Prime Minister Narendra Modi has hailed the signing of a 10-year agreement to operate Iran's strategic Chabahar port as a "significant milestone."
The deal, inked on May 13th, is seen as a game-changer for regional connectivity, bypassing Pakistan and offering a vital trade route to landlocked Afghanistan and Central Asia.
"This is not just about a port, this is about promoting regional connectivity, trade and commerce," asserted Modi during an interview.
He outlined India's vision of leveraging Chabahar alongside other initiatives like the International North-South Transport Corridor (INSTC) and the India-Middle East-Europe Economic Corridor.
The INSTC, a 7,200-kilometer network of sea, rail, and road routes, offers an alternative to the Suez Canal for transporting goods from India to Russia via Iran.
This strategic partnership with Iran unlocks access to the Caspian Sea and ultimately connects India with North Europe through Russia.
"Connectivity is paramount in today's globalised world," Modi stated.
He highlighted the keen interest of Central Asian leaders in utilising Chabahar for maritime access and trade links with India.
The agreement, signed between India Ports Global Limited (IPGL) and Iran's Port & Maritime Organisation, marks a significant shift from previous one-year renewals.
IPGL will invest roughly $120 million in developing the port, with an additional $250 million secured through debt financing.
This long-term commitment strengthens India's presence in the region. Chabahar has already proven its worth, having facilitated the dispatch of 20,000 tonnes of wheat aid to Afghanistan in 2023 and eco-friendly pesticides to Iran in 2021.
The Modi government has prioritised Chabahar since coming to power in 2014. A trilateral agreement with Iran and Afghanistan in 2016 laid the groundwork for this crucial connectivity project.
The Chabahar deal is a strategic win for India, fostering stronger ties with Iran and Afghanistan while establishing a vital trade route that bypasses Pakistan.
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