The traditional Indo-Iranian relations go far back into history when modern Iran was known as Mesopotamia and Persia. Iran has the largest Shiite population in the world, nearly 3.5 crores shias , 40% of the world 18 crores shias reside in India. With such historical relations, India can hardly afford to ignore Iran. Unlike The Indian Diaspora in other Arab states, Iran does not have many Indians that transfer back funds back home. The balance of trade has always been favour of Iran with oil being the major import. India needs Iran not only for gas and Oil but, also because commonality of thinking on several issues and its geostrategic location. Iran provides link to the Afghanistan and central Asia. Iran has become crucial test for India’s foreign policy. The issue brief is written by Air Marshal ( retd ) Dhiraj Kukreja AVSM,VSM . He is the is alumni of the national war college in the USA.