The Chabahar port deal is a golden opportunity for India to reduce the influence of China in Central Asia and Afghanistan and to counterbalance the Gwadar port.
Through Chabahar Port, India can be connected to Afghanistan, Central Asia and Europe through a trade link.
First of all, in 2015, an MOU was signed between both the countries, i.e. India and Iran, in which it was said that the development of Chabahar port was discussed.
After this, in 2016, again a bilateral agreement was signed and finally on 13th May 2024, a deal was signed between both the countries, in which it was said that India will invest around $120 million in Chabahar Port and will also provide a credit line of $250 million to Iran, under which it would be able to develop and maintain Chabahar port.
A 10-year long term agreement was signed between India’s IPGL and Iran’s Port and Maritime Organisation, under which the Shahid Beheshti terminal of Iran’s Chabahar port will be given to India.
The Chabahar port located in the Gulf of Oman is an alternative way to the China-Pakistan economic corridor and the Gwadar port in Balochistan being built by China, through which India can directly connect with Central Asia, bypassing Pakistan.
Key points of the deal
According to this deal, India Port Global Limited will operate the Shahid Beheshti Terminal of the port.
India will invest in the handling capacity and upgradation of the port.
Both countries are ready to increase trade to Afghanistan and Central Asia through this port through road and rail.
Why is it important for India and Iran?
The Chabahar Port Deal is important for both India and Iran, so first of all let us know why this port deal is important for India.
- Relations between India and Pakistan are always bad, so through this deal India will be able to connect directly with Central Asia and Afghanistan, that too while bypassing Pakistan.
- INSTC which is 7200 kilometers long connects India to Central Asia and Russia, but this is a long route, as an alternative to which India has signed the Chabahar Port deal through which India will be able to connect to Russia by taking a smaller route.
- Iran also has the potential to be an energy supplier, so this route can be easily used for the supply of oil and gas in the future.
- There are many sanctions imposed on Iran. If this Port deal is executed then Iran will also get a chance to connect with South Asian countries.
- Relations between Iran and India will become stronger and India will also get a partner in this region.
- The Chabahar Port deal will be a reply to the Gwadar Port built by China.
Chabahar vs Gwadar: The Strategic Showdown
Situated in Iran’s Sistan Balochistan province and at the mouth of the Strait of Hormuz, this port is approximately 768 miles away from India’s Kandla Port.
Apart from this, this is the only port of Iran which has direct access to the Indian Ocean. It is approximately 170 kilometers away from the Gwadar port which is supported by China.
One-third of the time can be saved in sending goods to Central Asia through Chabahar Port.
This port located in the Balochistan province of Pakistan is a deep sea port which is 533 kilometers away from the Karachi port and it is 120 kilometers away from the border of Iran.
Located outside the Strait of Hormuz, at the mouth of the Persian Gulf, this port is monitored and managed by a Chinese state-owned company.
The seaport is Pakistan’s third most important seaport as it connects to the Middle East, South Asia and Central Asia.
Impact on China and Pakistan
Through this deal, China’s Belt and Road Initiative is under pressure because India is offering a route parallel to China’s Belt and Road Corridor.
Central Asia, which is considered landlocked countries, will also gain direct access to the Indian Ocean through this route.
As India bypasses Pakistan and connects with Afghanistan and Central Asia, Islamabad will lose a key bargaining tool in the region.
The Strait of Hormuz through which 20% of the global oil passes, the presence of Indian naval forces there poses a threat to Beijing and Islamabad.
Us and International reaction
Despite the American sanctions on Iran, America supports this port because through this America can help in the economic development of Afghanistan which is in its favour.
It also provides a non-China alternative for Central Asia and Gulf countries.
Russia has also shown interest in connecting Chabhar with INSTC because through this, along with controlling China’s BRI, an organization of India, Iran and Russia will also be formed.
Conclusion
Chabahar can prove to be not just a port but also a geopolitical anchor of India in West Asia.
Moreover, this project will help in countering the growing influence of China in South Asia.
In 2016, when Union Transport Minister Nitin Gadkari was signing this project in Iran, he had said that the distance between Chabahar Port and Kandla Port is less than the distance between Delhi and Mumbai.
India-Iran Chabahar Port deal is more than a commercial transaction, it is a strategic move to further China’s expanding projects and influence in the region it dominates.