Chabahar Port Deal: India and Iran recently signed a 10-year agreement for the management of Chabahar port. This deal is going to prove to be an important milestone in India’s regional connectivity ambitions. Chabahar port, located on the southeastern coast of Makran, Iran, is of great strategic importance to India. It serves as an important medium for trade with Iran, Central Asia and Russia.
Moreover, the port plays a key role in the operation of the International North-South Transport Corridor (INSTC). However, India’s efforts to develop the Chabahar port did not go unnoticed by the United States. The US has long imposed tough sanctions against Iran. Just hours after the Chabahar deal was signed, the US issued a stern warning, stressing the “potential risk of sanctions” for anyone involved in business transactions with Tehran.
America did not pay attention to this before threatening
The Chabahar port project is not only an economic opportunity but also a strategic necessity to diversify trade routes and reduce dependence on enemy corridors. By bypassing the ports of Karachi and Gwadar in Pakistan, India can open new avenues of trade with Central Asia and Russia, strengthening its economic position.
Despite the challenges posed by US sanctions against Iran, the INSTC has been operational since 2018-19, facilitating small shipments even amid geopolitical adversities. However, to minimise the risk of disruption posed by sanctions, the Indian government must devise effective strategies to protect its companies operating in Chabahar and the INSTC.
The United States should support India’s involvement with the Chabahar port and INSTC, as it can help counter Chinese hegemony in Central Asia and Iran.
Chabahar port challenges China
By facilitating cooperation with Iran, the INSTC not only strengthens India’s energy security but also serves as a bulwark against Chinese dominance in the region. Moreover, the possibility of Chinese entry into the Chabahar port is a strategic challenge, potentially undermining India’s interests and strengthening Chinese influence in the region.
It is worth noting here that both Chabahar port and Gwadar were initially part of the original plan of the China-Pakistan Economic Corridor (CPEC). In such a situation, by strengthening cooperation with Iran by including Chabahar in INSTC, India can effectively counter Chinese dominance on the Makran coast and gradually prevent Iran from falling into complete dependence on China.
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