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Chabahar port development to boost INSTC: Iran
Nov 28, 2022

Iran’s Deputy Foreign Minister Ali Bagheri Kani has said that the development of Chabahar Port is important for the completion of the International North South Transit Corridor (INSTC).

Kani recently visited India and met the External Affairs Minister and Foreign Secretary.

There has been a flurry of engagements between India and Iran this year, with a focus on strengthening connectivity mechanisms, especially INSTC and Chabahar Port.

Iran is central to India’s plan to increase engagement with Russia and Central Asia, besides the rest of Eurasia. Russia, Iran and Azerbaijan are reportedly entering into a trilateral arrangement to smoothen functioning of the INSTC. The corridor has led to a massive increase in India-Russia trade this year.

Iran’s exports to India increased 35% year-on-year to $361 million in the first seven months of 2022, bulk of which were food items. In the January-July period, India’s exports to Iran surged 54% year-on-year to $1.243 billion.

In late May, the then Iranian ambassador to India said the two countries are trying to diversify the channels of payments to expand bilateral trade.

India is expanding its maritime partnership with Iran alongside the recent moves to boosting infrastructure in the strategically located Chabahar Port. The two sides have signed a memorandum of understanding (MoU) on Mutual Recognition of Seafarer’s Code of Conduct for Unlimited Voyages coinciding with a visit of ports, shipping and waterways and Ayush minister Sarbananda Sonowal to Iran. This will result in training exercises of Iranian seafarers in India.

The MoU will open new vistas of cooperation in the Western Indian Ocean Region (IOR) as both India and Iran are IOR states, said people aware of the matter. India is eyeing a trilateral maritime cooperation involving Oman and Iran in the long run.

The Iranian government is also ready to conclude a long-term contract with India, prioritising the development of transit of goods through the Chabahar port. This contract will also aim at ramping up activities of the INSTC.

Sonowal had visited the Shahid Beheshti terminal at the Chabahar Port to hand over six mobile harbour cranes to the Indian Ports Global Chabahar Free Trade Zone at the port. During the visit, the two countries decided to form a joint technical committee for the smooth functioning of the port.

The Chabahar Port is likely to act as a catalyst for unlocking the huge trade potential in the region. India has pitched to link the port with the INSTC for optimum use by the Central Asian states and other Eurasian states. The corridors are expected to provide an option parallel to China’s Belt and Road Initiative. There are also plans to link the INSTC with the Northern Sea route via the resource-rich Russian Arctic. India is also pitching to connect Chabahar Port with Southeast Asia and East Asia.

economictimes.indiatimes.com

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