As the world heaves a sigh of relief over the US and Iran inching closer to signing the much-awaited peace deal, discussions have been focusing on Tehran, the maritime trade route, and the crude oil supply network. Global crude prices have already dropped below the US$ 80 a barrel level. Trade routes are set to be unchoked.

But beyond this lies a significant opportunity for India, which New Delhi is quietly eyeing - to partake in the reconstruction process in Gulf countries as well as Iran.  

Funds For Infrastructure

A US$ 300 investment fund has reportedly been set aside for Iran. That apart, large sums would also be required to rebuild infrastructure in several parts of the other Gulf nations, especially for their energy facilities.

According to Rystad Energy, the “repair and restoration costs for energy-linked infrastructure as a result of war in the Middle East could hit US$ 58 billion.” The amount, in fact, could be pushed upward significantly.

“For India, the reconstruction and rebuilding exercise in the West Asian region would be critical as it is set to open up vast opportunities for many domestic companies, including contractors and engineering and logistics majors. Talks will start soon for the process,” a person familiar with the development told The Secretariat.

A large number of Indian majors such as Larsen & Toubro, Shapoorji Pallonji Group, Engineers India Ltd, Tata Consultancy Services, Tech Mahindra, and Wipro are already established names in the Gulf region. But now many of these will look at Iran too.

India-Iran Connectivity And Economic Cooperation

India has been developing the Chabahar Port in Iran. Sources said that work at the crucial port will now pick up steam, considering the peace pact.

The port, which allows bypassing the geographical routes connected to Pakistan, is critical for India’s strategic autonomy and expansion of network and reach to Central Asia. The port, which is being developed as a transhipment hub, will be linked to the International North South Transport Corridor (INSTC).

The INSTC, once complete, will facilitate easier movement of freight between several countries, including India, Russia, Iran, Afghanistan, Armenia, Belarus, Bulgaria, Kazakhstan, Kyrgyzstan, and Tajikistan, and will provide an impetus to trade between New Delhi and Tehran.

India is also set to start purchasing oil from Iran, which was one of its key suppliers before the sanctions until 2019. New Delhi was forced to halt imports following the sanctions and pressure from the US. Supplies via the Strait of Hormuz were also hit during the US-Iran conflict.

Though the finer details of the US-Iran peace deal are still not known, reports suggest that Washington is likely to give its nod to Tehran to resume crude supplies in the global market.

The formal agreement will be signed in Switzerland.

“The world is waiting for the US and Iran to sign the peace deal, and while that is much needed, the focus will be on the implementation of the pact, which will be crucial for normalising trade flows. We need to see if the signatories finally stick to the agreement,” said Pankaj Chadha, Partner and CEO, Jyoti Steel Industries and chairman, Engineering Export Promotion Council (EEPC).

Will June 19, 2026, finally mark an end to decades of US-Iran conflict? The world is waiting to see.