NEW DELHI - Endorsing the need to enhance connectivity, India along with the Central Asian countries have worked out ways to utilize the Chabahar Port agreeing that connectivity should be based on transparency, financial sustainability, and respect for sovereignty, which in fact is a subtle rebuke to China’s Belt and Road Initiative (BRI)
.This comes amid reports that show that China has become more aware of the debt implications of BRI. A study by the Center for Global Development reported that eight of the 63 countries participating in the BRI are at risk of “debt distress.”
Chahabar Port has many distinguishing features due to its geographical location. It is located in Iran’s southeastern Sistan and Baluchestan provinces. This port has a huge potential to act as a global trade hub. The location of the port makes it attractive from both a domestic and international perspective.
India and Iran have entered into several MoUs with Iran. India welcomed the interest of Central Asian countries to utilize the services of Shahid Beheshti Terminal at Chabahar Port for facilitating their trade with India and beyond.A joint working group formed between India, Kazakhstan, Uzbekistan, and Turkmenistan endorsed the need to move towards connectivity initiatives.
There is a great significance of the Chahabar Port for war-torn Afghanistan as well. Chahabar port is very critical in order to boost the economy of Afghanistan.The main points of attraction in the Chabahar Port lie in its direct ocean access and geographic proximity to Afghanistan, Dubai, India, and Pakistan. The positioning of Chabahar on the international North-South transport corridor gives it the potential to develop into a commercial hub.
Since 2018, the Chabahar Port has been exempted from sanctions imposed by the USA, a crucial factor in its development. In making this exemption, the Trump administration cited the need to bolster Afghanistan’s potential for trade.
Iran has been making a concerted effort to develop the eastern part of the country and create land-based trading routes centring on Chabahar. Chabahar’s location in the Sistan-Baluchistan Province bordering Pakistan and Afghanistan is crucial.
Presently, the primary challenge facing Iran and the Chabahar Port remains the unpredictability of
US policy and the potential for sanctions at any point, owing to the domestic polarization in American politics.
Further, the willingness of investors to commit to Chabahar would remain contingent on clarity and assurances regarding re-imposition of sanctions. Nonetheless, the strategic advantages of the Chabahar Port and the unique opportunities they provide ensure that it must emerge as a regional trade hub in the long term.
