THE PROCESS OF PENNING DOWN A NEW DEAL ON CHABAHAR PORT IS EXPEDITED BY INDIA AND IRAN

World News

Senior officials and diplomats from both countries conducted lengthy discussions earlier this month to iron out most of the persistent concerns that arose between India and Iran regarding the building of the port. When Indian officials visit Iran in the upcoming weeks, a few outstanding concerns are anticipated to be resolved.

According to a source, things are moving quickly as both parties are attempting to resolve the problems that have slowed progress on the project.

India is eager to accelerate the completion of the port in southern Iran as soon as possible given the shifting geopolitical landscape and Chinese advancements. The International North South Corridor will also be connected to the port.

According to Iranian media, talks on ongoing disagreements surrounding the port’s growth were held between June 12 and June 16, according to Ali Akbar Safaei, head of the Iranian Ports and Maritime Organisation.

The long-term agreement aiming at developing the port will be inked after all difficulties have been resolved.

Due to its advantageous location near some of the biggest commerce routes in the world, the Chabahar port offers Mumbai a direct connection to the landlocked Central Asian countries. It also offers a benefit for expanding the port as a transhipment hub.

Due to numerous complications that had arisen between the two nations, the port’s development was delayed.

“An initial investment worth $25 million has so far been committed to Iran and will be used to develop the port,” Safaei said of the agreement between Iran, India, and Afghanistan.

Iranian President Ebrahim Raisi stressed the need to raise India-Iran relations to a “new level” during a meeting with India’s National Security Adviser Ajit Doval in Tehran in May. Raisi also emphasised the need of economic and commercial collaborations.

Despite some early difficulties, relations between India and Iran are presently improving. India has just transported wheat to Afghanistan via the Chabahar Port. An analyst stated that “this reflects the rekindling of relations between India and Iran.”

Iran was hammered by sanctions last year, and the Reserve Bank of India approved using the rupee as a form of payment. Following the US’s reimposition of sanctions against the oil-rich country in 2019, India had stopped importing goods from Iran.

We are considering a long-term rupee trade with Iran in addition to Russia. Sanjeev Sanyal is a member of the prime minister’s economic advisory council.

Trade between New Delhi and Tehran was valued at $17.03 billion in 2018–19. However, following a steady decline—in 2021–2022, it fell to $1.9 billion—the two nations are currently actively trying to increase non–oil trade.

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