India-Iran bilateral at BRICS Summit focuses on maritime security and de-dollarization

Livemint - Economy · 12 Sept 2026 · 2 min read
Prelims · International relations Mains · GS2 International relations High relevance

PM Modi and Iranian President Pezeshkian discussed maritime security in West Asia and BRICS cooperation, emphasizing local currency trade and energy security amid US-Iran tensions.

Key points

Maritime security was a key focus, with PM Modi stressing India's interest in safeguarding freedom of navigation and safety of seafarers in West Asia's strategic waterways, crucial for India's energy imports.

BRICS expansion saw Iran advocating for operationalizing economic cooperation through local currency trade and strengthening the New Development Bank to reduce dollar dependence.

Energy security discussions occurred against US-Iran tensions that threaten stability in the Strait of Hormuz, through which 20% of global oil passes and 60% of India's oil imports transit.

Global South solidarity was emphasized by both leaders, with PM Modi highlighting BRICS' role in building resilience among developing nations facing geopolitical and economic pressures.

Chabahar Port cooperation likely featured given its strategic importance for India's connectivity to Central Asia and Afghanistan, though not explicitly mentioned in the readout.

[GS3-Economy] The push for local currency trade aligns with India's broader de-dollarization efforts and aims to mitigate currency risks in bilateral trade with Iran, especially for oil imports.

[GS2-International Relations] The meeting demonstrates India's balancing act between US alliances and strategic autonomy in engaging Iran, a key regional player and energy partner.

Multilateral engagement saw both leaders commit to cooperation in BRICS and SCO, platforms where India can engage Iran without bilateral constraints.

Way Forward: India should institutionalize rupee-rial trade mechanisms, accelerate Chabahar Port development, and propose a BRICS maritime security framework for West Asia to protect commercial shipping lanes.

Key terms

BRICS

An intergovernmental organization comprising Brazil, Russia, India, China, South Africa and six new members (Egypt, Ethiopia, Iran, Saudi Arabia, UAE). It represents 41% of global population and 24% of GDP, serving as a platform for Global South economic cooperation and challenging Western-dominated financial systems through initiatives like the New Development Bank.

Strait of Hormuz

A critical chokepoint between Persian Gulf and Gulf of Oman, through which 21 million barrels of oil pass daily. Its security directly impacts global energy markets and India's oil imports, making it a vital national interest in India's West Asia policy.

New Development Bank

The BRICS' multilateral development bank established in 2015 with $50 billion capital. It aims to fund infrastructure projects in member countries using local currencies, reducing dollar dependence and providing alternative financing to Western-led institutions like IMF and World Bank.

Chabahar Port

Iran's only oceanic port developed with Indian investment ($500 million commitment). It provides India alternative connectivity to Afghanistan and Central Asia bypassing Pakistan, while giving Iran an economic lifeline under US sanctions. Part of International North-South Transport Corridor.