chabahar

It is probably one of the masterstrokes of Modi and even the staunchest anti-Modi media are singing praises of it. India’s $500 million port deal with Iran is a masterstroke—and a tough balancing act

It is not new and has been in the works for a long time and has been finally greenlighted by the United States [US backs India-Iran Chabahar port deal despite residual suspicion over Tehran].

In one stroke, it does the following for India:

1. Be a part of the North–South Transport Corridor and help directly connect with Europe. Russia, China and US are all trying to build their own dedicated trade routes in Asia. This deal will allow India to connect to the Russian route, while keeping its option open in other two blocs.

1. Reestablish its strong relationship with Iran at a time when India’s overtures in Israel is creating flutters in the region.
2. Open a route into Russia and Central Asia. Russia is another old friend that feels ignored by India these days and this will allow India to build on some of the old friendship, while it continues to deepen its US relations.
3. Get into Afghanistan without needing Pakistan’s help. India is among the biggest allies of Afghanistan and the problem is that India & Afghanistan had to go through their mutual foe that sits between them. The new trade deal will allow India to sidestep Pakistan to do business with Afghanistan. Indian, Iran and Afghanistan sign trade corridor deal