Chabahar Port

Context:

The Chabahar port had been granted waiver on sanctions by the united states of America in 2018. This waiver has been revoked as of now in order to further pressurize Iranian regime into conceding to USA’s demands. But, this revocation of waiver may have negative impact on India as India had been jointly operating this port with Iran as per the 2016 agreement.

UPSC Relevance: International Relations

PYQ:

Q. What is the importance of developing Chabahar Port by India? (2017)

(a) India’s trade with African countries will enormously increase.

(b) India’s relations with oil-producing Arab countries will be strengthened.

(c) India will not depend on Pakistan for access to Afghanistan and Central Asia.

(d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India.

About Chabahar port:

• Chabahar is Iran’s oceanic port nearest to India. It is situated in Sistan and Baluchistan Province, on the Makran coast. It lies in the Gulf of Oman.
• Chabahar Port project has two main ports called the Shahid Kalantari Port and the Shahid Beheshti Port.
• Iran had offered India the project of developing the Shahid Beheshti port which was well received by India.

Significance of Chabahar Port:

• Alternative Trade Route: Historically, India’s access to Afghanistan and Central Asia has been largely dependent on transit routes through Pakistan.
  • Chabahar Port offers an alternative route that bypasses Pakistan, reducing India’s reliance on its neighbour for trade with Afghanistan and beyond.
  • Also, Chabahar port will boost India’s access to Iran, the key gateway to the International North-South Transport Corridor (INSTC) that has sea, rail and road routes between India, Iran, Russia, Central Asia and Europe.
• Economic Benefits: Chabahar will play a crucial role in India’s efforts to enhance connections with the resource-rich Central Asian countries and Afghanistan.
  • It will allow India to diversify its trading routes and gain enhanced access to the markets of Russia, Eurasia and Europe, apart from Iran and Afghanistan.
  • Cargo movement through INSTC route is expected to save 30% in cost and 40% in transportation time, ensuring quick turnaround at a competitive cost.
  • Central Asian nations, rich in resources but without direct access to the sea like Kazakhstan and Uzbekistan, have shown interest in utilising Chabahar to connect to the Indian Ocean Regions and tap into the Indian market.
• Humanitarian Assistance: Chabahar Port can serve as a crucial entry point for humanitarian assistance  and reconstruction efforts in Afghanistan.
  • Port has played a crucial role in supplying humanitarian aid, notably during the covid-19 pandemic.
  • 2.5 million tonnes of wheat and 2,000 tonnes of pulses have been trans-shipped from India to Afghanistan via Chabahar port.
  • In 2021, India provided 40,000 litres of the eco-friendly pesticide malathion to Iran through the port to combat locust attacks.
• Strategic Influence and Regional Stability: By developing and operating Chabahar Port, India can enhance its strategic influence in the Indian Ocean region, thus strengthening India’s geopolitical position.
  • The Chabahar port will act as a counter to China’s development of the Gwadar port in Pakistan.
  • Also, India can effectively respond to cases of sea piracy and serve as a first line of defence in the Arabian Sea, due to the docking facilities available at Chabahar.

Potential impact of revocation of waiver of sanctions on India:

• Issues of energy security as Iran and its Chabahar port have also been acting as channel for India to import energy resources and meet its energy security.
• Political impact in the form of potential turbulent relations with Iran if India abides to USA’s conditions on sanctions on the port. This may be seen by Iranian regime as India allying to USA’s policies towards Iran.
• Economic impact in the form of curtailment of trade opportunities in the markets of Central Asian countries, which presently India has been accessing through Chabahar port.
• Diplomatic fallouts such as downturn in India-Afghanistan relations and India-Central Asia relations as the Chabahar port has also been acting as a diplomatic bridge for India vis-à-vis these countries.