7th February 2025 (13 Topics)
1
Feb
3
Feb
4
Feb
5
Feb
6
Feb
7
Feb
India’s Chabahar Port Project
Context
The Trump administration has issued a directive that may potentially remove the sanctions waiver granted to India, which allowed the country to continue its work on Iran’s Chabahar port. This move is part of the U.S.'s broader "maximum pressure" campaign against Iran.
About Chabahar Port
- Located in Iran, Chabahar port provides India access to Afghanistan and Central Asia, bypassing Pakistan.
- India signed a 10-year deal in 2024, investing USD 120 million in port development and a USD 250 million credit facility for related projects.
- India Ports Global Limited (IPGL) has managed the port since 2018.
- The deep water port is located on the Makran Coast of Iran's Sistan-Baluchistan province.
- Moreover, Chabahar is the only Iranian portwith direct access to the Indian Ocean.
- Chabahar connects Mumbai to the International North-South Transport Corridor (INSTC), reducing transport costs and improving trade.
- The port has handled over 90,000 TEUs of container traffic and 8.4 million metric tons of cargo since 2018.
- Impact of removal on waiver on India
- Development Work at Risk: Revocation of the sanctions waiver could hinder India’s development efforts at Chabahar.
- Trade Growth: Chabahar saw a 43% increase in vessel traffic and 34% rise in container traffic in FY 2024, proving its growing significance for India’s trade.
- Geopolitical Impact: India’s ties with Iran are key to its presence in Central Asia and Afghanistan. The sanctions could disrupt these strategic interests.
International North-South Transport Corridor (INSTC)
|
Courses
Study
Notes
Home
Resources
More
