IRAN-INDIA

Chabahar, situated at the entrance of the Gulf of Oman, represents Iran's inaugural deepwater port, positioning the nation on the global maritime trade network. Positioned west of Iran's border with Pakistan, it is approximately equidistant from Gwadar, a rival port established by China in Pakistan to the east of the border.

The strategic significance of Chabahar extends to both Iran and India. For Tehran, it holds the potential to mitigate the impact of Western sanctions, while for New Delhi, it provides an alternative trade route, circumventing Pakistan, which restricts India's land access to Afghanistan and Central Asia

• India's involvement in the port's development traces back to 2002 when Hassan Rouhani, then the National Security Advisor to President Syed Mohammad Khatami, engaged in discussions with his Indian counterpart, Brajesh Mishra.
• During President Khatami's subsequent visit to India the following year, a roadmap of strategic cooperation was signed by him and Prime Minister Atal Bihari Vajpayee.
• One of the pivotal projects outlined in this cooperation was the development of Chabahar. Following the partition and the emergence of a hostile Pakistan, India's land connections with Iran and Central Asia were severed. Despite this, the impact on India's closed economy was relatively minor during the four decades post-Independence.
• Close cooperation between India and Iran intensified when the Taliban assumed control of Afghanistan in 1996. Both nations opposed the Pakistan-created Sunni Islamist militia and supported the Northern Alliance led by Ahmed Shah Massoud. With the Pakistani block on land transit access to Afghanistan, India urgently sought an alternative route.
• While the most straightforward routes to Central Asia and Russia for India were through Pakistan and Afghanistan, the next viable option was through Iran, which shares borders with Central Asia and the Caspian Sea.
• Simultaneously pursuing access to Afghanistan and exploring the International North-South Transport Corridor (INSTC) to reach Russia and European territories, India increasingly valued the Chabahar project.
• The significance of the Chabahar project for India further intensified when China initiated the development of the Gwadar port in Pakistan as part of the Belt and Road Initiative (BRI).

• The development pace of the Chabahar port is subject to the dynamics of US-Iran relations, which have been steadily deteriorating and could worsen significantly if Trump returns to the White House early next year.
• The ongoing crisis in the Red Sea, stemming from the Israel-Hamas conflict in Gaza, has created a highly volatile and unpredictable situation in the entire region. Since November of last year, Yemen's Houthi militia, supported by Iran, has been disrupting commercial vessels in this major global shipping lane, leading to retaliatory actions by the US and the UK.
• The recent exchange of missile strikes between Iran and Pakistan targeting militant bases in each other's territories represents an unexpected escalation, with the full implications yet to unfold.
• India has expressed a zero-tolerance stance for terrorism, and the Houthi attacks on commercial vessels are deemed detrimental to its interests. However, following the Iranian cross-border strikes in Pakistan, India also acknowledged the need for countries to take actions in self-defense

Significance of Chahabar Port

Alternate Trade Route: Traditionally, India has heavily relied on transit routes through Pakistan for access to Afghanistan and Central Asia. The Chabahar Port presents an alternative pathway, circumventing Pakistan and decreasing India's dependence on its neighbor for trade with Afghanistan and beyond. This becomes particularly significant given the often-strained relations between India and Pakistan. Furthermore, the port's establishment will enhance India's connectivity to Iran, a pivotal gateway to the International North-South Transport Corridor, encompassing sea, rail, and road routes connecting India, Iran, Russia, Central Asia, and Europe.

Economic Advantages: The Chabahar Port provides India with an entry point to the resource-rich and economically dynamic Central Asia. It has the potential to substantially augment India's trade and investment prospects in these markets, fostering economic growth and job creation domestically.

Humanitarian Support: Chabahar Port can play a pivotal role as a vital entry point for humanitarian aid and reconstruction initiatives in Afghanistan. India can utilize the port to deliver assistance, support infrastructure development, and contribute to the stability of the region.

Strategic Influence: Through the development and operation of the Chabahar Port, India can strengthen its strategic influence in the Indian Ocean region, bolstering its geopolitical position

• India has traditionally been one of the major importers of Iranian crude oil. The reimposition of sanctions on Iran by the U.S. affected India's energy security, as it had to seek alternative sources of oil
• India has maintained a delicate diplomatic balancing act between its strategic alliance with the United States and its historical ties with Iran. It has sought to engage with both nations while expressing its commitment to upholding its national interests
• Sanctions complicated the financial transactions between India and Iran. Payment mechanisms, including the use of Indian Rupees for trade, were explored to bypass international banking restrictions
• India has invested in the development of the Chabahar Port in Iran, which provides a strategic route for India to access Afghanistan and Central Asia. This project was of mutual interest to both countries and was not directly impacted by U.S. sanctions
• India, as a member of the international community, has generally supported diplomatic efforts to resolve the Iranian nuclear issue through negotiations and dialogue