Prime Minister <keyword id="19895781" type="General" weightage="20" keywordseo="narendra-modi" source="keywords">Narendra Modi</keyword> termed India signing a contract to operate the strategic <keyword id="2002303" type="General" weightage="20" keywordseo="Iranian-port" source="Orion">Iranian port</keyword> of <keyword id="20201909" type="General" weightage="100" keywordseo="chabahar" source="keywords">Chabahar</keyword> as an important milestone and said New Delhi will work to provide connectivity to landlocked <keyword id="19896116" type="General" weightage="20" keywordseo="Afghanistan" source="keywords">Afghanistan</keyword> and <keyword id="19946000" type="General" weightage="20" keywordseo="Central-Asia" source="keywords">Central Asia</keyword> region to promote <keyword id="19900989" type="General" weightage="20" keywordseo="trade" source="keywords">trade</keyword> and commerce. In an interview to PTI, he said India will work to promote regional connectivity, trade and commerce through not just the <keyword id="190285" type="General" weightage="20" keywordseo="Chabahar-port" source="Orion">Chabahar port</keyword> but also through the International North South Transport Corridor as also the India-Middle East-Europe Economic Corridor. Since coming to power in 2014, Modi said, his government gave precedence to Chabahar Port. "In 2016, during my visit to Iran, the trilateral agreement between India, Iran and Afghanistan was signed, in order to provide the much-needed connectivity to Afghanistan." An Indian company took over the port operations a few years ago, and since then it is being used by India to provide "humanitarian assistance to Afghanistan including wheat, pulses, pesticides, medical supplies". "The recent signing of the long-term agreement for the development of Chabahar Port is an important milestone," he said. India had on May 13 signed a 10-year agreement to operate the Chabahar port on the Gulf of Oman, providing Indian goods a gateway to reach landlocked Afghanistan and Central Asia using a road and rail project called International North-South Transport Corridor, bypassing Pakistan. "India will work for ensuring that our efforts promote regional connectivity, trade and commerce, including to and from the landlocked Afghanistan and the Central Asia region. This is also embedded in our vision to promote connectivity including through the International North South Transport Corridor, as also the India-Middle East -Europe Economic Corridor," Modi said. The International North South Transport Corridor (INSTC) comprises 7,200 kilometres of sea, rail and road lines crossing numerous borders to help transport goods from India to Russia via Iran as an alternative to the conventional Suez Canal route. It connects the Indian Ocean and Persian Gulf to the Caspian Sea via Iran and then to St. Petersburg and North European via the Russian Federation. "In this era of globalisation, connectivity plays an important role. It is our endeavour to provide connectivity especially to those countries which are landlocked," the prime minister said. "I have always found deep interest among the leaders of the Central Asian countries to use this port for getting access to the sea and connect to India." The long-term agreement for Chabahar port was signed by Indian Ports Global Limited (IPGL) and the Port &amp; Maritime Organisation of Iran. IPGL is to invest about USD 120 million while another USD 250 million will be raised as debt. It replaced an initial 2016 pact, which covered India's operations at Shahid Beheshti terminal in Chabahar port and had been renewed on an annual basis. Chabahar port was last year used by India to send 20,000 tonnes of wheat aid to Afghanistan. In 2021, the same was used to supply environment-friendly pesticides to Iran.

Chabahar port: Long-term pact to promote trade, connectivity with Afghanistan and Central Asia, says PM Modi

<keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> and <keyword id="19915592" type="General" weightage="20" keywordseo="Iran" source="keywords">Iran</keyword> on Monday signed a long-term contract for the operation of the <keyword id="21642923" type="General" weightage="20" keywordseo="Shahid-Beheshti-Port" source="keywords">Shahid Beheshti Port</keyword> terminal at <keyword id="20201909" type="General" weightage="20" keywordseo="Chabahar" source="keywords">Chabahar</keyword> in Iran. The contract was signed by <keyword id="21642924" type="General" weightage="20" keywordseo="India-Ports-Global-Ltd" source="keywords" meta.keywordsubtype="org" meta.entityname="India Ports Global Ltd" meta.hostid="261" meta.entityid="India Ports Global Ltd">India Ports Global Ltd</keyword> and Ports and Maritime Organisation of Iran in the presence Ports, Shipping and Waterways Minister Sarbananda Sonowal, according to a series of posts on X by the Indian Embassy in Iran. This is the first time India will take over the management of an overseas port. Speaking on the occasion, Sonowal said, "With the signature of this contract, we have laid the foundations of India's long-term involvement at Chabahar." Sonowal added that the signing of this contract will have a multiplier effect on the viability and visibility of Chabahar port. According to him, Chabahar is not only the closest Iranian port to India but it is also an excellent port from nautical point of view. Sonowal also held a meeting with his Iranian counterpart. Located in Sistan-Balochistan province on the energy-rich Iran's southern coast, the Chabahar port is being developed by India and Iran to boost connectivity and trade ties. India has been pushing for the Chabahar port project to boost regional trade, especially for its connectivity to Afghanistan. India and Iran have projected the port as a key hub for the INSTC project. The INSTC is a 7,200-km-long multi-mode transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe. The Ministry of External Affairs (MEA) had allocated Rs 100 crore for Chabahar Port for 2024-25, underlining India's focus on connectivity projects with Iran. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/news/oneplus-nord-ce-4-lite-to-launch-soon-in-india-expected-price-specs-and-everything-we-know-so-far/articleshow/110076267.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/oneplus-nord-ce-4-lite-to-launch-soon-in-india-expected-price-specs-and-everything-we-know-so-far/articleshow/110076267.cms" target="_blank">OnePlus Nord CE 4 Lite to launch soon in India – expected price, specs and everything we know so far</a><a href="https://www.businessinsider.in/stock-market/news/aadhar-housing-finance-ipo-allotment-how-to-check-allotment-gmp-listing-date-and-more/articleshow/110071990.cms" target="_blank"></a> <a href="https://www.businessinsider.in/stock-market/news/aadhar-housing-finance-ipo-allotment-how-to-check-allotment-gmp-listing-date-and-more/articleshow/110071990.cms" target="_blank">Aadhar Housing Finance IPO allotment – How to check allotment, GMP, listing date and more</a><a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-market-up-8-5g-smartphones-account-for-over-70-of-shipments/articleshow/110002512.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-market-up-8-5g-smartphones-account-for-over-70-of-shipments/articleshow/110002512.cms" target="_blank">Indian smartphone market up 8%, 5G smartphones account for over 70% of shipments</a>

India, Iran sign pact for long-term operation of terminal at Chabahar

<ul><li>Iran drops India from the <keyword id="9570544" type="UNKNOWN" weightage="20" keywordseo="chabahar-rail-project">Chabahar rail project</keyword> citing funding delays. </li><li>The development comes on the backdrop of Iran inking a $400 billion strategic partnership with China. </li><li>The China-Iran deal may give China more access to the Indian Ocean region. </li></ul>Iran has dropped India from the Chabahar rail project. The rail line from <keyword id="190285" type="PERSON" weightage="20" keywordseo="Chabahar-port">Chabahar port</keyword> to Zahedan was going to be India’s magnum opus as the bridge between India, Iran, Afghanistan and Central Asia. Tehran’s decision has come within days of China finalising a huge $400 billion strategic partnership deal with Iran that will span over 25 years, which could shift the balance of power in the Indian Ocean in China’s favour. Tehran’s excuse The Iranian government cited funding delays from the Indian side for the $8 billion project that will run a rail line from the Chabahar port to Zahedan, which lies along the border of Afghanistan. This is a huge blow for India, which saw the port as a counterbalance to the Gwadar in Pakistan, which was built and run by China as a part of its China-Pakistan Economic Corridor (CPEC). <div type="image" title="ports_edited" msid="76963469" hostid="261" caption="&amp;lt;p&amp;gt;Sister ports of Chabahar and Gwadar&amp;lt;/p&amp;gt;"></div> “For India, an extensive economic and security pact between Iran and China raises some critical concerns,” writes the Observer Research Foundation’s (ORF) <a href="https://www.orfonline.org/expert-speak/reading-a-potential-iran-china-strategic-agreement-from-india/">Kabir Taneja</a>. The distance between Pakistan’s Gwadar port and Iran’s Chabahar ports are often referred to as ‘sister ports’ with only a distance of 172 kilometres between them. Officials told <a href="https://www.thehindu.com/news/national/iran-drops-india-from-chabahar-rail-project-cites-funding-delay/article32072428.ece">The Hindu</a> that the project will now be completed by March 2022 without India’s assistance, using $400 million from the Iranian National Development Fund. India may have dragged its feet on the project due to the fear of US sanctions The Chabahar trilateral agreement — between Iran, Afghanistan and India — was meant to serve as an alternative trade route to Afghanistan and Central Asia. Last week, Iranian Transport and Urban Development Minister Mohammad Eslami inaugurated the track-laying process for the Chabahar-Zahedan line, the first phase which will be extending to Zaranj across the border in Afghanistan. Meanwhile, Iran has been facing the US’ ‘maximum pressure’ policy in the form of crippling sanctions and military options being laid on the table. So despite several site visits by Indian Railways Construction (IRCON) engineers, India never began work on the site for the fear of attracting US sanctions on New Delhi. During the Manmohan Singh and Barack Obama era, India had already ‘zeroed out’ its oil imports from Iran leaving little else to negotiate with. The Iran-China deal and the Indian Ocean For Iran, the finalisation of the strategic partnership with China is a much-needed lifeline. The $400 billion will go a long way as investments in Iran’s oil and gas, infrastructure and transportation sectors. After a near-war situation in Ladakh, where India and China share a border, the China-Iran deal will give China more access to the Indian Ocean region. It will be connected via Gwadar, Djibouti “and possible permanent military accesses arrangement with Iran,” said Taneja.

