CHABAHAR PORT – INTERNATIONAL

News: Meet on Chabahar: countries emphasise 'territorial integrity'

 

What's in the news?

       India and several Central Asian countries have emphasised the need to respect "sovereignty and territorial integrity" while pushing for connectivity projects, during the Joint Working Group Meeting on the Chabahar port, held in Mumbai on April 12 and 13.

 

Key takeaways:

       The meeting saw the participation of Deputy Ministers and senior officials of Iran, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan and India. Special invitees included the country representative of the United Nations World Food Programme.

       This coincides with the ministerial meeting of neighbouring countries of Afghanistan in Samarkand, where China expressed its willingness to help Taliban-led Kabul join the Belt and Road Initiative.

 

Geo-political and Geo-strategic Importance of Chabahar Port:

1. Energy Imports:

       Amid the turmoil in Qatar, Saudi Arabia and other OECD countries, the development of Chabahar port holds importance to India in regulating its key oil imports.

2. Countering China's Presence:

       To counter Chinese presence in the western Arabian Sea amid the development of Gwadar port in Pakistan, Chabahar port holds importance.

3. Bypass Pakistan:

       The port will allow India to bypass Pakistan to transport goods to Afghanistan and Central Asia using a sea-land route.

4. Developing Trade ties with Afghanistan:

       Afghanistan being a landlocked country can be reached easily through sea land route from Chabahar port.

       With the improved connectivity, cultural and trade ties with Afghanistan can be taken to a higher level.

       It would provide access to strategically important countries such as Afghanistan whose stability is important from India's security perspective.

5. Gateway to Central Asia:

       Chabahar port in Iran would be India’s gateway to landlocked Afghanistan and other central Asian countries, overcoming geographical constraints imposed by Pakistan.

6. Improving Regional Connectivity:

       It gives momentum to Ashgabat and the International North-South Transport Corridor Project which aims to have connectivity between India, Iran, Central Asia and Europe via infrastructural projects like rail, ship and road routes.

       It will reduce the cost of transport of goods to Central and West Asian countries from India and can achieve our energy requirements.

7. Maritime prowess of India:

       It would provide India with control and close monitoring in the Indian ocean region and presence of outside power in the region.

8. Countering Terrorism:

       Terrorism has become a major issue in the region especially in emanating from Pakistan and therefore it would provide an insight into the terrorist activities along with cooperation of Iran.


Challenges in developing Chabahar Port:

1. Sanctions on Iran:

       International sanction against Iran due to its nuclear activity which limited India's engagement with Iran.

2. Fiscal Constraints:

       Huge financial investments seem to be a big challenge for India due to persistent issues like twin deficits, domestic policies and infrastructure issues.

3. Restrain of Investors:

       Lack of Investors to invest in the development of Chabahar port due to imposing of sanction from the west which was recently revoked by the US.

4. Lack of Political Will:

       With developing ties with the US, the Indian government is reluctant to develop the Chabahar port in a time bound manner.

5. Rising costs:

       Delay caused cost escalation which is also one of the causes of implementation hindrance.

6. Change in Iran's Stand:

       In the second term of Hassan Rouhani, the stand of the Iran government was changed to a more radical one.

       Statement of the Iran government noted that the port can't be exclusively used by India but by Pakistan and China also has slowed the pace of development of Chabahar Port.

 

WAY FORWARD:

       Speed up the project and implement it in a time bound manner with close monitoring at the highest level.

       Availability of finance and transactions in international currency should be speed up with cooperation of international banks.

       India should keep its strategic and economic interest upfront without having been influenced by outside power.

 

India should not limit its strategic autonomy because of foreign pressures. Rather through skillful diplomacy pursue its national interests amidst geopolitical challenges. India may also consider building an international consortium with countries like Japan and South Korea to invest in the project for timely completion of the project.

 

Further Reference: India - Iran Relations