long-term agreement signals India's commitment to Chabahar's strategic importance amid geopolitical shifts

India and Iran solidified their partnership on Monday with the signing of a substantial 10-year agreement aimed at bolstering Indian operations at the Chabahar port. The accord, inked in Tehran and witnessed by Indian ports and shipping minister Sarbananda Sonowal alongside his Iranian counterpart Mehrdad Bazrpash, signifies a pivotal moment in the strategic collaboration between the two nations.

Sonowal's visit to Tehran, strategically timed amid India's general elections, underscores New Delhi's unwavering commitment to the Chabahar port and its pivotal role in broader connectivity initiatives linking India, Afghanistan, and Central Asian nations. With the agreement now formalized, India's sustained involvement in Chabahar is poised to undergo significant expansion, setting the stage for enhanced regional trade and economic cooperation.

The meticulously negotiated agreement, spanning a decade with provisions for extension, marks the culmination of three years of deliberations between the two nations. Overcoming initial obstacles, particularly related to arbitration jurisdiction, both parties have successfully navigated complex negotiations to establish a robust framework for India's extended engagement at Chabahar. This agreement supersedes the preliminary pact of 2016 and heralds a new era of cooperation in advancing Chabahar's infrastructure and operational capabilities.

Under the terms of the agreement, India Ports Global Chabahar Free Zone (IPGCFZ), a subsidiary of India Global Ports Limited (IGPL), will undertake substantial investments totaling approximately $120 million to augment the Shahid Beheshti terminal's infrastructure. This investment will facilitate the acquisition of essential equipment, including mobile harbor cranes, rail-mounted quay cranes, and other critical assets, aimed at enhancing the port's operational efficiency.

Furthermore, India has extended a line of credit amounting to $250 million to finance mutually identified projects geared towards improving Chabahar's infrastructure. This financial commitment underscores India's dedication to fostering regional connectivity and underscores the port's pivotal role in facilitating trade and commerce across borders.

Sonowal's discussions with Iranian officials underscored a shared vision of positioning Chabahar as a regional connectivity hub, linking India to Afghanistan, Central Asia, and Eurasia. This strategic alignment reflects the broader aspirations of both nations to leverage Chabahar's geostrategic location to unlock new avenues for economic cooperation and development.

As India's investment in Chabahar gains momentum, the port's integration with a special free trade zone, coupled with India's incentives for entrepreneurs, is poised to attract increased participation from Indian businesses. Additionally, the establishment of regular ship calls between Chabahar and Indian ports promises to enhance trade predictability and stability, further bolstering the region's economic landscape.

In essence, the signing of this long-term agreement not only reinforces India's commitment to Chabahar's development but also underscores the port's significance as a linchpin of regional connectivity and economic prosperity. As geopolitical dynamics continue to evolve, India and Iran's enduring partnership at Chabahar emerges as a beacon of stability and cooperation in a rapidly changing world. (Image courtesy : Wikipedia.org)

Yashvi Tiwari

Iran