India & Iran are moving ahead on signing a long-term contract outlining New Delhi’s investments in the strategically located Chabahar Port. In the changing geopolitical contours and Chinese advances, India is keen to complete the construction of the port located in southern Iran at the earliest which is to be linked to the International North-South Corridor.
According to a media report, the Iranian Ports and Maritime Organization and India had multiple talks on existing disputes regarding the development of the port. After resolving all issues, the long-term deal will be signed. The port is said to provide Mumbai with a direct link to the landlocked Central Asian Countries as the Chabahar port is strategically located to some of the business trade routes in the world and can act as a transhipment hub.
Several issues had come up between the two countries which have resulted in a delay in the construction of the port. After a few meetings, India and Iran are re-working their ties for the betterment of both countries. Besides that, the RBI has also given a nod for using the rupee payment for imports.
In 2018-19, bilateral trade between New Delhi and Tehran stood at $17.03 billion. However, after a continuous fall—in 2021-22, it was $1.9 billion. The two countries are currently working on boosting non-oil trade.