India Iraq Relations: Trade Agreement, Summit, Partnership - UPSC Notes

India and Republic of Iraq enjoy strong bilateral relations grounded in shared values and international cooperation. Republic of Iraq, located in the Middle East / West Asia, holds significant influence in global political and security affairs. Since establishing diplomatic relations in 1952 (Treaty of Perpetual Peace and Friendship), India and Republic of Iraq have cultivated a strong and evolving partnership. India and Republic of Iraq have a Embassy of India in Baghdad, Embassy of Iraq in New Delhi, with each country hosting an embassy in the other’s capital for effective communication. The relationship between India and Republic of Iraq holds Energy security, regional stability, counter-terrorism, trade, with an emphasis on defense collaboration, economic synergy, cultural exchanges, and collective global security efforts. 

• India and Republic of Iraq work together in Oil and gas, trade, investment, reconstruction, education, culture such as defense, nuclear energy, trade, space exploration, oil and gas, cybersecurity, culture, and education. 
• To further enhance their partnership, India and Republic of Iraq have secured several agreements, including those in Treaty of Perpetual Peace and Friendship (1952), Cultural Affairs Cooperation (1954), Economic and Technical Cooperation Agreement (1973), Agreement on Energy cooperation (2013), MoU on Water Resources Management (2013), MoU on Foreign Office Consultations (2013), MoU for Training of Diplomats (2013). 
• The trade volume between India and Republic of Iraq has reached USD 3336 billion (FY 2023-24), highlighting the strengthening of their economic ties. 
• India’s export relationship with Republic of Iraq is marked by the regular supply of Refined petroleum, rice, buffalo meat, pharmaceuticals, engineering goods, iron, tea, fruits, apparel, vegetable oils across various industries. 
• Among its major imports from Republic of Iraq, India includes Crude oil, petroleum coke, refined petroleum, raw wool, sulphur, dates, reflecting robust trade relations. 

ITEC training, ICCR scholarships, cybersecurity training, university collaborations initiatives between India and Republic of Iraq reflect shared goals in science, skills, and inclusive education. In this article, we have explored Defence Partnerships, Joint Commissions, and Bilateral Trade Flows for India Iraq Relations, offering valuable insights for UPSC aspirants preparing for GS Paper 2 and PSIR Optional. 

India Iraq Relations Establishment of Diplomatic Ties

India and Republic of Iraq share a history that began with Ancient trade (Indus Valley-Mesopotamia), cultural links, 1952 Friendship Treaty. Past visits by national leaders, including Iraqi NSA Mr Qassem Al-Araji in March 2023, Dr S Jaishankar met with Iraqi Deputy Prime Minister and Foreign Minister in 2024, Then-Vice President of Iraq Taha Yassin Ramadan, 2000, played a key role in fostering India–Republic of Iraq cooperation. 

• Historical challenges like Iran-Iraq War, Gulf War (1991), 2003 Iraq War impacted ties have shaped the course of India–Republic of Iraq relations. 
• India and Republic of Iraq have built their relationship through phases like Strong ties (pre-1980s), decline (wars/sanctions), post-2003 normalization and growth.

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Strategic & Political Cooperation of India Iraq Relations

Indias ties with Republic of Iraq are of Energy security, regional stability, counter-terrorism, trade, often involving defense cooperation, economic collaboration, cultural exchanges, and shared global security objectives. 

• India and Republic of Iraq deepen their Historically training Iraqi pilots, potential for strengthening by focusing on joint training, defense technology exchange, and security collaboration. 
• With Agreed to strengthen cooperation, India supported Iraq against ISIS, India and Republic of Iraq counter threats by sharing intelligence and conducting coordinated safety operations. 
• India’s strategic Cybersecurity training for Iraqi officials by India (C-DAC) partnership with Republic of Iraq advances innovation, digital infrastructure, and security coordination. 
• With United Nations, NAM (historically), India and Republic of Iraq promote sustainable development, global peace, and mutual prosperity. 
• Iraq is a top crude oil supplier to India, discussions on JVs between India and Republic of Iraq involves knowledge exchange, capacity building, and expanding access to clean energy. 
• The collaboration between India and Republic of Iraq in the domain of Potential area, India has advanced capabilities aims to enhance mutual research efforts, technology sharing, and exploration missions. 
• India and Republic of Iraq have joined hands in sectors like Air India flights (suspended Nov 2019), significant religious pilgrimage to encourage seamless connectivity and tourism collaboration. 
• No active Double Taxation Avoidance Agreement (DTAA) found, discussions reported in 2019 between India and Republic of Iraq play a crucial role in easing tax-related barriers for businesses and investors.

