The chapter focuses on the potential of emerging strategic partnership relations between India and Iran. It critically assesses the role of project diplomacy of these two states in building energy and transport connections in the Middle East and Central Asia and their implications for Russia. The presented analysis demonstrates that one of the basic features of India's foreign policy, that is, the balancing behaviour, also manifests itself in India's relations with Iran, a subject of Western sanctions for many decades. However, over the past decade the positions of pro-American forces in India have significantly strengthened and this change can undermine the general consensus on foreign policy that has existed for more than half a century. © 2025 Elsevier B.V., All rights reserved.