India to sign 10-year Chabahar port pact with Iran
India is set to sign a significant deal with Iran to manage Chabahar Port for the next decade, a move with far-reaching implications for the region, according to Times of India. This diplomatic gesture comes amidst a busy election period and aims to strengthen India's connectivity to Afghanistan, Central Asia, and the larger Eurasian region, bypassing Pakistan's Gwadar port and China's Belt and Road Initiative.
India’s Chabahar port pact to counter Pakistan, China: India is poised to enter into an agreement with Iran for the management of Chabahar Port for the next decade. This move, taking place amidst a busy election season, is seen as a significant geopolitical outreach to Iran with major regional implications.
The shipping minister Sarbananda Sonowal is scheduled to visit Iran on Monday for the signing ceremony.
This marks the first instance of India taking over the management of an overseas port.
Chabahar Port is viewed as India's crucial connectivity link to Afghanistan, Central Asia, and the broader Eurasian region, serving as a counterbalance to Pakistan's Gwadar port and China's Belt and Road Initiative. Plans are in place to connect Chabahar with the International North South Transport Corridor (INSTC), which links India with Russia via Iran, enabling India to bypass Pakistan and access Afghanistan and ultimately Central Asia.
In April, the MEA approved a proposal by India Ports Global to assume operations at Myanmar's Sittwe Port in the Bay of Bengal. Experts noted that Sonowal's travel during a critical poll campaign underscores the significance of the agreement, which has been in the works for several years.
The pact will allow India to operate the port, the expansion of which it has financed. The timing of the visit is also noteworthy, as it occurs in the midst of the West Asia crisis, which has affected key trade routes.
Chabahar featured prominently in discussions between Prime Minister Narendra Modi and the Iranian President last year at the BRICS summit in South Africa in August, and later in November, when they spoke over the phone regarding the Gaza crisis.
A pact on Chabahar was signed in 2016 during Modi's visit to Iran. In 2018, when Hassan Rouhani, then Iran president, visited India, the issue of expanding India's role at the port was a key topic of discussion. It also arose when foreign minister S Jaishankar visited Tehran in January 2024.
The new long-term agreement aims to replace the original contract. The new agreement will have a validity of 10 years and will be automatically extended. The original pact only covers operations at the Shahid Beheshti terminal of Chabahar Port and is renewed annually.
In May 2016, India signed a tripartite agreement with Iran and Afghanistan to develop the Shahid Beheshti terminal. Resource-rich but landlocked Central Asian states such as Kazakhstan and Uzbekistan have expressed keen interest in utilizing Chabahar to access the Indian Ocean Region and the Indian market. The port will also be beneficial for Indian traders and investors interested in Central Asia.
Pakistan has been attempting to persuade the Central Asian states to use Karachi port for access to the Indian Ocean Region. However, India has been indicating to the Central Asian countries that Chabahar will be a more attractive proposition. Armenia is also eager to connect to the Chabahar port through the INSTC.
