New Delhi: India has taken a big step to increase its influence in Central Asia. India has occupied Iran’s Chabahar port for 10 years. For this, India signed an agreement with Iran on Monday. Gaining control over the operations of Chabahar-based Shahid Beheshti Port Terminal will help India increase trade with Central Asia. This step of India has shocked three countries at once. Taking control of the Chabahar port has created an uproar in Pakistan, China and the US. America has also threatened to ban it. While Pakistan and China are still silent.
Annoyed by the agreement between India and Iran, the US said it is likely to impose sanctions on any country that does business with Iran. This step of India is being considered as a jaw-dropping response to China and Pakistan. This is because the sea route distance between Gwadar port developed by China and Chabahar port now operated by India is only 172 km and there are many countries who want to use Chabahar port for their business.
How is this a setback for China-Pakistan?
India’s occupation of Chabahar port is nothing less than a shock to Pakistan and China. China is building Gwadar Port in Pakistan, which is only 172 kilometers by sea from Chabahar Port. While there is a distance of about 400 km between these two ports by road. As China wants to establish its dominance in the region by building the Gwadar port in Pakistan, it is very beneficial for India to control the Chabahar port in Iran. On the one hand, this will end India’s dependence on Pakistan for trade, on the other hand, India will be able to retaliate to the Pakistan-China alliance.
How much India benefits from Chabahar port?
India’s deal with Iran is strategically very important. With the control of this port, India’s route to Central Asia will be direct and easy bypassing Pakistan. The agreement with Iran will boost regional engagement and India’s ties with Afghanistan, Central Asia and Eurasia. This is the first time that India is handling a foreign port. By taking this port under its control, India has given a jaw-dropping response to Pakistan’s Gwadar Port and China’s Belt and Road Initiative. China wants to reach Central Asia from Pakistan’s Gwadar port. But now India will face China’s Belt and Road Initiative through the Chabahar Port and the port will serve as an important connectivity link for India to Afghanistan, Central Asia and the wider Eurasian region. The port will be an alternative route to the traditional Silk Road as a transit trade hub between India, Iran and Afghanistan. The port will open trade and investment opportunities for India and boost India’s economic growth.
What did America threaten?
The US said any country that struck a trade deal with Iran would face the potential threat of sanctions. US State Department Deputy Spokesman Vedant Patel said at a press conference, “We are aware of reports that Iran and India have signed an agreement regarding the Chabahar port. I would like the Government of India to talk about its foreign policy objectives with respect to Chabahar Port and its bilateral relations with Iran. You’ve heard us say in many instances that any entity, any individual that is considering a trade deal with Iran, should be aware of the potential risks and sanctions.
Pakistan and China are still silent
Although Pakistan and China are silent on this step of India, they must have been irritated. As China wants to develop Central Asia with a gun on Pakistan’s shoulder, India’s move must have given it a big shock. Now China will not be able to monopolize this area, as now India will also be present at a short distance from Gwadar port, which will give it tough competition in this area. Anyway, there are many countries in Central Asia that are willing to use Chabahar port for trade and business.
Where is this port, how much will be invested?
Actually, Chabahar port is located in Sistan-Baluchistan province on the southern coast of Iran. India and Iran are jointly developing this port. The agreement was signed by India Ports Global Limited (IPGL) and Iran’s Ports and Maritime Organization in the presence of Minister for Ports, Shipping and Waterways Sarbananda Sonowal. IPGL will invest around $120 million while $250 million will be raised as a loan. This is the first time that India will take over the management of a port located abroad.
Why is India insisting?
India is emphasizing on the Chabahar Port Project to enhance regional trade connectivity, especially with Afghanistan. The port has been introduced as a major hub of the ‘International North-South Transport Corridor’ (INSTC) project. The INSTC project is a 7,200 km long multi-level transport project to transport goods between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe. Underlining India’s importance on connectivity projects with Iran, the Ministry of External Affairs (MEA) allocated Rs 100 crore for Chabahar Port for 2024-25.
Tags: chabahar, China news, Iran
First published: May 14, 2024, 13:46 IST