India’s new 10-year deal to operate Iran’s Chabahar port aims to boost trade routes to Afghanistan and Central Asia, potentially rivaling Pakistan’s Gwadar port.
On Monday, India signed a 10-year agreement with Iran to operate the Chabahar port, with an investment of $120 million in its infrastructure. This deal, struck between the Indian state-owned company Ports Global Limited and Iran’s Port & Maritime Organization, is expected to enhance trade routes to landlocked Afghanistan and Central Asia.
India’s Shipping Minister Sarbananda Sonowal hailed the agreement as a significant “India-Iran flagship project,” emphasizing its potential to open up trade with Afghanistan and Central Asian nations.
India’s involvement in Chabahar dates back to May 2016, when a trilateral transit agreement was signed between Iran, India, and Afghanistan to develop the port into a key regional trade hub.
D.P. Srivastava, a former Indian ambassador to Iran, noted that the agreement highlights the robust bilateral relations between the two countries and will build upon the progress made since 2016. This initial engagement followed the easing of US sanctions on Iran, which were reimposed by the Trump administration in 2018.
Despite the current US sanctions on Iran, State Department spokesperson Vedant Patel indicated that Washington remains committed to enforcing these sanctions.
Prof. Sujata Ashwarya of the Center for West Asian Studies at Jamia Millia Islamia in New Delhi suggested that India’s involvement in Chabahar might prevent China, a primary US rival, from participating in the port’s development. She asserted that the US is unlikely to impose sanctions on India, as its presence in Chabahar serves to counter China’s influence.
Chabahar, located in southeastern Iran, is situated less than 100 km from Pakistan’s Gwadar port, a key project in the China–Pakistan Economic Corridor under China’s Belt and Road Initiative. Ashwarya pointed out that Chabahar has the potential to rival Gwadar, providing a secure trade corridor to Afghanistan and Central Asia and fostering India’s trade with these regions.
