WILL CHABAHAR BE A LINCHPIN FOR INDIA AND IRAN “INDO-IRAN COLLABORATION ON CHABAHAR PORT: REGIONAL AND GLOBAL CHALLENGES”

Abstract

The Chabahar Port, situated in the Iranian province of Sistan and Baluchistan, has emerged as a prominent subject in regional and international political discussions. India has collaborated with Iran for the last two decades to establish and enhance this port. Through this port, India aims to alleviate Pakistan's dependency on trade routes while simultaneously enhancing trade links with South Asian countries, as well as Central Asia and Western countries. India aims to enhance its maritime commerce by utilizing Afghanistan as a gateway to Central Asia and extending its reach to Europe via Turkey and Iran. Iran possesses the Bandar Abbas harbour; nonetheless, it is unsuitable for accommodating huge ships due to the presence of shallow water.

Chabahar holds significant importance due to its status as a deep-water port. The worldwide significance of this port is further enhanced by its proximity to two neighbouring ports, namely the Strait of Hormuz and Gwadar Port. By activating this port, a novel global trade route will be constructed, linking numerous countries across three continents. This port is intricately linked to the progress and advancement of Iran, Afghanistan, and India. India is allocating a substantial amount of funds for the development of this port. Notwithstanding the challenges and global limitations, the progress of this project is continuing. In May 2024, Iran and India entered into a ten-year deal. The project's implementing agency, Indian Ports Global Limited (IPGL), would spend over 120 million US dollars to equip and run the port throughout the contract's lifespan. For initiatives that both countries agree upon to enhance the port's infrastructure, India has opened a loan window in the amount of 250 million US Dollars.