commission, that will review the entire gamut of bilateral relations, with the Iranian minister for finance and economic affairs, two people familiar with the developments said.
During Swaraj’s visit, connectivity is expected to be a key theme of discussions. India is also expected to exchange views with Tehran on the threat of terrorism posed by militant ISIL group and the situation in restive Afghanistan.
Chief among the connectivity issues on the table between India and Iran is the development of the Chabahar port in the Gulf of Oman.
Prior to Swaraj's visit, oil minister Dharmendra Pradhan will also be in Iran, aiming to scale up oil and gas trade and investment in Iran’s energy sector as well as downstream industries like fertiliser and steel.
According to Mintlive website, the visits to Iran are being viewed as a balancing act by India. Iran is key to Indian plans to ensure physical connectivity with Central Asia and Afghanistan.
India imports close to 12 million tonnes of crude from Iran. Its total crude import in 2015-16 was 184 million tonnes.
India is keen to increase crude procurement from Iran. However, significant amounts of its current crude requirements are tied up through existing long-term contracts.
Iran is currently the fifth largest oil supplier to India after Saudi Arabia, Iraq, Nigeria and Venezuela. Iran was India’s second largest supplier, after Saudi Arabia, till 2010-11, but lost share on account of sanctions, Mintlive reported.
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