The latest IAEA report on Iran's nuclear programme is "disturbing", Indian government sources say, The Times of India reported.
"We are very clear that a nuclear Iran is not in India's interest, it does not contribute to regional security," government sources said.
In Vienna, India, along with other IAEA board members, is working on a resolution to criticize Iran for continuing with its nuclear enrichment work in defiance of a series of strictures from the IAEA and UN Security Council.
The IAEA board, sources said, was working on a resolution that would try to satisfy all members, which by definition means that it will be largely anodyne.
India has already voted three times against Iran's nuclear programme at the IAEA. But it appears to have had little effect on Iran.
Iran's nuclear programme, though, will not affect India's broader engagement with the country. India's interests in Iran stem from a more-or-less common position on Afghanistan. India is keen to make Iran an important transit state for access to Central Asia. India believes Iran plays a balancing role in West Asia, particularly because India is unsure how the current uprising in the region will finally play out.
Moreover, India is the second-largest buyer of Iranian oil after China. Indian exports to Iran are valued at $2.7 billion in 2011/12 (April-March) while imports were about $10.93 billion, according to the website of India's commerce ministry.