India and Iran finalizes he historical Chabahar port deal

Civilizational giants -India and Iran agreed to build the much anticipated gateway to central Asia- Chabahar port.

On the finance side of the port development, PM Modi declared that India will open $500 mn line of credit. Iran’s reentry into mainstream world after the US ban removal has facilitated the deal. Already, India has expanded import of crude from Iran.

The port is situated just little away from the Pakistan border and is expected to fuel India’s effort to get a transit route into Central Asia. Connecting the port, a corridor will be completed through Afghanistan. It is expected that the two sides will complete the detailed financial side of the project soon.

 Chabahar Port is a major land access plan for India to Central Asia when the region is witnessing several connectivity projects induced by China’s Belt and Road initiatives.  The port will give significant strategic space to India when Pakistan and China are working on Central Asian connectivity through Pakistan using the Chinese constructed Gwadar Port in Pakistan.

This is the first time in fifteen years that an Indian PM is visiting Iran.