News Highlight
India pushed for the Chabahar port and welcomed the expansion of the Shanghai Cooperation Organisation (SCO) during the SCO Foreign Ministers’ meeting.
Key takeaways.
- India welcomed the expansion of the Shanghai Cooperation Organisation (SCO) to include Iran.
- While India pushed for the port to be a conduit for trade to central Asia, Pakistan promoted the China ÂPakistan Economic Corridor for transÂregional marketing.
India-Iran relations: Timeline
The Chabahar Port
- The Port is located in Sistan and Baluchestan provinces in the southeastern part of Iran, on the Gulf of Oman.
- In 2018, India took over the operations of the port.
- It was being operated by India Ports Global Private Limited (IPGPL).
- While Iran and India are signatories to the port development project, a second agreement on connectivity was also signed by Iran, India and Afghanistan.
- It has provided sea access to the landlocked countries of the region.
Reasons why Chabahar port is important for India:
- India can bypass Pakistan:
- The port is the fact that India can bypass Pakistan in transporting goods to Afghanistan and other central Asian countries.
- The port will boost India’s access to Iran, the key gateway to the International North-South Transport Corridor that has sea, rail, and road routes between India, Russia, Iran, Europe and Central Asia.
- Countering the Chinese presence:
- The port will benefit India in countering the Chinese presence in the Arabian Sea, which China is trying to ensure by helping Pakistan develop the Gwadar port.
- Gwadar port is less than 400 km from Chabahar by road and 100 km by sea.
- Military ally with Iran:
- With India’s Chabahar port being developed and operated, Iran has also become a military ally to India.
- Chabahar could be used in case China decides to flex its navy muscles by stationing ships in Gwadar port.
- Economic benefits:
- With Chabahar port becoming functional, there will be a drop in the oil cost for India and a considerable decline.
- For Iran and India, this port will reduce dependency on the Suez Canal and transportation time.
- Humanitarian operations:
- From a diplomatic perspective, Chabahar port could be used as a point from where humanitarian operations could be coordinated.
- Chabahar port will establish politically sustainable connectivity between India and Afghanistan.
Challenges associated with the port development
- The US sanctions:
- Although India’s development of the Chabahar Port until now has been exempted from US sanctions, the possibility of its withdrawal shortly can be a significant hindrance for India.
- It is because the tensions between the USA and Iran over Iran’s nuclear policy and enrichment programme and the imposition of sanctions are yet to be resolved.
- The Chinese factor:
- The growth of ports in the area also reflects India and China’s rivalry for dominance in the region.
- As part of its expansive China Pakistan Economic Corridor (CPEC) project under the Belt and Road Initiative, China has begun constructing the rival Gwadar port in Pakistan (BRI).
- The Taliban issue:
- Even after avoiding Pakistan, numerous logistical issues may still hamper trade between India and Afghanistan.
- It is because the Taliban controls most of the area around the Delaram highway.
India’s developmental project in Iran
- Chabahar-Zahedan railway project:
- It is a collaboration between the Governments of India and Iran.
- It is to provide faster connectivity from the Chabahar Port in Iran to Afghanistan and further to Central Asia.
- It will bolster the connectivity by road from the Chabahar port to Afghanistan.
- Farzad b gas field:
- Farzad B is a gas and condensate field located within the Farsi block in the Persian Gulf, offshore Iran.
Content Source: The Hindu
Pic Courtesy: freepik