 "Chabahar Port, Iran")
India is expected to sign an agreement with Iran to oversee the management of Chabahar Port for the next decade, making it New Delhi’s first venture into managing a port overseas. Shipping Minister Sarbananda Sonowal is scheduled to travel to Iran for the signing ceremony on Monday.
Plans are currently underway to integrate Chabahar Port with the International North South Transport Corridor (INSTC), facilitating India’s connectivity with Russia via Iran.
"As and when a long-term arrangement is concluded, it will clear the pathway for bigger investments to be made in the port," Foreign Minister S Jaishankar told reporters in Mumbai.
"As and when a long-term arrangement is concluded, it will clear the pathway for bigger investments to be made in the port," Foreign Minister S Jaishankar told reporters in Mumbai.
By leveraging Chabahar Port, India aims to bypass Pakistan and establish direct access to Afghanistan and beyond, into Central Asia.
Chabahar Port holds strategic importance for India as it serves as a vital link connecting the country to Afghanistan, Central Asia, and the broader Eurasian region. Moreover, this initiative is seen as a counterbalance to Pakistan’s Gwadar port and China's Belt and Road Initiative.
Chabahar Port agreement
Discussions on the development of Chabahar dates back to 2003. In 2013, India had committed to investing $100 million towards the development of Chabahar.
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The partnership on Chabahar Port was finally established in 2016 during Prime Minister Narendra Modi's visit to Iran. During this time, India also agreed to invest $85 million in the development of the Shahid Beheshti terminal.
In 2018, then Iran president Hassan Rouhani had further discussed expanding India’s role in the port, and has since come up during subsequent high-level exchanges.
While the existing pact between the two nations covers operations at the Shahid Beheshti terminal and is renewed annually, the new 10-year agreement is designed to supersede the original contract, providing a more robust framework for India's involvement in Chabahar Port's operations.
Landlocked Central Asian nations, such as Kazakhstan and Uzbekistan, also stand to benefit significantly from leveraging Chabahar as a gateway to the Indian Ocean Region and Indian markets.
Heightened political and geopolitical tensions
The timing of the agreement coincides with the escalating crisis in West Asia following Israel's attack on Palestine, which has disrupted key trade routes and accentuated the urgency of bolstering regional connectivity.
The Ministry of External Affairs (MEA) in April approved a proposal for India Ports Global to assume operational control of Myanmar’s Sittwe Port in the Bay of Bengal.
Sonowal's visit during this critical juncture highlights the importance of the impending agreement, which has been in the pipeline for several years.
