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India's New Access To Iran's Chabahar Port

India's New Access To Iran's Chabahar Port

Global political and military conflicts often disrupt trade but new trade routes can mitigate these risks. 

India's 2024 agreement with Iran to develop and operate the Chabahar Port for 10 years is a significant step in this direction. 

This port located on the Gulf of Oman will provide access to Central Asia and Afghanistan bypassing Pakistan. 

The Shanghai Cooperation Organisation (SCO) founded by China and Russia includes Central Asian nations and has dialogue partners like India, Iran and Pakistan.

During an SCO meeting Indian Prime Minister Narendra Modi via EAM Jaishankar emphasized the importance of collaborative progress and respecting sovereignty in creating new connectivity linkages. 

He highlighted the Chabahar Port's potential in boosting trade and supply chain resilience. 

Despite US sanctions on Iran India proceeded with the deal involving Indian Ports Global Limited (IPGL) and Iran's Port & Maritime Organisation with IPGL investing $120 million and an additional $250 million in financing. 

The agreement also aims to expedite a railway project between Chabahar Port and Zahedan City enhancing regional trade opportunities.