Context: India observes Chabahar Day with emphasis on linkage with Central Asia. ‘Chabahar Day’ observed to promote Chabahar – Link to INSTC – Connecting Central Asian Markets.

Key Events

• Ministry of Port, Shipping and Waterways (MoPSW) in association with India Ports Global observed ‘Chabahar Day’ to mark the Chabahar – Link to INSTC – Connecting Central Asian Markets in Mumbai.

• Dignitaries from Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Afghanistan were present on the occasion.

• The Chabahar Port located in Iran is the commercial transit center for the region and especially Central Asia.

• Minister in his address stated that our vision is to make Shahid Beheshti Port at Chabahar a transit hub and linking it to INSTC to reach out to Central Asian Countries.

• During the event, the delegates from the Central Asian countries highlighted how Chabahar link with INSTC can play a vital role in boosting EXIM trade in their regions and its potential to further boost development in the landlocked countries.

• The port is being developed by India, Iran and Afghanistan to boost trade ties among the three countries in the wake of Pakistan denying transit access to New Delhi.

• Further, In his address at the foreign ministerial meeting of the SCO (Shanghai Cooperation Organization), the Foreign Minister of India underlined the potential of the Chabahar port in Iran for the economic future of the grouping.

Chabahar Port

• It is located in southeastern Iran, on the Gulf of Oman and at the mouth of the Strait of Hormuz.

• It serves as the only marine port in Iran and consists of two separate ports named Shahid Kalantar and Shahid Beheshti.

• It is the only Iranian port with direct access to the Indian Ocean.

• It serves as the golden gate to the landlocked countries of middle east.

Significance of Chabahar port for India

• India can bypass Pakistan in transporting goods to Afghanistan.

• Chabahar port will boost India's access to Iran, the key gateway to the International North-South Transport Corridor that has sea, rail and road routes between India, Russia, Iran, Europe and Central Asia.

• Beneficial to India in countering Chinese presence in the Arabian Sea which China is trying to ensure by helping Pakistan develop the Gwadar port.

• Iran can also become a military ally to India.

• Significant boost in the import of iron ore, sugar and rice to India.

• The import cost of oil to India will also see a considerable decline.

• The port will ensure in the establishment of a politically sustainable connectivity between India and Afghanistan.

International North-South Transport Corridor (INSTC)

• It is a multi-modal transportation established on 12th September 2000 in St. Petersburg, by Iran, Russia and India for the purpose of promoting transportation cooperation among the Member States.

• The INSTC was expanded to include eleven new members, namely: the Republic of Azerbaijan, Republic of Armenia, Republic of Kazakhstan, Kyrgyz Republic, Republic of Tajikistan, Republic of Turkey, Republic of Ukraine, Republic of Belarus, Oman, Syria, Bulgaria (Observer).

• It envisions a 7,200-km-long multi-mode network of ship, rail and road route for transporting freight, aimed at reducing the carriage cost between India and Russia by about 30% and bringing down the transit time from 40 days by more than half.

• This corridor connects India Ocean and the Persian Gulf to the Caspian Sea via the Islamic Republic of Iran and then is connected to St. Petersburg and North Europe via the Russian Federation.

Significance of INSTC to India

• India can now bypass Pakistan to access Afghanistan, central Asia and beyond, 

• The infrastructure will allow India’s access to Afghanistan and Central Asia, 

• A special economic zone around Chabahar will offer Indian companies the opportunity to set up a range of industries; for example, NALCO proposes to set up an aluminium smelter.