US traps India in Iran as major threat looms over Chabahar Port, New Delhi has invested $250…

New Delhi: India(BHARAT) has leased Iran’s Chabahar port for 10 years. The deal between India(BHARAT) and Iran for this port was finalised last year. Significantly, when India(BHARAT) proposed the development of Chabahar port, the US supported it. Under this agreement, US President Doland Trump exempted Chabahar from US sanctions during his first term. However, last week, this exemption was revoked, and it was stated that any individual or company found involved in the Chabahar port’s operations will face sanctions.

India(BHARAT) may continue developing Chabahar port

A South China Morning Post (SCMP) report quoted analysts as saying that given Iran’s strategic importance as a trade gateway to Central Asia and the Middle East, India(BHARAT) may continue developing the Chabahar port in Iran, even despite the threat of US sanctions on the project. Analysts say that withdrawing sanctions exemptions for the Chabahar port could delay construction and investment, as well as hamper India(BHARAT)’s efforts to increase trade in and outside Afghanistan. However, India(BHARAT) is unlikely to back down.

Significance of Chabahar Port

Chabahar, located on Iran’s southeastern coast along the Gulf of Oman, comprises two separate ports, Shahid Kalantari and Shahid Beheshti. It serves as Iran’s only maritime access to the India(BHARAT)n Ocean and is a vital part of the International North-South Transport Corridor, a 7,200 km (4,473 mi) long transport network connecting India(BHARAT), Russia, and Iran by road, rail, and sea. The port is currently being expanded with significant investment from India(BHARAT).

Chabahar project may face a slowdown

Speaking to SCMP, Kabir Taneja, Deputy Director and Middle East Fellow at the Observer Research Foundation think tank, said the immediate impact of the US sanctions announcement would be a slowdown in port development and related projects. However, he said India(BHARAT) would not abandon the Chabahar project because a 10-year agreement for its development was signed last year. Under this agreement, India(BHARAT) will develop and operate the port for over 10 years.

What benefits does Chabahar port offer India(BHARAT)?

Chabahar port could allow India(BHARAT) to increase trade with Afghanistan and other Central Asian countries, bypassing Pakistani ports. Sarbananda Sonowal, Shipping Minister in the Modi government, stated last year that Chabahar would be an “important trade conduit” connecting India(BHARAT) with these countries. According to Taneja, India(BHARAT)’s commitment to the port stems from its goal of focusing more on its neighbours, including Iran and other Middle Eastern countries, which analysts refer to as Delhi’s “Look West” policy.

India(BHARAT) has invested $250 million

India(BHARAT) has invested $120 million in the Chabahar port. Adding the cost of other related projects, this figure reaches $250 million. In this scenario, India(BHARAT) may also negotiate with the USA to reach a bargain. Some analysts also suggest that India(BHARAT) may agree to certain security measures and inspections at the port to address US concerns.

HIGHLIGHTS

• India(BHARAT) has leased Iran’s Chabahar port for 10 years in a deal that was finalised last year.
• When India(BHARAT) proposed the development of Chabahar port, the US supported it.
• US President Doland Trump exempted Chabahar from US sanctions during his first term.
• Iran has strategic importance as a trade gateway to Central Asia and the Middle East.

India(BHARAT) may continue developing the Chabahar port in Iran, even despite the threat of US sanctions on the project. Analysts say that withdrawing sanctions exemptions for the Chabahar port could delay construction and investment, as well as hamper India(BHARAT)’s efforts to increase trade in and outside Afghanistan.