Introduction
Chabahar Port is located in present-day Sistan-Baluchestan in the Gulf of Oman, comprising two distinct sections – Shahid Kalantari and Shahid Beheshti Ports.[i] The Port acts as an access point for India to reach Central Asian and Iranian economies. The Port counters China’s Belt and Road Initiative and empowers the International North-South Trade Corridor (INSTC), which aims to establish connections between major cities such as Mumbai, the financial hub of India, and Baku, the capital of Azerbaijan.[ii]
India’s Interest and Geopolitical Importance
New Delhi has been given operational control of the Chabahar port after its investment in the development and expansion of the port facilities. The port is easily accessible by Kandla Port, which is situated in Gujarat, at 550 nautical miles from Iran, while the gap between Chabahar and Mumbai measures 786 nautical miles.[iii] IPGL (Indian Ports Global Limited) and the Port & Maritime Organisation of Iran witnessed a long-term treaty on May 13, 2024, for the operational control of the Port. The previous arrangement, which supported Indian operations at the Shahid Beheshti Terminal and was subject to yearly renewal, has been replaced by this new one.[iv]
Chabahar as a Counter to China
The Belt and Road initiative originated from the expansionist vision of China’s President, Xi Jinping, aiming to establish land connections between East Asia and European markets. The initiative does not limit itself to Central Asia, it tries to encompass regions such as Latin America, Africa, and Europe, trying to increase the sphere of influence of Beijing. Analysts claim the China-Pakistan Economic Corridor (CPEC) to be one of the most financially draining projects to date, estimated at $62 billion, which allows China to reach out to Pakistan’s Gwadar Port. China has reportedly invested approximately $1 trillion in similar initiatives around the globe, attempting towards Xi’s vision.[v] It is to counter China’s economic dominance in South and Central Asia, India participates in the International North-South Trade Corridor and tries to strengthen multilateral trade agreements.
United States of America and Iranian sanctions
United States Department Deputy Speaker, Vedant Patel warns companies and countries against trade with Iran to avoid potential sanctions. Foreign Minister Subrahmanyam Jaishankar tried downplaying the tension, by stating that New Delhi would “communicate the benefits” of the deal to the US and encourage countries not to “take a narrow view of it”.[vi] India’s aim for investing is not limited to suffice its economic interest, it is rather to curtail the growing influence of China in the region and counter the economic trade of Gwadar Port funded by the Chinese agenda.[vii]
Conclusion
It has been said that “all roads lead to Beijing,” highlighting the impact of China’s Belt and Road Initiative, which has expanded to over 150 countries with investments totaling $92.4 billion since 2013.[viii] In this context, it is crucial for countries to maintain their sovereignty and independent markets, free from foreign influence, and to focus on strengthening bilateral agreements. The development of Chabahar Port appears to be a step in this direction.
Endnotes:
[i] Lawal, Shola. 2023. “Does India risk US sanctions over Iran’s Chabahar Port deal?” Aljazeera, May 17, 2023. https://www.aljazeera.com/news/2024/5/17/does-india-risk-us-sanctions-over-irans-chabahar-port-deal#:~:text=Located%20in%20southeastern%20Sistan%2DBaluchestan,Shahid%20Kalantari%20and%20Shahid%20Beheshti.
[ii] Ibid
[iii] TOI Business Desk. 2024. “Explained: Why is Chabahar Port in Iran strategically important for India? Check how new pact helps counter Pakistan, China – top points.” Times of India, May 15, 2024. https://timesofindia.indiatimes.com/business/india-business/explained-why-is-chabahar-port-in-iran-strategically-important-for-india-check-how-new-pact-helps-counter-pakistan-china/photostory/110092626.cms.
[iv] NDTV World. 2024. “Chabahar Port A “Landmark Deal” For India-Iran Economic Relations: Envoy.” May 17, 2024. https://www.ndtv.com/india-news/chabahar-port-a-landmark-deal-for-india-iran-economic-relations-envoy-5684587https://www.ndtv.com/india-news/chabahar-port-a-landmark-deal-for-india-iran-economic-relations-envoy-5684587.
[v] Maizland, Lindsay, and Andrew Chatzky. 2023. “China’s Massive Belt and Road Initiative.” Council on Foreign Relations, February 2, 2023. https://www.cfr.org/backgrounder/chinas-massive-belt-and-road-initiative.
[vi] Krishnan, Murali. 2024. “Is India taking a risk with Iran Chabahar port deal?” DW Network, May 15, 2024. https://www.dw.com/en/is-india-taking-a-risk-with-iran-chabahar-port-deal/a-69089809.
[vii] Ibid
[viii] Gong, Xue. 2023. “The Belt and Road Initiative Is Still China’s “Gala” but Without as Much Luster.” Carnegie Endowment for International Peace, March 3, 2023. https://carnegieendowment.org/posts/2023/03/the-belt-and-road-initiative-is-still-chinas-gala-but-without-as-much-luster?lang=en.
By: Ansh Patel, Research Intern, CS3, USI