The contemporary political and economic relations between Iran and India, two major Asian powers are affected by various domestic, regional and international elements, especially after the Islamic revolution in Iran in 1979. The gradual increase of economic and political power of India in the regional and global interactions and the dominance of Look East Doctrine in the attitude of some of the Iranian decision-makers have caused both countries plan and pursue a new level of relations in terms of a strategic relationship framework. The relations between Iran and India have gone through many changes in the recent years such as energy security, nuclear program, relations between India and America and developments in Afghanistan. These developments have, on the one hand, created many limitations and on other hand many opportunities for the extension of bilateral relations between both countries. The question that arises now is whether Iran and India could enter the field of strategic alliance with each other? Iran and India share historical and cultural relations with strong roots and both countries are after a balanced and multi-polar power system against the America's unipolar system. It is to be noted that the way is paved for their political, economic and transportation cooperation among others. The hypothesis is that common interests and mutual vulnerabilities have strengthened the capacities for bilateral cooperation in the fields of economy and security. However, the formation of a strategic relationship between the two countries seems difficult due to the strategic relations between India and America, India and Israel and a lack of common vision on the power structure in international system.