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19th May 2025 (13 Topics)

Strategic Shift in India’s Port Policy

Context

India’s maritime strategy is shifting from a domestic focus to establishing a global presence in port development, beginning with Chabahar Port in Iran and expanding to Africa (Tanzania) and neighbouring countries like Myanmar and Sri Lanka. This marks a strategic move to enhance trade access, regional influence, and global connectivity.

Why Chabahar Port matters?

Chabahar port in southeastern Iran, developed and operated by India, is a strategic asset for multiple reasons:

  • Gateway to Central Asia and Afghanistan: It provides India an alternative route to Afghanistan, bypassing Pakistan, and opens up trade corridors to Central Asia through the International North-South Transport Corridor (INSTC).
  • Geopolitical leverage: It strengthens India’s presence in the western Indian Ocean, countering China's influence through Gwadar Port (Pakistan).
  • Trade hub in the making: Operated by IPGL at the Shahid Beheshti Terminal, container traffic at Chabahar jumped from just 9,126 TEUs in FY23 to 64,245 TEUs by January FY25, and is projected to reach 75,000 TEUs by the end of FY25, with full capacity of 100,000 TEUs by FY26.

India’s expanding focus areas:

  • Tanzania: After Chabahar, India is now eyeing Africa’s east coast, especially Tanzania, for port-related ventures. The aim is to support Indian trade, improve connectivity, and balance China’s deep influence in African infrastructure.
    • Tanzania’s main ports — Dar es Salaam, Mtwara, Tanga, along with minor ports in Zanzibar and Pemba islands — are strategically located on the Indian Ocean.
  • Myanmar – Sittwe Port: Indian Ports Global Ltd (IPGL) is operating the Sittwe port, developed under the Kaladan Multimodal Transit Transport Project. It connects India’s Northeast to Myanmar and the Bay of Bengal, and will eventually link to Thailand and ASEAN trade routes. It helps India counterbalance China’s activities in the region and supports Act East Policy.
  • Sri Lanka – Kankesanthurai Port: Indian Ports Global Ltd (IPGL) is helping to develop and operate Kankesanthurai (KKS) port in northern Sri Lanka. A Nagapattinam–KKS ferry service is also planned to boost people-to-people ties and revive old maritime links.

Significance of India’s port expansion

India’s port expansion is not just about logistics — it serves a deeper strategic vision:

  • Countering China’s Maritime Silk Road: Through projects like Gwadar (Pakistan), Hambantota (Sri Lanka), and multiple African ports, China is increasing its footprint. India is presenting a non-coercive, development-driven alternative.
  • Regional connectivity and soft power: Through joint ventures and MoUs, India promotes a collaborative approach to infrastructure.
  • Economic diplomacy: Ports are being used to unlock trade potential with regions like Africa, Central Asia, and ASEAN.
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