Strengthening India-Iran ...
India has always had strong maritime trade with countries of the Persian Gulf, including Iran. These strategic maritime corridors have also been the source of India’s energy security in the modern age, and Iran has played a vital role. The partition of India disrupted our land-based trade with Iran and the landlocked countries of Central Asia, the Caucasus, and Afghanistan. Maritime connectivity between India and Iran is the only viable option for restoring these ancient trading linkages. Iran’s strategic location also makes it ideally suited to facilitate India’s trade with many European and Asian countries. All of this underscores the importance of the Chabahar port project.
With the signature of the long-term Chabahar Contract, we have laid the foundations for India’s long-term involvement in the equipping and operation of the Chabahar port. The project, which is currently in its initial phase, aims to develop the port into a major regional transit hub. It includes the construction of new terminals, the installation of modern equipment, and the improvement of port infrastructure. We are confident that the long-term contract signed yesterday between India and Iran will have a multiplier effect on the viability and visibility of the Chabahar port. Over the coming years, we hope to see a multi-fold increase in cargo traffic being routed through Chabahar, especially transit trade between India and landlocked countries like Afghanistan and Central Asia.
Chabahar is not only the closest Iranian port to India but is also an excellent port from a nautical point of view. It can host large cargo ships and is accessible from the open sea, thus free from the congestion of the busy waterway of the Hormuz Strait. It is also ideally located to connect India with Afghanistan and Central Asia. For all these reasons, India sees Chabahar as a vital connectivity hub. In addition to its economic potential, the Chabahar port project also holds promise for catalyzing tourism and cultural exchange between our countries, further strengthening our historical and cultural ties.
The increased transit trade through Chabahar will also bring significant economic benefits to Iran. As the world’s fastest-growing major economy, India’s external trade is set to skyrocket in the coming decades. By becoming the primary hub for India’s transit trade to Eurasia and Central Asia, Chabahar port can generate substantial revenues and create greater employment. This development will be particularly advantageous for the Sistan-Balochistan region of Iran, fostering economic growth and cultural exchange with
India.
We recognize that fully realizing the potential of Chabahar port as a transit hub requires significant investment in connecting it to Iran’s land neighbors. India would be happy to contribute to the construction of such connectivity infrastructure, further underscoring our commitment to the India-Iran partnership and our belief in its potential.
India and Iran have outlined an ambitious vision for regional connectivity through the International North-South Transport Corridor (INSTC), a multimodal network that will connect the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran. It would be very beneficial if the Chabahar port could be integrated into the INSTC vision, which would help create synergies between the diverse segments of the INSTC. In this context, yesterday’s historic event assumes even greater significance.
Recently Iran celebrated the ancient festival of Nowroz, which marks the beginning of the New Year and new beginnings. It is a festival that is well-known in India, too, due to our beloved Parsi community. It is very good that we are making a new beginning to our shared connectivity vision early in this auspicious new year. To all my Iranian brothers and sisters, I want to convey warm greetings from more than 1.4 billion Indians. I also want to express my deep gratitude to the Iranian government and people for their invaluable support and cooperation in the Chabahar port project.
Motashakkaram!
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