China bags Iran’s friendship with a loan⁠ — costs India the crucial Chabahar port project

<img class="gwt-Image" src="/photo/52403447.cms" /> India has finally signed the much-awaited pact that would allow it to develop the strategic <keyword id="190285" type="UNKNOWN" weightage="100" keywordseo="Chabahar-port">Chabahar port</keyword>, which is considered to be a major breakthrough for India's trade with West Asia. Here is everything you need to know about it: 
 
1) About Chabahar 
 
The port of Chabahar, located in southeastern Iran in the Gulf of Oman, is the only Iranian port that has a direct access to the ocean. 
 
2) About the pact 
 
As per the pact, India will develop the Chabahar port and then operate it under India Ports Global, a recently formed port project investment arm of the shipping ministry, a joint venture between the Jawaharlal Nehru Port Trust and the Kandla port. $85 Million is expected to be invested in developing the two container berths that would be 640 metres long and three multi-cargo berths. 
The 10-year contract is extendable, and after 18 months, phase one of the port construction is supposed to be completed. India won’t have to guarantee any cargo for the port in the first two years, after which it will facilitate 30,000 TEUs (Twenty Foot Equivalent) of cargo at the port, a quantum that will rise to 2,50,000 TEUs by the 10th year. 
 
Also, state-run railway body IRCON International will set up a railway line at Chabahar so that goods can be moved right up to Afghanistan via the 500-km rail link between Chabahar and Zahedan that will also link Delhi to the rest of Iran's railway network. 
 
3) About its importance 
 
The port will allow India to circumvent Pakistan while transporting goods to Afghanistan via a sea-land route, which at present isn’t possible because of Pakistan’s concerns about India’s dominance. 
 Also, the <keyword id="3375131" type="UNKNOWN" weightage="100" keywordseo="International-North-South-Transport-Corridor">International North-South Transport Corridor</keyword>, of which both are initial signatories along with Russia, will also pick momentum because of this pact. The objective of this corridor is to increase trade connectivity between major cities of these countries, like Mumbai, Moscow, Tehran, Baku, and Astrakhan. 
 
<a href="https://www.facebook.com/narendramodi/photos/a.10150164299700165.421791.177526890164/10157045416880165/?type=3&amp;theater">Image source</a>

