Syllabus
GS Paper 2 – International Relations
Context
India secured rights to invest in and operate Shahid-Behesti terminal at Chabahar Port for another 10 years.
Source
The Hindu | Editorial dated 28th May 2024
Chabahar’s opportunities and challenges
India and Iran recently renewed a contract allowing New Delhi to invest in and operate the Shahid-Behesti terminal at Chabahar Port for another 10 years. This agreement is significant amid ongoing conflict in Gaza, Israel-Iran tensions, and political instability in Iran. Chabahar port is a key project for India, enhancing its strategic and economic influence in the region.
Chabahar Port
Chabahar’s roots trace back to 2003, reflecting a time when India was actively seeking to develop economic assets abroad.
Along with projects like Sakhalin-I in Russia, Chabahar was part of India’s broader strategy to enhance its global economic footprint.
Importance of the Chabahar Project
- Extended Neighbourhood Strategy:
- Chabahar Port represents India’s vision of extending its neighbourhood beyond South Asia to include Central Asia and the Middle East.
- This strategy aims to strengthen regional ties and promote economic and security interests.
- International North–South Transport Corridor (INSTC):
- The port is a key component of the INSTC, which aims to connect India with Central Asia, Russia, and Europe via Iran.
- This corridor provides a shorter and more efficient trade route.
- Bypassing Pakistan:
- Chabahar allows India to bypass Pakistan for access to Afghanistan and Central Asia.
- This is crucial for India given the strained relations with Pakistan and the latter’s reluctance to allow overland access for Indian goods.
- Diplomatic significance:
- India’s Balancing Act: India’s investment in Israel’s Haifa port by the Adani Group shows its ability to maintain balanced relations with multiple countries, despite their conflicting interests.
- This diplomatic maneuvering enhances India’s strategic standing in the region.
- India’s ability to engage simultaneously with Iran (through Chabahar) and Israel (through Haifa) reflects its sophisticated diplomacy.
- This dual engagement is a testament to India’s strategic acumen and its capability to navigate complex international relations.
Challenges in India-Iran Relations
- Singular Major Project:
- Chabahar is often highlighted as a significant achievement in India-Iran relations, but it stands almost alone as a major bilateral project.
- This over-reliance on a single project makes the relationship vulnerable to fluctuations in political and economic conditions.
- Setbacks in Other Initiatives:
- Other joint initiatives, such as the Farzad-B gas field discovered by ONGC Videsh and the IranoHind shipping company, have faced challenges and setbacks.
- These issues reflect the complexities and difficulties in expanding bilateral cooperation beyond Chabahar.
- Tensions in West Asia:
- The recent renewal of the Chabahar deal came amid heightened tensions between Israel and Iran, highlighting the complex geopolitical environment in which India operates.
- Potential U.S. sanctions on Chabahar considering rivalry between the two nations.
Conclusion
Chabahar Port is crucial for India’s regional strategy, offering both significant opportunities and challenges. Diversifying economic cooperation with Iran and encouraging a more accommodating U.S. stance on sanctions will be key to maximizing its potential. This approach supports India’s broader geopolitical goals and contributes to regional stability and economic integration.
Related Topic
International North-South Transport Corridor (INSTC)
- INSTC is a multi-modal transportation route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and onward to northern Europe via St. Petersburg in Russia.
- The corridor includes seaports on the Persian Gulf and in the Caspian region, as well as road and rail routes.
- Aim: The main purpose of the corridor was to reduce carriage costs and transit time between India and Russia. The transit time is expected to reduce to almost half, once the corridor becomes fully functional.
- Development:
- It was first mooted in 2000. The idea was to build a transport corridor linking Russia’s Baltic Sea coast to India’s western ports in the Arabian Sea via Iran.
- Russia, India and Iran signed preliminary agreements to develop the 7,200-km-long International North-South Transport Corridor (NSTC) in 2002.
- Three years later, Azerbaijan signed up for the project.
- This agreement was eventually ratified by 13 countries — India, Russia, Iran, Azerbaijan, Belarus, Bulgaria, Armenia, Kazakhstan, Kyrgyzstan, Oman, Tajikistan, Turkey and Ukraine.
References
Related PYQ
In what ways would the ongoing US-Iran Nuclear Pact Controversy affect the national interest of India? How should India respond to this situation? [ UPSC Civil Services Exam – Mains 2018]
Practice Question
Discuss the strategic significance of the Chabahar Port for India in the context of its regional and international relations. [150 words]