Sansad TV: In Depth: Geopolitical significance of Chabahar Port | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• India and Iran recently entered a decade-long agreement to manage a terminal at the strategically vital Chabahar port in Iran. This move is poised to enhance regional connectivity and trade relations significantly.
• This partnership marks the first instance of India assuming control of a foreign port, promising substantial benefits for trade between India and Iran.

Chabahar Port

• Located on Iran's Gulf of Oman, Chabahar port stands as the country's sole oceanic port, granting access to the energy-rich southern coast of the Persian Gulf nations.
• Its foremost significance lies in enabling India to circumvent Pakistan when transporting goods to Afghanistan, thereby bolstering India's access to Iran—a pivotal gateway to the International North-South Transport Corridor, facilitating sea, rail, and road connections among India, Russia, Iran, Europe, and Central Asia.
• By developing and managing Chabahar port, India gains a strategic advantage in countering Chinese influence in the Arabian Sea, particularly in contrast to China's efforts to bolster the Gwadar port in Pakistan, situated at a close proximity to Chabahar.
• Operationalization of Chabahar port not only enhances India's trade prospects but also establishes a robust military alliance with Iran, potentially in response to China's naval maneuvers in the Indian Ocean, Persian Gulf, and Middle East.
• Upon Chabahar's functional readiness, India anticipates a notable surge in imports such as iron ore, sugar, rice, and a reduction in oil import costs, especially following increased crude oil purchases from Iran post the lifting of the West's ban on Iran.
• The port plays a crucial role in fostering sustainable political connectivity between India and Afghanistan, paving the way for stronger economic ties between the two nations. Moreover, its diplomatic significance extends to potentially serving as a coordination point for humanitarian operations.

Significance of the Port for India

• Chabahar Port holds particular importance for India due to its positioning as Iran's sole oceanic port accessible from India's western coast, offering an alternative route to Afghanistan and Central Asia, bypassing Pakistan's denial of transit facilities.
• By leveraging Chabahar, India can forge new avenues of engagement with the region, fostering mutual prosperity and mitigating the hindrances faced in commerce with Afghanistan and Central Asia via Pakistan.

Geo-Political Importance

• Chabahar's geopolitical relevance escalates as it serves as a gateway to the International North-South Transport Corridor (INSTC), bolstering India's regional presence and strategic interests.
• India's pursuit of the Chabahar project underscores its strategic intent to counterbalance escalating Chinese involvement in the Arabian Sea, particularly through initiatives like the Gwadar port in Pakistan.
• The prospect of expanding military ties between India and Iran could offer significant advantages in countering Chinese naval activities in the Indian Ocean.

Economic Importance

• Chabahar port is expected to substantially reduce import costs for key products like iron ore, oil, sugar, and rice to India, with studies indicating a 30% cost advantage compared to routes via the Mediterranean-Suez region.
• Once fully operational, Chabahar will revitalize economic relations between India and Afghanistan, facilitating the development of infrastructure like the Zaranj-Delaram highway and potential rail links with Iran.
• India's plans encompass the establishment of various industries, including aluminum and urea plants, within the Chabahar Economic Zone, promoting industrial growth and economic diversification.

Diplomatic Importance

• Chabahar port presents India with an avenue to conduct humanitarian missions in Afghanistan and the Horn of Africa region, leveraging infrastructure like the Zaranj-Delaram highway to access key Afghan cities.
• Transport Minister Shri Nitin Gadkari's characterization of the port as 'a gateway to golden opportunities' underscores its potential as a diplomatic and strategic asset for India.

• Rapid operationalization of Chabahar port and streamlining access routes to Afghanistan are paramount for maximizing its potential benefits.
• Adherence to timelines and fulfillment of commitments by New Delhi will be crucial in establishing the port as a pivotal regional hub for transit trade, steel, and petrochemicals.
• Encouraging greater utilization of the route by Afghan companies will be essential for enhancing connectivity and economic activity in the region.
• India's proactive engagement in the intricate connectivity network of the region through Chabahar necessitates sustained and nuanced diplomacy to navigate competing interests effectively.