Here is how India will gain from the strategic pact for developing Chabahar Port

<ul><li><keyword id="41896" type="COUNTRY" weightage="20" keywordseo="Iran">Iran</keyword>’s deputy ambassador warned that Iran will withdraw the ‘special privileges’ it gives <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> if the country lowers its import of <keyword id="726417" type="PERSON" weightage="20" keywordseo="iranian-oil">Iranian oil</keyword>. </li><li>He also criticised India for not making investments in the expansion of Chabahar port in Iran as promised with the signing of a pact in May 2016. </li><li>The warning from Iran came after Trump withdrew <keyword id="6355055" type="UNKNOWN" weightage="20" keywordseo="usa">USA</keyword> from the <keyword id="154476" type="PERSON" weightage="20" keywordseo="Iran-nuclear-deal">Iran nuclear deal</keyword> and called out to the Asian countries to bring their Iranian <keyword id="587694" type="PERSON" weightage="20" keywordseo="oil-import">oil import</keyword> to “zero”. </li></ul>On Tuesday, Iran’s deputy ambassador and charge d’affaires, Massoud Rezvanian Rahaghi, clearly <a href="https://thewire.in/diplomacy/iran-india-promised-investments-chabahar">announced</a> that India will lose its ‘special privileges’ if it cuts down on its import of Iranian oil or if it tries to replace the oil with imports from Saudi Arabia, Russia, Iraq, the US and others. He further added that if India does so, “It may have to revert to dollar-denominated imports which mean higher CAD (Current Account Deficit) and deprivation of all other privileges Iran has offered to India”. He made this statement during a seminar on ‘emerging challenges and opportunities in the global diplomacy and its impact on bilateral ties with India’. After Iraq and Saudi Arabia, Iran is India's third-largest oil supplier. In return, India buys <a href="https://www.theguardian.com/news/datablog/2012/feb/06/iran-oil-exports-destination">13%</a> of the total exported crude oil from Iran, which is a huge proposition in itself. He further took the seminar as an opportunity to criticise India for not fulfilling its promise of making investments in the expansion of the Chabahar port in Iran. The port is considered to be a gateway to trade opportunities between the two countries and India had signed a pact in May 2016 promising to invest. This reaction from Iran comes as a response to the <a href="https://economictimes.indiatimes.com/industry/energy/oil-gas/us-wants-india-to-stop-importing-oil-from-iran-by-november/articleshow/64758631.cms">US policy</a> which called out countries to start reducing the import of oil from Iran and bring it to zero by 4 November. The failure to do so would result in the imposition of sanctions from the US. The policy was announced after Trump pulled out from the Iran nuclear deal - the Joint Comprehensive Plan of Action (<a href="https://www.hindustantimes.com/india-news/iran-criticises-india-for-not-making-promised-investments-in-chabahar-port/story-0yRzu8WCt7aIGOjV8UuXfL.html">JCPOA</a>) - which had been signed by Obama in 2015. Iran called US’ approach a “selfish” one and said that it must abandon “its policy of resorting to threats or use of force”. Referring to the US sanctions on oil import from Iran, Rahaghi made it a point to mention that his country has been a reliable energy partner for India and has always followed a “rationale pricing” of oil which ensures the interest of both, consumers and suppliers. He also called India to “work together to immunise the relationship between the two countries” and proposed the adoption of necessary instruments and mechanisms like setting up banking relations, opening new transaction routes and helping each other’s markets and business communities. He further went on to suggest that a <a href="https://timesofindia.indiatimes.com/business/india-business/iran-criticises-india-for-not-making-promised-investments-in-chabahar-port/articleshow/64937334.cms">regional dialogue</a> forum should be set up in the Persian Gulf and West Asia to resolve terrorism and regional crises. According to the data from shipping and industry sources, India's oil imports from Iran declined by 15.9 % in June which was the first month after the US gave its ultimatum. However, the Ministry of External Affairs has maintained that India would consult “all stakeholders” in the matter to ensure energy security.

Will withdraw ‘special privileges’ if oil imports are lowered under US pressure, Iran warns India

