GS Paper II 2018 · Q20
15 marks · 250 words Other countries' policies & the diaspora X-Ray · Core #31In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation?
Approach · directive: “in what ways / how should”
What it asks · Explain how the US withdrawal from the Iran nuclear deal and the return of US sanctions affect India's energy, connectivity, trade and strategic interests, and outline a balanced response.
It asks 2 things — answer each
- In what ways: how the US withdrawal from the JCPOA and returning sanctions affect India's energy, trade, connectivity, diaspora and strategic interests
- How should India respond: economic and diplomatic measures that protect its interests and strategic autonomy
Open with · The JCPOA (2015) capped Iran's nuclear programme in return for sanctions relief; the US withdrawal in May 2018 and returning sanctions strain India's energy, connectivity and strategic interests.
Cover
- Energy security: Iran a major crude supplier; cuts raise costs and hurt the current account and rupee.
- Trade and payments: banking, insurance and shipping curbs; secondary-sanction risk for Indian firms.
- Connectivity: Chabahar and the Trilateral Agreement on Trade, Transport and Transit (May 2016), the Chabahar–Zahedan rail line and INSTC, of which India is a founding member.
- Diaspora and regional stability; strategic autonomy amid deepening US ties; non-proliferation stake.
- Response: MEA's line that the issue be resolved through dialogue and diplomacy; UN, not unilateral, sanctions; waivers (since then, the US exempted Chabahar in November 2018 and the port began operating under India in December 2018).
- Response: diversify crude, strategic reserves, coordinate with the EU, Russia and China, keep West Asia ties balanced.
Close with · Holding to dialogue and diplomacy while ring-fencing Chabahar keeps India's energy security, Afghan access and strategic autonomy intact.
Add value (verified)
- MEA spokesperson (9 May 2018): India has always held that the Iranian nuclear issue should be resolved peacefully through dialogue and diplomacy, respecting Iran's right to peaceful uses of nuclear energy (news report).India reacts to US exit from Iran nuclear deal - The Quint (national news report), 9 May 2018 ↗“India has always maintained that the Iranian nuclear issue should be resolved peacefully through dialogue and diplomacy by respecting Iran’s right to peaceful uses of nuclear energy”
- The Trilateral Agreement on Trade, Transport and Transit between India, Iran and Afghanistan was signed during the PM's visit to Iran in May 2016.India-Iran Bilateral Relations Overview - Ministry of External Affairs, November 2022 ↗“The Trilateral Agreement on Trade, Transport and Transit between India, Iran and Afghanistan was also signed during the visit.”
- India is a founding member of the International North South Transport Corridor.India-Iran Bilateral Relations Overview - Ministry of External Affairs, November 2022 ↗“India is also coordinating as a founding member of the International North South Transport Corridor”
- India's Shahid Beheshti terminal at Chabahar has been operational since December 2018.India-Iran Bilateral Relations Overview - Ministry of External Affairs, November 2022 ↗“Since the operationalization in December 2018, the port has handled cargo”
- In November 2018 the US State Department granted an exception from certain sanctions for the development of Chabahar port, an associated railway and non-sanctionable goods for Afghanistan (news report quoting the State Department).US exempts India from certain sanctions over Iran's Chabahar port - Business Today (national news report), 7 November 2018 ↗“with respect to the development of Chabahar Port, construction of an associated railway and for shipment of non-sanctionable goods through the port for Afghanistan's”
Question: UPSC's CS (Main) 2018, GS Paper II — paper ↗. Approach: Minimalist IAS, checked 3 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer· 357words · Minimalist IAS
The Joint Comprehensive Plan of Action (2015) capped Iran's nuclear programme in return for sanctions relief. The US withdrawal in May 2018, and the return of its sanctions, strike at three Indian interests at once: energy, connectivity and strategic autonomy.
How the controversy affects India's national interest
- Energy security: Iran is among India's main crude suppliers; forced cuts raise import costs, disturb supply and hurt the current account and the rupee.
- Trade and payments: curbs on banking, insurance and shipping complicate trade; Indian firms with US exposure risk secondary sanctions.
- Connectivity: India signed the Trilateral Agreement on Trade, Transport and Transit with Iran and Afghanistan in May 2016; Chabahar, the planned Chabahar–Zahedan rail line and the INSTC, of which India is a founding member, face delay and investor caution.
- Afghan access: Chabahar is India's route to Afghanistan and Central Asia that avoids Pakistan; its stalling would weaken India's regional role.
- Diaspora and stability: Gulf tensions threaten Indian workers there and their remittances, while Iran–Saudi and Iran–Israel rivalries force India to balance.
- Strategic autonomy: deepening defence and technology ties with the US bring pressure to follow its unilateral choices.
- 2015: JCPOA signed
- May 2016: Chabahar trilateral pact
- May 2018: US exits JCPOA
- Nov 2018: US exempts Chabahar (since then)
- Dec 2018: Chabahar operational (since then)
How India should respond
- Principled diplomacy: hold the MEA's stated line that the issue be resolved 'peacefully through dialogue and diplomacy', respecting Iran's right to peaceful nuclear energy; urge all parties to engage constructively.
- Sanctions policy: follow UN-mandated sanctions, not unilateral ones, and negotiate waivers. (Since then, the US exempted Chabahar's development, its railway and non-sanctionable goods for Afghanistan in November 2018, and the port began operating under India in December 2018.)
- Energy hedging: diversify crude sources, build strategic reserves and explore rupee-linked payments.
- Coalitions: work with the EU, Russia and China to keep legitimate trade channels open.
- Balance in West Asia: keep ties with Israel, Saudi Arabia and the Gulf even-handed to protect the diaspora.
Holding to dialogue and diplomacy while ring-fencing Chabahar as a project for Afghanistan's stability lets India protect its energy security and connectivity without surrendering its strategic autonomy.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 3 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.
