Chabahar Port: India and Iran have finalized a long-term contract to develop Chabahar Port. Negotiations for this port have been going on slowly between the two countries for over two decades. Geopolitical tensions occasionally interrupted the ongoing negotiations at this port.
Now, India is ready to sign an agreement with Iran for the agreement on Chabahar port for the next 10 years. The move is seen as a significant geopolitical overreach for Iran amid the busy election season. Shipping Minister Sarbananda Sonowal has to go to Iran on Monday for the signature.
For The First Time, The Management Of The Port Is In The Hands Of India
This is the first time India will take over port management abroad. This port is India’s major connectivity link to Afghanistan, Central Asia, and the larger Eurasian region. It will help balance China’s Belt and Road Initiative and Pakistan’s Gwadar port. There is a plan to connect Chabahar to International North-South Transport (INSTC), which will connect India to Russia via Iran. This port will enable India to bypass Pakistan to reach Afghanistan and eventually Central Asia.
It Is A Big Deal To Have A Contract Amid The West Asia Crisis
In April, the Ministry of External Affairs approved a proposal by India Ports Global to take over operations at Myanmar’s Sittwe port in the Bay of Bengal. Experts say that Sonowal is travelling during an important election campaign, which shows the importance of the agreement that has been in the making for the last few years. This agreement will enable India to operate the port it has financed for expansion. This contract is also very important as it is happening amidst the Middle East crisis, which has affected major trade routes.
Long-Standing Relationship
The Chabahar issue figured prominently at the BRICS summit in South Africa in August last year and later in the phone talks between Prime Minister Narendra Modi and the Iranian President in November on the Gaza crisis.
An agreement on Chabahar was signed during Modi’s visit to Iran in 2016. 2018, when the then-President of Iran, Hassan Rouhani, visited India, the issue of expanding India’s role in the port was raised prominently. This also came to light when External Affairs Minister S Jaishankar was in Tehran in January 2024. The new agreement will be valid for 10 years and will be extended. This port will also be helpful for Indian traders and investors interested in Central Asia.
An agreement was also reached earlier that included operations only at Shahid Beheshti Terminal of Chabahar Port. It is renewed every year.
