There are no waivers or concessions, and we should not expect any.
- Direct Trade Route: The Chabahar port provides India with a direct trade route to Afghanistan and Central Asia, bypassing Pakistan.
Counter: Oman should be cultivated as a key partner for securing oil supplies for India. - Strategic Importance: It strengthens India’s regional presence and offers an alternative to China’s Belt and Road Initiative.
Counter: Iran is very much a part of the Belt and Road Initiative. - Economic Benefits: The port facilitates trade through the International North-South Transport Corridor (INSTC), reducing transport costs and time.
Counter: Iran supplies hardly anything apart from oil. Oman can serve India’s needs more efficiently. Looking east, towards Singapore, would be a better policy. Besides, Singapore has the best seaport in the world. - India’s Investment: Under the 2024 agreement, India Ports Global Ltd (IPGL) has committed $120 million to equip the port. Additionally, India has extended a $250 million credit facility for infrastructure development linked to Chabahar.
Counter: Trade with Iran may be reduced but not entirely halted. Also, $250 million is not a substantial amount in the larger scheme of trade, and the disadvantages outweigh the benefits.
P.S. A postgraduate course in International Trade from the Indian Institute of Foreign Trade has enabled me to take the liberty of writing this article.
