Is India playing a big game? , signed a 10-year contract with Iran to develop Chabahar Port Central Asian countries | Chabahar Port | Chabahar Port

On the 13th local time, India and Iran signed a 10-year contract worth US$370 million to develop and operate Iran's Chabahar Port.

According to Indian public opinion, this is the first time that India has obtained the management rights of an overseas port. The long-term contract will strengthen India's ties with regional power Iran, thereby balancing China's close cooperation with Pakistan and hedging China's growing influence.

However, some analysts pointed out that although the Qia Port project is regarded by India as an important strategic and economic vision, it faces multiple challenges and its development prospects are uncertain.

On the same day, Indian Ports Global Corporation and the Iranian Ports and Maritime Organization signed this long-term agreement.

According to the agreement, the total contract value reaches US$370 million, including an investment of approximately US$120 million by IPGL, and an additional US$250 million in financing, which will be used to strengthen port infrastructure construction, expand transportation facilities, etc.

According to Indian public opinion, this is the first time that India has obtained the right to manage an overseas port.

The new agreement will replace the old contract, which only covers the operation rights of Shaheed Beheshti Terminal at Chabahar Port and needs to be renewed when the contract expires. The new agreement is valid for 10 years and will be automatically extended.

On the same day, Indian Foreign Minister Subrahmanyam Jaishankar said that the new agreement would clear the way for larger-scale investments in Chabahar Port.

India has always had a soft spot for Chabahar Port.

As early as 2002, India discussed development matters with Iran; in 2003, the two sides signed a strategic cooperation roadmap, and the Port of Chahar was included; in 2016, India, Iran and Afghanistan signed a tripartite agreement to develop the Port of Chahar, and India announced an investment of 500 million Dollar. Now, India has signed a long-term agreement with Iran.

India attaches great importance to the Port of Chahar because the port is a key hub that can carry New Delhi's economic and geopolitical ambitions.

Chabahar Port is located on the coast of the Gulf of Oman in southeastern Iran, adjacent to India, Afghanistan, Pakistan and other countries. The port faces the Arabian Sea and then directly reaches the Indian Ocean.

In terms of economy and trade, Qia Port is regarded by India as a key gateway to expand trade to Central Asia and even Eurasia.

First of all, the Qiaport allows India to bypass its rival Pakistan and open a maritime trade channel to countries in West Asia and Central Asia, thus getting rid of its dependence on Pakistan's land route.

Due to its reliance on Pakistan’s land route to connect with target markets, India’s trade volume with Central Asia and Afghanistan has remained at around US$2 billion for many years.

Analysts believe that in the next few years, Qia Port will have great potential in improving trade between India, Afghanistan and Central Asian countries.

In addition, the use of Qiaport can also reduce transportation costs between India and Central Asia by about 60%.

Secondly, Qia Port is also an important transit point for the International North-South Transport Corridor project proposed by Iran, Russia and India. It is of great significance to regional trade and will strengthen India’s trade ties with Iran, Afghanistan, Central Asian countries and Russia.

In addition, the Qiaport project is exempted from sanctions by the United States, thus simplifying trade procedures with other countries.

In terms of geopolitics, India regards Port Chahar as an important link in realizing regional and global strategies.

Indian public opinion believes that the new agreement represents a major geopolitical extension for India toward Iran, which will help India counterbalance China's growing regional influence and hedge against China's "One Belt, One Road" initiative.

For example, the Qia Port is regarded by India as a check and balance to the Gwadar Port in Pakistan developed by China. Gwadar Port is only 75 kilometers away from Chabahar Port.

Observers point out that India’s participation in the development of the Chahar Port is a key strategy in its pursuit of great power status, which can expand its influence within the regional market and use the India-Iran alliance to balance the close cooperation between China and Pakistan.

Of course, for Iran, developing Qia Port also has strategic value.

Analysts pointed out that in the face of economic sanctions and diplomatic isolation from the United States and the West, Iran urgently needs to make new partners and find alternative options. Introducing Indian investment to develop Qia Port is in line with Iran’s eastward strategy. At the same time, Iran also hopes that India will invest in its energy industry, industry and mining.

However, Tehran is also trying to find a balance between China and India. For example, Iran and China have opened a new direct shipping route from Qiagang Port; Iran has also signed a 25-year comprehensive cooperation plan with China; Tehran is also an important partner of China's "One Belt, One Road" initiative.

Although India is excited about finalizing this 10-year agreement, the development prospects of Qia Port are considered uncertain.

Analysts believe that many variables may disrupt Qiagang’s development trajectory.

For example, U.S. sanctions on Iran are a major obstacle.

The United States warned of "potential sanctions risks" just after India and Iran signed a port deal.

Analysts said that the United States increased sanctions on Tehran after withdrawing from the Iran nuclear deal. Although the Qiaport project was exempted, it was still affected by the sanctions, resulting in slow progress of the project and failure to fully invest.

For example, as the main developer and operator of Qiagang Port, IPGL has invested US$85 million in the development of Qiagang Port since the signing of the contract in 2016, which is far from its original investment plan of US$250 million.

For another example, the Taliban's control of Afghanistan and the security situation in Afghanistan will interfere with the established mature trade network between Afghanistan and Central Asia.

Some analysts pointed out that the development of Qiaogang must be integrated with the international north-south transportation corridor to better realize its commercial and strategic potential. However, the Ukraine crisis and the breakdown in Russia-EU relations complicate INSTC’s prospects.