New Delhi: In a significant development, India and Iran on Monday signed a long-term contract for the operation of a terminal at Chabahar port.
The contract was signed by India Ports Global Ltd and Ports and Maritime Organisation of Iran in the presence Ports, Shipping and Waterways Minister Sarbananda Sonowal, according to a series of posts on X by the Indian Embassy in Iran.
Speaking on the occasion, Sonowal said, "With the signature of this contract, we have laid the foundations of India's long-term involvement at Chabahar."
Sonowal added that the signing of this contract will have a multiplier effect on the viability and visibility of Chabahar port. According to him, Chabahar is not only the closest Iranian port to India but it is also an excellent port from a nautical point of view. Sonowal also held a meeting with his Iranian counterpart.
This marks the first instance of India assuming operational control of a port overseas.
The Chabahar Port, recognised as India's vital connectivity conduit to Afghanistan, Central Asia and the broader Eurasian expanse, is likely to serve as a counterbalance to Pakistan's Gwadar Port and China's ambitious Belt and Road Initiative. Plans are underway to integrate Chabahar with the International North-South Transport Corridor (INSTC), facilitating India's access to Afghanistan and Central Asia without relying on Pakistan.
The Chabahar Port in Iran has been pivotal for India's connectivity to Afghanistan and Central Asia, bypassing Pakistan. This pact indicates a long-term commitment to enhancing trade and strategic ties between India and Iran. It is pertinent to note that the Ministry of External Affairs had given the green light to a proposal by India Ports Global in April to take charge of operations at Myanmar's Sittwe Port in the Bay of Bengal. The visit of Sonowal to Iran comes at a very significant time when Lok Sabha polls are being conducted in India. The timing of the visit assumes significance as the West Asia crisis has been impacting critical trade routes.
Why is Chabahar important for India?
The Chabahar Port holds strategic importance for India as it provides access to Afghanistan and Central Asia. Chabahar provides India with a crucial transit route to Afghanistan and Central Asian countries allowing it to bypass Pakistan. This reduces dependency on Pakistan for trade and connectivity in the region.
Diversification of trade routes: By utilising Chabahar, India can diversify its trade routes, reducing reliance on traditional routes that may be subject to geopolitical tensions or disruptions.
Strategic counterbalance: Chabahar serves as a strategic counterbalance to China's growing influence in the region, particularly through its investments in the Gwadar Port in Pakistan, which is part of the China-Pakistan Economic Corridor (CPEC).
Regional stability: Enhanced connectivity through Chabahar can contribute to regional stability by promoting economic development and cooperation among Afghanistan, Iran and India. Chabahar Port plays a crucial role in India's efforts to strengthen its economic and strategic presence in the broader Indo-Pacific region.
Read more: India Issues Advisory, Urges Its Nationals To Remain Vigilant While Travelling To Iran, Israel
