India Takes Over Management of Iran's Chabahar Port

India has signed a 10-year deal to manage Iran's Chabahar Port. The US warns of potential sanctions risk, but India says it is aware of the sanctions and is going forward with the deal.

Gobind Arora
Published on: 14 May 2024 9:36 AM GMT
Chabahar port inaugurated by Iranian Prez in strategic breakthrough
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Chabahar

India and Iran have signed a 10-year agreement that will see India take over the management of Iran's Chabahar Port. This is a significant development for both countries, as it will give India a strategic foothold in the Persian Gulf and boost trade between the two nations.

The Chabahar Port is located on the southeastern coast of Iran, near the border with Pakistan. It is the only Iranian port that is not subject to US sanctions. This is because the port is seen as being critical for delivering humanitarian aid to Afghanistan.

India has been investing in the development of Chabahar Port for several years. In 2016, India and Iran signed a trilateral agreement with Afghanistan to develop a trade corridor that would connect Central Asia with India through Chabahar Port.

The development of Chabahar Port is seen as a way to bypass Pakistan, which has long been a rival of India. Pakistan has blocked overland trade routes between India and Afghanistan. Chabahar Port would provide India with an alternative route to access Afghanistan and Central Asia.

The US has warned India that there is a potential risk of sanctions for businesses that deal with Iran. However, India has said that it is aware of the sanctions and is going forward with the deal. India argues that the development of Chabahar Port is exempt from US sanctions because it is for humanitarian purposes.

The US has imposed sanctions on Iran since 1979. The sanctions were tightened in 2018 after the US withdrew from the Iran nuclear deal. The sanctions have crippled the Iranian economy and made it difficult for Iran to trade with other countries.

India is Iran's second-largest trading partner after China. India imports oil from Iran and exports wheat and rice to Iran. The development of Chabahar Port is expected to boost trade between the two countries.

The agreement to manage Chabahar Port is a major win for India. It will give India a strategic foothold in the Persian Gulf and boost trade between India and Iran. The development of Chabahar Port is also seen as a way to bypass Pakistan and counter China's growing influence in the region.

Gobind Arora

Gobind Arora

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