CHABAHAR PORT

Chabahar port is located in southeastern Iran (Sistan and Baluchistan province). It is the only deep-sea port in Iran and is located in the Gulf of Oman. India, Iran, and Afghanistan signed the Chabahar agreement in 2016 to establish this port as the International Transport and Transit Corridor. It has enabled India to access landlocked Afghanistan, bypassing Pakistan, which has blocked any cargo through it. This port also enables India to access Central Asian countries such as Kazakhstan, Uzbekistan, and others. Due to India's diplomatic efforts, the project was also spared any sanctions by the US when it withdrew from the JCPOA (Joint Comprehensive Plan Of Action) signed between Iran and P5 countries and the EU. Chabahar Port is also of strategic importance to India as it serves as a counterweight to Chinese investments in Gwadar Port, Pakistan, as a part of Belt and Road Initiative (BRI).

India and Iran have long-standing diplomatic ties. Since the early 2000s, India and Iran have been working on a roadmap to develop the Chabahar Port. China registered its presence in the region when it signed an agreement with Pakistan to develop massive infrastructure projects across Pakistan as part of the China Pakistan Economic Corridor (CPEC). CPEC is a crown jewel of China's ambitious One Belt One Road (OBOR) initiative. Gwadar port development is the main part of the CPEC. This was seen as an attempt by China to encircle India's investments in the Indian Ocean Region (IOR). India had to act swiftly to counter any malicious attempt that would threaten its shipment through the IOR.

In April 2016, India, Iran, and Afghanistan signed a trilateral agreement to develop Chabahar Port as an International Transport and Transit Corridor. It includes the construction of a rail line from Chabahar to Zahedan, which will be further linked to Zaranj- Delaram Highway. The Zaranj-Delaram Highway is a crucial road linkage between Afghanistan and Iran. The 215-kilometre highway was built with India's assistance. In March 2023, India sent around twenty thousand metric tons of wheat as assistance to conflict-stricken Afghanistan through this alternative route.

• Humanitarian Assistance and Disaster Relief (HADR): India is fast emerging as a first responder in HADR. India has provided relief to Afghanistan by exporting grains and other essentials through Chabahar Port.
• Sea-based trade route to Central Asia: Beyond Afghanistan, India can explore trade routes to resource rich Central Asian countries and increase trade, which is currently stagnating at around $ 2-3 billion.
• Strategically Important: Chabahar Port is of significant strategic importance because Chinese-controlled Gwadar Port in Pakistan is seen as a tool for the 'strategic encirclement' policy of China. India's investments in Iran can serve as a counterbalance to China's presence in the Indian Ocean Region (IOR).
• Strengthening ties with Iran: Since it is a deep-sea port, Iran is looking to develop the Chabahar Port as a transit hub because of its ability to handle big cargo ships. This will end congestion at the Bandar Abbas Port, which isn’t equipped to handle large cargo. Hence, the Chabahar Port project will be a major boost to the economy of Iran and strengthen India-Iran relations.
• INSTC and Multimodal connectivity: Chabahar Port is a key transit hub in the ambitious plan to link the Indian Ocean to the Caspian Sea and Russia, and Northern Europe. (see the box for more information)