摘要:AbstractDevelopment being critically dependent upon the import of crude oil, India entered into regional trade agreements with West Asian states, particularly Iran. India signed RTA with Iran because its terms of trade seemed advantageous to others. Besides, a curious trend was observed that a rising GDP was related to a growing total trade growth rate between India- Iran. At present, India's fallen GDP coincides with India's reduced oil import from Iran. Due to the Iranian nuclear crisis, India has been under immense external pressure to halt oil trade Iran which can, consequently, stifle development. India's response has revealed its unique trade diplomacy-‘inclusive alignment’, especially useful in troubled political climes. Inclusive alignment refers to alignment to both powers. Thereby, it does not commit oneself to a singular bloc. Thereby, one could maintain one's neutrality and balance against the US-led sanctions against Iran, and continue Iranian oil imports.