TAG: GS 2: INTERNATIONAL RELATIONS
THE CONTEXT: India and Iran have signed a 10-year contract for the operation of a terminal at Chabahar port, a deep water port in Iran’s Sistan-Baluchistan province.
EXPLANATION:
- This agreement is part of India’s broader strategic and economic vision for Central Asia and beyond.
- Despite the strategic importance of Chabahar, the project has faced numerous challenges over the years.
Strategic Importance of Chabahar Port
- Chabahar is the Iranian port closest to India, providing a secure access point for large cargo ships due to its location in the open sea.
- The port is strategically vital for India as it offers a route to Afghanistan and Central Asia, bypassing Pakistan.
- The concept of modern Chabahar emerged in the 1970s, with its strategic importance realized during the Iran-Iraq war in the 1980s.
- The idea of developing Chabahar port as a strategic hub was first discussed in 2002 between Iran’s National Security Advisor Hassan Rouhani and India’s Brajesh Mishra.
- In January 2003, President Mohammad Khatami of Iran and Indian Prime Minister Atal Bihari Vajpayee agreed on a strategic cooperation roadmap, recognizing the port’s potential to link South Asia with the Persian Gulf, Afghanistan, Central Asia, and Europe.
- However, India’s growing relationship with the United States under President George W. Bush, and the US’s designation of Iran as part of the “axis of evil,” hindered the progress of the project.
Revival and Progress After 2015
- Significant progress was made post-2015 after the Iran nuclear deal framework.
- In April 2015, Afghan President Ashraf Ghani’s visit to India and his discussions with Prime Minister underscored the importance of Chabahar for regional connectivity.
- In May 2016, India, Iran, and Afghanistan signed the Trilateral Agreement to establish the International Transport and Transit Corridor. This agreement was aimed at developing Chabahar port as a viable gateway to Afghanistan and Central Asia.
- Despite the Trump administration’s hostile stance towards Iran, India managed to secure a waiver from the US sanctions for the Chabahar project, citing its importance for Afghanistan’s connectivity.
Recent Developments and Investments
- India has invested approximately $120 million to equip and operate the port, with an additional credit window of $250 million for infrastructure improvements.
- IPGL (India Ports Global Ltd) has been operating the port since December 2018, and significant shipments have been handled, including humanitarian assistance during the COVID-19 pandemic.
- In August 2023, Indian Prime Minister and Iranian President discussed the finalization of a long-term contract at the BRICS Summit, leading to the signing of the 10-year agreement.
Integration with INSTC
- The Chabahar port is also seen as a critical link in the International North-South Transport Corridor (INSTC), a multi-modal transportation route initiated by Russia, India, and Iran.
- The INSTC aims to connect the Indian Ocean and Persian Gulf to the Caspian Sea and further to northern Europe.
- Phunchok Stobdan from IDSA noted that INSTC and Chabahar port would complement each other, enhancing India’s connectivity with Russia and Eurasia.
- However, the geopolitical tensions arising from the Ukraine war have complicated the future of this project.
SOURCE: https://indianexpress.com/article/explained/what-are-indias-stakes-in-irans-chabahar-port-9326692/
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