From Bishkek to New Delhi
Iran’s growing role in East
The economic and geopolitical developments of the past week have highlighted Iran’s growing links with the East and its position in the emerging economic order. As India prepares to host the BRICS summit in New Delhi on Sept. 12-13, following the Shanghai Cooperation Organization (SCO) summit in Bishkek attended by senior Iranian officials, Iran’s position in the emerging economic order in the East has become increasingly difficult to overlook. These two events were not merely diplomatic showcases, but pointed to a practical roadmap for Iran to overcome economic isolation and enter the emerging global economic order.
BRICS: new economic opportunities for Iran
India, which holds the rotating BRICS presidency, has announced that more than 350 specialized meetings have been held in 25 cities across the country ahead of the leaders’ summit in New Delhi. The scale of the preparatory work reflects the members’ efforts to further develop BRICS as an economic partnership with practical rules and mechanisms.
According to official figures, the 11 BRICS members account for more than 40% of the world’s population and about 40.7% of global GDP on a purchasing-power-parity basis in 2025. The group also accounts for about a quarter of global trade flows.
For Iran, active participation in the bloc means access to large markets without relying on the dollar or the Western financial system. The expansion of trade in national currencies, the establishment of the New Development Bank and the creation of credit lines among members have created a framework through which Tehran can expand its non-oil exports, particularly petrochemicals, steel, agricultural products and knowledge-based goods, to newer members such as Saudi Arabia, the United Arab Emirates, Egypt and Indonesia.
Practical steps to harmonize customs standards and facilitate the transit of goods among members are expected to be finalized at the New Delhi summit. Given Iran’s position along major transit corridors, its share of this transit could reach double digits.
Iran’s economy and finance minister, before beginning his trip to Russia and then India to attend the summit, said the purpose of the visits was to use foreign relations to strengthen the domestic economy, expand trade and production, attract financing and investment, and create new opportunities for Iran’s economy.
“Iran can play a very important role along this route by connecting the Russian economy and the countries to the north of the region with markets in the south, particularly India,” he said.
“BRICS is now one of the most important economic groupings of emerging countries, and Iran’s presence in this group provides new opportunities to expand the country’s economic and financial cooperation,” he said.
No to “law of the jungle”
A significant development, meanwhile, took place in Bishkek.
At the SCO summit, the positions expressed by senior leaders of the member states on regional developments were closely watched.
Chinese President Xi Jinping, speaking at both the main SCO meeting and the “SCO Plus” meeting, called for an “equal and orderly” multipolar world and said the international community should reject “double standards, exceptionalism, foreign interference, bullying and the law of the jungle” and advance the rule of law in international relations.
On the sidelines of the summit, the Indian prime minister and Iran’s president held a meeting and stressed the expansion of trade ties. India’s ambassador to Kyrgyzstan also said that using the North-South corridor through Iran would create a “major leap in regional trade.”
The comments came as the US seeks to create insecurity in the Persian Gulf and the Strait of Hormuz. An analysis by Japan’s Nikkei, however, said the White House’s threatening approach had made a lasting end to the conflicts more difficult and would not alter the geopolitical reality.
Iran’s role as a Eurasian gateway
The Central Asia Times analytical outlet has described the ports of Bandar Abbas and Chabahar as the only safe and cost-effective route for landlocked Central Asian countries to reach open waters. At a time when war and sanctions have increased the risks or costs associated with many alternative routes, including the Black Sea and the Suez Canal, the Iranian route has emerged as the most logical option because of its relative security and lower cost.
The completion of the Rasht-Astara railway and the expansion of Chabahar port in cooperation with India could significantly strengthen Iran’s role in regional transit. The expansion of transit could provide an additional source of foreign exchange for Iran and help reduce its reliance on oil revenues over the coming decade.
Looking ahead
The convergence of the East presents the best opportunity for Iran’s economy. BRICS provides an institutional and financial platform, while the SCO provides security and transit support.
Developments in recent weeks have shown that the US cannot neutralize Iran’s position in the emerging economic order through pressure and threats. The next step is for Iran’s economic team to turn these diplomatic opportunities into signed contracts, active credit lines and transit projects under way.
The future the West had envisioned for Iran was one of isolation. What has taken shape through BRICS and the SCO, however, is a future of integration, connectivity and prosperity.
IRNA contributed to this article.