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Trade and Economic Overview of India Iraq Relations

• To enhance mutual cooperation, India and Republic of Iraq have formalized several agreements, particularly in the realm of Treaty of Perpetual Peace and Friendship (1952), Cultural Affairs Cooperation (1954), Economic and Technical Cooperation Agreement (1973), Agreement on Energy cooperation (2013), MoU on Water Resources Management (2013), MoU on Foreign Office Consultations (2013), MoU for Training of Diplomats (2013). 
• With a trade volume of USD 3336 billion (FY 2023-24), India and Republic of Iraq continue to strengthen their bilateral economic relations. 
• Investment flows comprise Indian companies invited to invest in Iraqi oil/gas, OVL invested, supported by notable partnerships and co-investments between India and its trade counterpart. 
• Formal sessions like India-Iraq Joint Commission Meeting (18th session June 2023), organized annually or biennially, aim to review and enhance the trade and investment cooperation. 
• India and Republic of Iraq have provided multiple India committed US$20 million (2003) for relief, US$10 million to Reconstruction Fund Facility to promote economic development and enhance bilateral financial relations. 
• The export component from Republic of Iraq to India was valued at In 2024, India imported $2985 billion worth of goods from Iraq, with mineral fuels, oils, and distillation products accounting for the vast majority. 
• India regularly exports Refined petroleum, rice, buffalo meat, pharmaceuticals, engineering goods, iron, tea, fruits, apparel, vegetable oils to Republic of Iraq, supporting mutual trade ties and economic collaboration across multiple sectors. 

According to bilateral data, Republic of Iraq imported FY 2022-23, India's exports to Iraq reached USD 269 billion, worth of goods from India. IOCL, HPCL, BPCL (oil imports), Lanco, Shapoorji Pallonji, Reliance, Jindal, Electrotherm (past/present projects/operations) represent the Indian private sector’s presence in Republic of Iraq.

Socio-Cultural & Diaspora Engagement

India and Republic of Iraq gain from the impactful presence of their diaspora, which plays an essential part in enhancing Workers in construction, oil sector, healthcare (historically), pilgrimage. India builds strong bonds with its partner country through Strong historical ties, religious pilgrimage (Karbala, Najaf), ICCR scholarships, film popularity that spread cultural awareness. With ITEC programme, ICCR scholarships, training for Iraqi officials, university collaborations, India and the other country are sharing knowledge and learning together. 

• The Indian-origin population in Republic of Iraq helps solidify the cultural and economic ties between the two countries. 
• India and Republic of Iraq employ Economic partnership, development aid, capacity building, cultural diplomacy, educational exchange as a means to solidify their geopolitical positioning and expand their influence globally.

India Iraq Relations Recent Developments

EAM Jaishankar met Iraqi DPM/FM (Sept 2024, Oct 2021), Iraqi Oil Minister (June 2023) serve as key milestones in advancing the comprehensive partnership between India and Republic of Iraq.  

• A range of developmental activities fall under Karbala Refinery Project (Indian workers), Indian companies in construction, oil exploration (potential), highlighting shared goals. 
• Strategic cooperation is sometimes hindered by challenges like Regional instability, security concerns, diversifying trade beyond oil, infrastructure deficits. 
• India and Republic of Iraq are expected to enhance cooperation based on shared Expanding non-oil trade, Indian participation in reconstruction, enhanced energy partnership, defense ties.

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UPSC Relevance of India Iraq Relations

• UPSC Prelims often asks about MoUs, recent diplomatic events, and bilateral cooperation, making this topic high-yield.
• India–Republic of Iraq relations are integral to GS Paper 2 (International Relations) under bilateral, regional, and global groupings.
• This theme can be integrated into philosophical essays discussing global responsibility, cooperation, and equity.
• International relations within Public Administration or Law optional papers can cite treaties, agreements, or global governance themes from this relationship.