Significance of Chabahar Port for India: A Counter

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There are no waivers or concessions, and we should not expect any.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

Image Credits – Rajesh Menon;
Lt Col Umang Kohli (Retd.)
Lt Col Umang Kohli (Retd.)
Lt Col Umang Kohli (Retd) served the Indian Armed Forces for 24 years, with six years stationed in Jammu & Kashmir. As a company commander from 2004 to 2007, he led numerous successful anti-terrorism operations. His experiences in Kashmir were chronicled in the widely acclaimed book In The Times of Article 370. He has since then studied the impact of information on warfare. Has done four different courses in Journalism and Mass Communication including two of them in Australia and United States. With a background in armored formations and the NCC, he has authored numerous articles and delivered lectures on geopolitics and hybrid warfare, making him one of the few journalists with active combat experience.

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