<ul><li>On the last day of 2018, US President Donald <keyword id="6354862" type="UNKNOWN" weightage="20" keywordseo="trump">Trump</keyword> signed the Asia Reassurance Initiative Act. </li><li>Under the act, around $1.5 billion worth of funding will be channeled into improving US ties with partners in the region for the next five years. </li><li>While the act frames a comprehensive strategy for the US in the Asia, it singles out <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> as an important military partner with a key role in maintaining peace and stability in the region. </li><li>The act also highlights threats from <keyword id="1334" type="LOCATION" weightage="20" keywordseo="China">China</keyword>, citing the country’s “illegal construction and militarization of artificial features in the South China Sea” as well as its “coercive economic practices.” </li></ul> The US President Donald Trump signed a number of acts on the last day 2018. A particularly noteworthy one, with respect to India, was the <a href="https://www.congress.gov/bill/115th-congress/senate-bill/2736/text#toc-H00AC660EEB9C435D8D91F69FBF988311">Asia Reassurance Initiative Act</a> (ARIA). The US Senate passed the act in the first week of December, with the US Congress following suit in the second week. Under the act, around $1.5 billion worth of funding will be channeled into improving US ties with partners in the region for the next five years. It is likely to put the fears of a US retreat from the region to rest. While the act frames a comprehensive strategy for the US in the Asia, it singles out India as an important military partner with a key role in maintaining peace and stability in the region. It also calls for a strengthening in trade and diplomatic ties with India and well as increased exchange of military technologies and information. The US reiterated its commitment to all bilateral pacts signed with India, including the 2012 United States-India Defense Technology and Trade Initiative and the 2015 Joint Strategic Vision for the <keyword id="1551039" type="PERSON" weightage="20" keywordseo="Indo-Pacific">Indo-Pacific</keyword> and Indian Ocean Region. The act also stressed the importance of the Quadrilateral security dialogue between the US, Australia, India, and Japan. In September last year, India signed the the <a href="https://www.businessinsider.in/india-and-the-us-just-signed-a-landmark-military-intelligence-sharing-agreement/articleshow/65716448.cms">Communications Compatibility and Security Agreement (COMCASA),</a> which facilitates the sharing of military intelligence with the US. Under the pact, India will be given access to a host of technologies like advanced drones and communication platforms. Of course, since this is an act about the US’s strategy in Asia, China receives significant mention given the government’s fears about China upsetting the current power order in the world. The act highlights the country’s “illegal construction and militarization of artificial features in the South China Sea” as well as its “coercive economic practices,” the latter referring to China’s trade policies, as threats. In a clause that could prove controversial, it also recommends increasing the sale of arms to Taiwan to help defend it from possible incursions by China. The Trump administration’s foreign policy stance has largely been transactional -- ‘Help us and we will help you’. It’s no different with respect to India. The ARIA makes it clear that the US requires India’s help to counter China’s influence in Asia if the two are to become better friends. As 2019 progresses, India will look to the US for a number of concessions, such as the lifting of trade restrictions, a go-ahead for the Chabahar Port project in Iran and an exemption from sanctions for buying a missile shield system from Russia. SEE ALSO: <a href="https://www.businessinsider.in/india-and-the-us-just-signed-a-landmark-military-intelligence-sharing-agreement/articleshow/65716448.cms">India and the US just signed a landmark military-intelligence sharing agreement</a> <a href="https://www.businessinsider.in/senior-chinese-military-officer-calls-for-attacks-on-us-ships-in-the-south-china-sea/articleshow/67029057.cms">Senior Chinese military officer calls for attacks on US ships in the South China Sea</a> <a href="https://www.businessinsider.in/heres-what-trump-had-to-say-about-india-at-the-un-general-assembly/articleshow/65960850.cms">Here’s what Trump had to say about India at the UN General Assembly</a>

The US government is enforcing an act that calls for a stronger partnership with India in order to ensure peace and stability in the Indo-Pacific region

<img class="gwt-Image" src="/photo/52400976.cms" /> 
 
PM Modi’s two-day visit to Iran has resulted in an agreement stating that India will be investing billions of dollars in setting up various industries like aluminum smelter and urea plants in Iran's Chabahar free trade zone. A pact has also been signed to operate a strategic port on the Iran’s southern coast, which would allow India to access Afghanistan, Russia and Europe without going through Pakistan. 
 "The distance between Kandla and the Chabahar port is less than the distance between New Delhi and Mumbai, and so what this agreement does is to enable us quick movement of goods first to Iran and then onwards to Afghanistan and Russia through a new rail and road link," Road Transport, Highways and Shipping Minister <keyword id="26680" type="PERSON" weightage="100" keywordseo="Nitin-gadkari">Nitin Gadkari</keyword> said. 
 
"Over Rs 1 lakh crore investment can happen in Chabahar free trade zone," he added. 
 
He further added that Iran has cheap natural gas and power which would allow Indian firms to build a 0.5-million tonne aluminium smelter plant and urea manufacturing units in the country. 
 
"We spend Rs 45,000 crore annually on urea subsidy, and if we can manufacture it in the Chabahar free trade zone and move it through the port to Kandla and onward to hinterland, we can save that amount," he explained. 
 
Railway PSU IRCON will also be building a rail line at Chabahar so that goods can be moved right up to Afghanistan. 
 
