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Modi govt will exchange rice for Iran’s oil! Here’s how this masterstroke of “Chaiwala” will strengthen the value of Indian rupee front of US Dollar

U.S. President Donald Trump’s administration is taking a harder stance. It wants all oil imports from Iran to end by November, and it’s unclear if any waivers will be granted. In previous sanctions under Barack Obama, the government had allowed nations to continue purchases at reduced levels. This means countries will not be able to trade with Iran, and doing so, they risk a sanction on themselves. But India  has made it very clear that it is not going to weaken its ties with Iran despite strict reactions by the United States. Petroleum Ministry issued a statement that India will continue the oil trade with Iran despite US sanctions.

India is neither going to risk its relations with Iran nor it will break its relations with Russia. Along with this, the nation will also maintain its defence relationship with the United States.

But you must wonder how it is possible that India will harmoniously maintain its relation with the entire three nations while not agreeing to their terms even

The Strategy of India

Actually India has planned to enter into a new trade agreement with Iran, which will be effective from November 4, 2018, to overcome the US ban against the payment of dollars with Iran. Under this new agreement, rice will be sent from India in exchange for crude oil purchased from Iran. It is a modern form of old-fashioned barter system. When we give something in return of something we receive, our dependence on the dollar will be less and the rupee will get a new life.

India is already following the barter system with the Union of Soviet Socialist Republics. Now with Iran, also it will be taking advantage of this system. India’s barter system with Iran will be effective from November this year. The US has banned the payment of dollars with Iran but it has no rights to question the barter system prevalent between two nations. The government has carefully and actively taken the advantage of this sytem. This is called hitting two targets with one arrow. This is the style of Governance of PM Modi. Iran is also happy and here even India is happy. America is also walking alongside India and India is walking along with Russia too.

In 2017-18, about 16 percent of India’s oil supply had come from Iran, of which 23 million tonnes have been supplied. From the month of November, rice will be sent from India to Iran in exchange of crude oil. India’s oil needs will be fulfilled plus it will enable India to save the large amount of money given in the US Dollar and will also help in strengthening the value of rupee.

But along with this the nation has to keep check on food inflation. Now the government will have to pay attention to the regular supply of rice inside the country. There are many steps that need to be taken so that increasing rice prices in the country will put no additional burden on the public. In order to improve the income of the farmers, the government has already taken several decisions. The first priority of the government at this time should be to increase the number of farmers who are growing rice as well as  increase in their income.

India has now entered into new era where it is primarily concerned about its own interests first and rest all things later. This is the representation of New India. It is not the old India which will put the nation at stake. It is PM Modi’s New India; we have a powerful government which is not afraid to take any decision under international pressure when it comes to national interest. Be it using diplomacy, persuasion or power, we will go ahead with our interests.

Source : swarajyamag

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Niharika

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