India Signs A 10-Year Deal To Operate Iran’s Chabahar Port

India Signs A 10-Year Deal To Operate Iran’s Chabahar Port

On Monday, India and Iran inked a 10-year deal for operating the Chabahar Port, vital for India’s trade with central Asia and Europe. India Port Global Limited (IPGL) and Iran’s Ports and Maritime Organisation (PMO) signed the agreement.

Located on the southwest coast of Iran, Chabahar is an essential link in the International North-South Transport Corridor (INSTC) and provides convenient access to the west coast of India.

After sanctions against Iran hampered work and resulted in short-term agreements, a preliminary deal was signed in 2016.

India’s involvement in Chabahar goes beyond trade; it also advances regional development objectives and humanitarian assistance. A ten-person delegation under the leadership of Union Shipping Minister Sarbananda Sonowal completed the transaction in Tehran. The exemption from the model code of conduct for the ongoing Lok Sabha elections made this visit possible.

The purpose of this agreement is to improve connectivity and draw in larger investments. In order to promote trade between India and the countries of Central Asia, Chabahar is essential to the INSTC’s eastern route. Experts point out that it has several strategic advantages, such as increased energy security, access to new markets, and diversification of import routes.