Strategic Position of India at Chabahar Port

The interest of India in the Chabahar Port in Iran has again taken a centre stage in the global arena due to the waiver on US sanctions on Indian operations expiring in September 2025. This also puts the investment of India at stake worth its $120 million and the question arises of possible secondary sanctions. Regardless of these complications, Chabahar is one of the pillars of the Indian regional connectivity policy, which allows reaching Afghanistan and Central Asia without going through Pakistan.

Geopolitical Significance

Chabahar is the only Iranian port, which is situated on the southeast coast. As a gateway to landlocked Afghanistan and onwards to Central Asia, particularly through the International North-South Transport Corridor (INSTC) between Mumbai, Iran, Azerbaijan, and Russia, it is important to India. Chabahar, in a strategic position advantage 170 kilometers away from Gwadar Port in Pakistan, which was also developed within the framework of Belt and Road Initiative (BRI) by China, is a counterbalance to the Indian Ocean.

Effect of Sanctions Revocation.

In 2018, the US gave a waiper of the Iran Freedom and Counter-Proliferation Act (IFCA), which permitted India to operate the Shahid Beheshti Terminal without any punishment. India Ports Global Limited (IPGL) has been put at the mercy of sanctions as the waiver expires in 2025 and it is unclear whether India will remain part of the waiver. The cancellation complicates cooperation between India and Iran and makes New Delhi choose between economic factors and diplomatic and strategic dangers.

Present Operations and Infrastructure.

Chabahar Port has a -16 metre draft and is capable of accommodating up to 120, 000 DWT. India has operations at the Shahid Beheshti Terminal with modern cargo-handling cranes and equipment. The surrounding area is poorly developed, there is a lack of housing, schools, no hospitals, and this is why it is necessary to invest more.

Economic Vision and Free Zone.

Chabahar Free Zone is a new and not yet developed area of trade and logistics. The India Iran hopes to lure Indian firms in industrial projects and urban development even culture related ventures including a proposed cricket stadium with BCCI support. Such projects are a symbol of what the port can offer in terms of nontrade and seek to make India and Iran have more associations.

Strategic Outlook

The future of Chabahar depends on how India can manage sanctions as well as regional tensions. As China and Pakistan deepen their presence over Gwadar, the continued occupancy over Chabahar by India is critical to ensure connectivity, proliferate trade routes, and consolidate its position towards being in the economic diplomacy of the region.