Union Minister Sarbananda Sonowal boarded a special Indian Air Force flight bound for Iran on Monday to witness the signing of a crucial agreement regarding the Chabahar port, according to reliable sources.
This agreement will grant India a long-term lease for the Chabahar port, strategically located on Iran’s coast along the Gulf of Oman. It serves as a significant step to establish a new trade route between South Asia and Central Asia via Iran, bypassing Pakistan’s Karachi and Gwadar ports.
The pact is poised to unlock fresh economic opportunities, offering an alternative transit route away from the congested Persian Gulf and the Strait of Hormuz.
The Chabahar Port Operations contract adds to India’s maritime accomplishments, following the launch of the Sittwe Port in Myanmar aimed at countering China’s expanding presence in the region. Minister Sonowal inaugurated the Sittwe port precisely a year ago in May 2023.
Iran’s Chabahar port is a linchpin of India’s connectivity initiatives, facilitating trade between India, Iran, Afghanistan, and Central Asia. India envisions transforming Chabahar into a transit hub under the International North-South Transport Corridor (INSTC), enhancing cargo movement between India and Central Asia.
INSTC is a multi-modal transportation route connecting the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran, eventually extending to northern Europe through Russia.
Earlier this year, External Affairs Minister S Jaishankar and Iran President Ebrahim Raisi deliberated on expediting the implementation of Iran-India agreements, including the Chabahar Port Development Plan, to address delays and strengthen bilateral cooperation. Jaishankar also expressed interest in forging a comprehensive and long-term cooperation agreement with Iran.