Political Ties: "Treaty of Perpetual Peace and Friendship" in 1952 .

India was amongst the first to recogni e the !aath Party"led go#ernment after Ira$ %ecame a repu%lic in 195&. 'owe#er( Ira$ sided alongside other )ulf *tates in supporting Pa+istan against India during the Indo"Pa+istani ,ar of 19-1 %ut we still maintained military and defence ties Ira$ had supported India.s right to conduct nuclear tests following its tests of fi#e nuclear weapons on /ay 11 and /ay 10( 199& 2112 President *addam 'ussein con#eyed Ira$.s "unwa#ering support" to India o#er the 2ashmir dispute with Pa+istan In 2110 India opposing any unilateral action %y the 3* and the 32 against Ira$ %y %ypassing the 34.Following the out%rea+ of war in Ira$( India supported a free(

democratic( pluralistic( federal and united Ira$

It normali ed its ties with the new democratically"elected go#ernment of Ira$ in 2115 5conomy: !efore the Iran"Ira$ war and the gulf war Ira$ had %een one of India.s largest e6port mar+ets 3.4. sanctions on Ira$ and Ira$.s isolation further diminished India.s commercial and diplomatic ties.Further slowed after 7merican in#asion

Ira$ has at least 98 of the world9s pro#en resources.:urrently(Ira$ is the third largest supplier of crude to India. In 2111( India imported 15 million tons of crude from Ira$. Imports:;&.0% 56ports:;.5% <thers: India is %ecoming the fa#ourite destination for engineering and medical education and healthcare. cultural e6change agreement ( technical coop. The :urrent *ituation 7s 2111 drew to a close( Ira$ formed its second democratically elected go#ernment since the adoption of the :onstitution in 2115. It was a year of change and transition( with the /arch 2111 national elections resulting in hea#y turno#er in the Ira$i Parliament and the 3.*. ending more than se#en

years of com%at operations in Ira$ in 7ugust. The nine month go#ernment formation process highlighted the increasing primacy of politics as the means for settling disputes in Ira$ %ut also pointed towards the persistent di#isions within Ira$i society. 2ey foci in the coming year are e6pected to %e efforts to implement power sharing agreements that underpin the new go#ernment and to define the nature of the partnership %etween Ira$ and the 3.*. as the =ecem%er 2111 deadline for the full withdrawal of 3.*. troops approaches.

=espite hard won gains in sta%ility( the conflict in Ira$ is not o#er. /eanwhile( the e6tended disputes o#er go#ernment formation illustrates the %roader continuing need to help Ira$is de#elop the capacities and institutions to pre#ent( producti#ely manage and resol#e conflict without resort to #iolence. These efforts will need to encompass not >ust national and local go#ernment( %ut also ci#il society groups and the education of Ira$9s ne6t generation to play roles as acti#e citi ens. 7 tremendous amount has already %een in#ested in Ira$( %ut a withdrawal without proper support for Ira$i institutions could ha#e e#en more costly conse$uences. The challenges posed %y security( political accommodation( ci#il go#ernance and rule of law( reconstruction( and economic de#elopment.The ris+s in#ol#ed are comple6( and in#ol#e a wide range of ethnic( sectarian and regional issues Indian 7ssistance: In response to 34 *ecretary")eneral9s appeal( India committed ;21 million for assistance to the Ira$i people.In cooperation with ,FP( India pro#ided fortified %iscuits to Ira$i school children and Ira$i refugees in *yria. In addition( India contri%uted ;11 million towards the International ?econstruction Fund Facility for Ira$ @I?FFIA for in#estments( reconstruction and de#elopment in Ira$. training of Ira$i Foreign *er#ice officers in diplomacy and training of Ira$i officials in Information Technology(scholorship slots in IT5:( training for downstream oil sector there has %een no larger strategic restructuring of Indian foreign policy towards Ira$.

the Ira$i go#ernment had in#ited India to step in and help in Ira$.s reconstruction with its technology and management e6pertise. Ira$ is slated to %e world.s %iggest oil supplier %y 2115 and Indian companies ha#e %een loo+ing forward to operating there. Ira$i %usinesses are also e6ploring opportunities for >oint #entures with their Indian counterparts in the field of cement( petrochemicals( hotels( oil and gas upstream and downstream pro>ects. !ut the lac+adaisical attitude of the Indian go#ernment has pre#ented a deepening of India"Ira$ economic engagement. India will ha#e to seriously thin+ a%out its role anew as a new Ira$ emerged in a new /iddle 5ast. =elhi has an e6panding set of interests in the region and !aghdad can once again emerge as a relia%le partner if ties with it are nurtured carefully. 7ppointing an am%assador is a good( al%eit modest( star :ompare this with :hina.s growing profile in Ira$. In the past three years( :hinese companies ha#e wal+ed away with sta+es in three of the 11 contracts the Ira$i oil ministry has signed.It has secured a second deal to help to de#elop one of Ira$.s largest oilfields "" the B.1 %illion"%arrel 'alfaya field in southern Ira$ as well as the rights to de#elop ?umaila( Ira$.s largest oilfield( alongside !P. It has agreed to cancel &1 percent of the &.5"%illion" dollar de%t it is owed %y Ira$ e#en as the two countries ha#e entered into trade deals #alued at ;0.& %illion o#er the last two years