Chabahar work to expand even more rapidly in post-war era’: Iran envoy | India News
NEW DELHI: As bombs fall across West Asia and sanctions bite, Iran says its economic engagement with India will remain steady during the war and increase rapidly if the situation stabilises. Mohammad Fatali, Iran’s ambassador to India, hinted TOI that wartime disruptions are “mere speed bumps” and that Tehran’s “outlook on the future of Iran-India economic relations—even in wartime and especially in the postwar period—remains positive and broad”. “Economic cooperation between our two countries is built on mutual interests and trust and has significant potential for further development,” Fatali said. Place the spotlight on Chabahar port project, he added that it is a key project in this relationship. “In this regard, Chabahar Port, as a strategic project, plays an important role in strengthening trade and transit connectivity between Iran, India and the region,” he said.
Located on Iran’s southeastern coast, Chabahar is New Delhi’s strategic bypass for long-landlocked Afghanistan and Central Asia, bypassing Pakistan’s choke points, which do not allow overland transit for Indian goods. The tenth-century Persian scholar and author al-Biruni, in his book Tarikh al-Hind (History of India), described the coastal region near the city of Chabahar, then known as Teez or Tis, as the “entry point or beginning of coastal India”.For Tehran, the port is a lifeline for global reintegration, countering decades of Western isolation. Fatali, emphasizing his regional pivot, said: “We believe Chabahar can become an important hub that will connect Central Asia with open waters.”The Chabahar port project dates to the 1970s, when the last Shah of Iran, Mohammad Reza Pahlavi, proposed it as a deep-sea hub in the Gulf of Oman. Work on the project slowed during the 1979 Islamic Revolution in Iran and subsequent leadership changes. In the 1980s, when the Iran-Iraq War weakened Iran’s Persian Gulf routes, Iran redoubled its focus on shifting its trade and expanding Chabahar.When India entered into talks to develop the port around 2003, it meant bypassing Pakistan and gaining access to Afghanistan and Central Asia. But it was also in response to initial construction in Pakistan’s Gwadar under Beijing’s flagship $62 billion China-Pakistan Economic Corridor (CPEC).The partnership was formalized through a memorandum of understanding in 2015, with India pledging up to $500 million during Prime Minister Narendra Modi’s 2016 visit to Tehran. The agreement, renewed for 10 years in 2024 (previously renewed annually), promises India a direct sea-land corridor to Central Asia and beyond — crucial for trade in minerals, grains and energy.Through Chabahar, goods can be shipped from Indian ports to Iran and then transported further inland by road and rail to Russia, Central Asia, Europe.India has invested in port equipment and operations, while Iran has worked on expanding connectivity from ports to its internal transport network. Progress has been uneven due to sanctions on Iran and delays in infrastructure development.In the current phase of the port, India has committed more than $350+ million in core investment as well as lines of credit including equipment, berths and the proposed next phase includes additional berths and rail connectivity and is estimated to require additional funding. The Iranian ambassador’s statement landed on a knife edge at a time when India is considering its options under US sanctions on Iran. A waiver deadline looms on April 26, 2026Amid continued uncertainty in the regional security environment, Fatali’s comments signaled optimism and reassurance that the project would remain on track and pick up momentum after its completion, despite ongoing geopolitical tensions.