As of now, India can't enter Afghanistan, and thus the rest of Central Asia via land because Pakistan sees India's expansive diplomacy in the region as a threat. 
 
File Photo | <a href="http://www.indianlink.com.au/wp-content/uploads/2015/07/modi-iran.jpg">Image source</a>

India to invest 1 lakh crore in Iran so that it can enter Central Asia without stepping into Pakistan

<img class="gwt-Image" src="/photo/58110373.cms" /> India and Russia could be connected to each other via a multi-mode network for carrying freight via the International North South Transportation Corridor (<keyword id="2075269" type="ORGANIZATION" weightage="100" keywordseo="INSTC">INSTC</keyword>). The corridor would connect the two countries via Europe and Iran. 
 
Also read: <a href="http://www.businessinsider.in/India-deal-for-Chabahar-Port/articleshow/52402008.cms">Here is how India will gain from the strategic pact for developing Chabahar Port</a> 
 
A dry run of container movement via this green corridor (smooth customs facilitation) will soon be conducted, to honour the 70th anniversary of Indo-Russian diplomatic ties on April 13. 
 When used, INSTC will significantly reduce the time taken and cost for transport of goods between India and <keyword id="833829" type="CITY" weightage="100" keywordseo="Eurasia">Eurasia</keyword>, thus increasing economic activities between India and the resource-rich markets of Russia and Europe. 
 
It was after India decided to join international customs convention TIR following approval from the cabinet that the corridor has moved to being implemented. 
 Delhi is working on INSTC as part of connectivity initiatives along with the implementation of China's <keyword id="3316632" type="UNKNOWN" weightage="100" keywordseo="One-Belt-One-Road">One Belt One Road</keyword> strategy. 
 
Prime Minister <a href="http://www.businessinsider.in/topic/Narendra-Modi">Narendra Modi</a>, who is set to visit St Petersburg for International Economic Forum in June, might also visit the Astrakhan entry point of INSTC in Russia. 
 
Talking of INSTC, it is a 7,200-km long network which would have rail, road and water routes. By reducing the travel costs and time, it is all set to give a major boost to trade between Russia, <a href="http://www.businessinsider.in/politics/India-Iran-unite-on-combating-terror-and-radicalism/articleshow/52402271.cms">Iran</a>, Central Asia, India and Europe. 
 
Also read: <a href="http://www.businessinsider.in/India-Iran-ties/articleshow/52400926.cms">India to invest 1 lakh crore in Iran so that it can enter Central Asia without stepping into Pakistan</a> 
 
(Image source Youtube)

A multi-mode network for moving freight between India and Russia could soon be a reality

<img class="gwt-Image" src="/photo/48318752.cms" /> The recent pact between Iran and the US, along with the <keyword id="6355110" type="ORGANIZATION" weightage="20" keywordseo="European-Union">European Union</keyword> (EU) and other western countries, is hailed as US President <keyword id="15962" type="PERSON" weightage="20" keywordseo="Barack-Obama">Barack Obama</keyword>’s biggest diplomatic victory. The western countries have managed to coerce Iran to agree to a deal that is seen as the once-belligerent Tehran conceding defeat in its efforts to combat the US’ attempts to strangle it economically for nursing nuclear ambitions. 
Under the deal, Iran has agreed to limit uranium enrichment to only one facility by: 
<ul>
	<li>
		Redesign a plant that refines plutonium heavy-water</li>
	<li>
		Converting another uranium enrichment site into a facility for production of medical isotopes</li>
	<li>
		Cutting down the number of centrifuges enriching uranium from 19,000 to about 6,000.</li>
</ul> More importantly, it has acceded to a rigorous inspection of its nuclear facilities in return for lifting the US, EU and UN sanctions. While the deal—started after the election of <keyword id="6374564" type="UNKNOWN" weightage="20" keywordseo="Hassan-Rouhani">Hassan Rouhani</keyword> as Iranian President in 2013 and mediated by Sultanate of Oman—helped restore <keyword id="108527" type="EVENT" weightage="20" keywordseo="Diplomatic-Relations">diplomatic relations</keyword> between the US and Iran, which have been hampered since the 1979 Iranian Revolution. It has significant implications for countries in Middle East and Asia, especially India. 
 
