India amps up Connect Central Asia policy with key focus on Chabahar Port amid swaying diplomatic dynamics

New Delhi, Sep 7 The recent times witnessed a notable recalibration of diplomatic ties among nations. On the one hand, Washington’s revised trade tariff has initiated a realignment of nations. On the other hand, Beijing’s growing caution in Belt and Road Initiative (BRI) funding reflects its concerns over debt sustainability and security in frontier regions.

Beijing’s sudden withdrawal from a flagship component of the China-Pakistan Economic Corridor (CPEC) signals a more restrained foreign investment stance.

Delays, security threats to Chinese personnel, and Islamabad’s repayment difficulties have tested Beijing’s risk tolerance.

Meanwhile, New Delhi has doubled down on its Connect Central Asia policy, leveraging Chabahar as a lynchpin for access to Afghanistan and beyond.

On Sunday, September 7, India’s National Security Advisor Ajit Doval held a telephone conversation with his counterpart Ali Akbar Ahmadian of Iran. Reports said that their talks focussed on expanding cooperation between the two countries and the present regional situation.

During the discussion, the Chabahar port project was also in focus.

Due to its strategic location, the Shahid Beheshti Port at Chabahar in Iran is an important point for trade and commerce. India has undertaken to develop the port by equipping and operating general cargo and container terminals for 10 years.

A Long-Term Main Contract was signed to this effect on May 13, 2024.

Altogether, Rs 400 crore has been allocated from FY 2016-17 to FY 2023-24.

The amount utilised so far for the development of the port is Rs 201.51 crore, stated Union Shipping Minister Sarbananda Sonowal in a written reply in Lok Sabha this July.

The port witnessed an increase of 43 per cent in vessel traffic and a 34 per cent rise in container traffic in 2023-2024.

It is envisaged that there will be substantial increase in maritime trade and commercial earnings once the port becomes fully functional. China had taken a keen interest in developing it as part of the BRI.

With close ties with Pakistan, the Dragon could be a source for concern for India. But Beijing’s recent shift means Islamabad’s leverage to demand concessions in Chabahar-linked transit agreements with Iran and India reduced.

Pakistan will thus need to do a tightrope walk between two strategic patrons.

India’s commitment to Chabahar port development underscores its efforts to bypass Pakistan-controlled routes.

Operating Iran’s only oceanic port on the Gulf of Oman, Chabahar offers New Delhi a direct gateway to Afghanistan and Central Asia.

Despite US tariff volatility, India persists in modernising port infrastructure and developing associated rail links, viewing Chabahar as essential to its economic and diplomatic outreach.

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