1. What is the India-Iran Chabahar deal?
The India-Iran Chabahar deal aims to develop and operate the Chabahar Port in Iran. Chabahar Port is a strategically located port in the Gulf of Oman, and India seeks to utilize it as a gateway to access landlocked Afghanistan and Central Asian markets.
2. When was the deal initiated?
India Ports Global Ltd (IPGL) and Arya Banader of Iran signed a contract to develop the Chabahar Port in 2016.
3. What is the current status of the deal?
India and Iran have been signing one-year contract extensions for developing and running the Shahid Beheshti Terminal at Chabahar Port. However, after years of negotiations, they are expected to sign a long-term deal to provide certainty for investment and development plans.
4. What is the objective of the long-term deal?
The long-term deal is aimed at allowing India to develop the Chabahar Port infrastructure over an extended period, providing an opportunity for automatic renewal after a 10-year period.
5. Why is the Chabahar Port significant for India?
The Chabahar Port provides India with a strategic access point to Afghanistan and Central Asian markets, bypassing Pakistan. It also enhances India's connectivity initiatives such as the International North-South Transport Corridor (INSTC) and contributes to regional trade and economic cooperation.
6. When is the expected date for signing the long-term deal?
The contours of the long-term deal are likely to be finalized before the Global Maritime India Summit 2023 scheduled in October in New Delhi.
International North-South Transport Corridor (INSTC)
What is the International North-South Transport Corridor (INSTC)?
The International North-South Transport Corridor (INSTC) is a multi-modal transport project covering a distance of 7,200 kilometers, connecting India, Iran, Afghanistan, Armenia, Russia, Belarus, Bulgaria, Kazakhstan, Kyrgyzstan, Oman, Syria, Tajikistan, Turkey, and Ukraine. It aims to facilitate the movement of freight between Central Asia, Europe, and India through shortened routes.
When was the INSTC initiated, and by which countries?
The INSTC project was initiated by Russia, India, and Iran in September 2000 in St. Petersburg. The agreement was signed on May 16, 2002. Since then, efforts have been made by the participating countries to bring the INSTC to life.
What is the purpose of the INSTC?
The INSTC is a strategic connectivity project aimed at enhancing trade and transportation links between the member nations. It seeks to create specialized manufacturing, logistics, and transit hubs along the corridor and facilitate access to newer markets. The project aims to reduce the time and cost of delivering goods compared to traditional routes like the Suez Canal.
What countries does the INSTC connect, and which regions does it cover?
The INSTC connects India, Iran, Afghanistan, Armenia, Russia, Belarus, Bulgaria, Kazakhstan, Kyrgyzstan, Oman, Syria, Tajikistan, Turkey, and Ukraine. It covers regions in Central Asia and Europe.
How will the INSTC benefit India?
For India, the INSTC provides strategic connectivity to Central Asia and Europe, facilitating regional trade and economic growth. It offers shorter routes for transporting goods, reducing delivery time and cost. India is also interested in including Iran's Chabahar Port in the INSTC to enhance connectivity further.
What potential sectors stand to gain from the INSTC's enhanced connectivity?
The INSTC's enhanced connectivity can lead to the development of specialized sectors like pharmaceuticals, agriculture, and cross-border e-commerce. Improved information sharing mechanisms along the corridor can reverse the existing demand deficit in member nations and boost trade opportunities.
What is the current status of the INSTC project?
As of now, the INSTC's western corridor has been operationalized, connecting India with Europe. Efforts are underway to operationalize the eastern corridor, which will connect China with Russia and European countries via Central Asian countries. India is working to include Iran's Chabahar Port in the eastern corridor.
