The United States issued a stern warning about potential sanctions on India for its recent 10-year agreement to operate Iran’s Chabahar Port. However, India’s External Affairs Minister, S. Jaishankar, emphasized that the project will greatly benefit the entire region and urged against taking a “narrow view” of the initiative.
Speaking at an event in Kolkata after launching the Bengali edition of his book “Why Bharat Matters,” Jaishankar acknowledged the U.S. remarks but stressed the need to communicate and convince people that the Chabahar Port project is beneficial for all parties involved. He highlighted that the U.S. itself has previously appreciated the broader relevance and significance of Chabahar, indicating a willingness to work towards resolving any concerns.
The previous day, the U.S. State Department’s Principal Deputy Spokesperson, Vedant Patel, cautioned that “anyone” considering business deals with Tehran must be aware of the “potential risk of sanctions.” He reiterated that U.S. sanctions on Iran remain in place, and the U.S. will continue to enforce them.
Despite these warnings, India has long been involved in the Chabahar Port Development Project, which serves as a crucial transit hub for trade with landlocked countries like Afghanistan and those in Central Asia. However, until recently, India had been unable to secure a long-term agreement for the operation of the port, which Jaishankar deemed essential for improving port operations and maximizing its potential benefits.
According to Jaishankar, various issues on the Iranian side, including changes in joint-venture partners and shifting conditions, had previously hindered the finalization of a long-term contract. However, these obstacles were finally resolved, paving the way for the recent 10-year agreement between Indian Ports Global Limited (IPGL) and Iran’s Port & Maritime Organisation (PMO).
The Chabahar Port project is considered a flagship collaboration between India and Iran, with New Delhi playing a significant role in its development and operation. India has invested heavily in upgrading the port’s infrastructure and facilities, aiming to establish it as a viable transit route for Indian goods destined for Afghanistan and Central Asia.
Jaishankar emphasized that the long-term agreement is crucial for improving port operations, as without it, meaningful progress cannot be achieved. He expressed confidence that the port’s operation will benefit the entire region, facilitating trade and economic cooperation with landlocked nations in Central Asia.
While the U.S. warnings highlight the complex geopolitical dynamics surrounding Iran and the potential risks of doing business with the country, India appears resolute in its commitment to the Chabahar Port project. New Delhi views the initiative as a strategic investment that will not only enhance regional connectivity but also strengthen its economic ties with key partners in the region.