As a major net importer of oil, India has already benefited from <a href="http://edition.cnn.com/2015/07/14/politics/iran-nuclear-deal-highlights/?iid=EL">the US-led nuclear deal</a> with Tehran. Oil prices have declined in recent days, driven largely by expectations of more Iranian crude hitting the market (India saves nearly $1 billion in import costs for every dollar drop in global crude prices). 
 In fact, India has been preparing for the deal—Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> recently met with Rouhani on the sidelines of the <keyword id="157954" type="ORGANIZATION" weightage="20" keywordseo="Shanghai-Cooperation-Organisation">Shanghai Cooperation Organisation</keyword> summit in Russia’s Ufa, where he invited Rouhani to visit India and expressed his desire to visit Iran. His desire to travel to Iran is seen as part of a calibrated strategy to visit the Middle East neighbourhood, including Israel, Palestine, Jordan and Turkey, in the second year in power after visiting countries in the immediate neighbourhood and Asia-Pacific besides <keyword id="52079" type="ORGANIZATION" weightage="20" keywordseo="G-7">G-7</keyword> partner countries within a year of coming to power. 
 
The US-Iran deal will have significant impact on the energy and economic ties between Indian and Iran as India continues to be the world’s fourth largest energy consumer and imports more than three-quarters of its oil and an increasing amount of its natural gas. 
 
A few years ago, 17% of Indian oil imports were from Iran, which had become the country’s second largest supplier. Last year, Iran was seventh on the list, supplying only 6% of Indian oil imports. 
 
The enhanced volume oil that is expected to flow to India following the lifting of sanctions on Iran will help the country meet its burgeoning fuel needs as it embarks on an ambitious journey to solidify its position as the top economic power in the region along with China. This is particularly significant considering sanctions on the Iranians since 2003 have forced India to increasingly look at Iraq, Kuwait, the UAE and Saudi Arabia for oil imports. 
 The <keyword id="6360789" type="ORGANIZATION" weightage="20" keywordseo="Modi-Government">Modi government</keyword>, which benefitted a lot from falling oil prices (when Modi came to power, the price for crude oil was <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=105164">$108.05 a barrel</a> which declined to <a href="http://pib.nic.in/newsite/PrintRelease.aspx?relid=123232">$57.19 a barrel</a> on the day of the Iran-US deal), hopes that a possible oil glut following the re-entry of Iranian oil in global oil market—which has already inundated with increased Shale production in the US—will greatly benefit Indian oil refining firms. 
 
Considering China’s role in developing and modernising the port of Gwadar in Pakistan and with Pakistan not a feasible transit option, India sees the potential for Iran to serve as a transit route to Afghanistan and Central Asia. This has enhanced India’s desire to invest in upgrading the Iranian port of Chabahar. While talks over Chabahar have been halted over and over again, the nuclear deal has cleared crucial political and financial obstacles and India expects the port to be operational by <a href="http://www.ndtv.com/india-news/india-iran-strategic-chabahar-port-to-be-operational-by-december-2016-wii-give-access-to-afghanistan-765599">the end of 2016</a>. The deal may also lead to fruitful discussions over developing another <a href="http://pragati.nationalinterest.in/2015/03/india-and-iran-its-not-just-energy-stupid/">transit corridor</a> through Iran to Europe and Russia. 
 
The deal will also enhance the relation between India and the US which has been under strain of late as the US has been looking askance at India’s relationship with Iran and especially its oil imports. Indian energy firms like ONGC have also found their financial interests being hampered due to American sanctions as they have made considerable investments in Iran. 
 
However, <a href="http://www.businessinsider.in/searchresult.cms?query=Iran+deal">the dea</a>l is also going to hurt India—as India refused to fully take part in the US-led sanctions on Iran, it has emerged a key trading partner of Tehran in the recent past with Indian corporates making a windfall (exports to Iran nearly doubled to $3.3 billion between 2009 and 2013). However, once the sanctions are lifted, Indian businesses will begin to face stiff global competition in doing business in Iran. For instance, India has been a major exporter of automobile components, tools, motors and chemicals to Iran. Now Indian exporters will have to compete with Eastern European manufacturers, who produce low-end products like spanners, hand tools and auto parts. The fall in the value of euro, over the last few years, is expected to further enhance the competitiveness of European manufacturers. 
(Image: The Economic Times)

You Searched For "Chabahar pact" and got 9 results

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