India Fast-Tracks Chabahar Port Development to Boost Central Asia Trade Links

India is pushing forward with plans to develop Iran’s Chabahar Port as its main maritime hub for trade with Afghanistan and Central Asia, reducing reliance on the heavily trafficked Bandar Abbas port. This strategic shift was confirmed by India’s shipping and waterways secretary, citing increased investments in rail and road connectivity to support the port’s growth.

Located on Iran’s southeastern coast, Chabahar offers India an alternative trade corridor that bypasses Pakistan and the China-Pakistan Economic Corridor (CPEC). With geopolitical tensions rising in West Asia and frequent disruptions in the Strait of Hormuz, the port presents a stable, long-term solution for India’s regional trade and logistics strategy.

The port’s development aligns with India’s Connect Central Asia policy and enhances export logistics through more efficient multimodal corridors. Over the past year, Chabahar has seen increased cargo traffic from India, with further integration into Iran’s national transport network planned.

A long-term agreement signed by India to operate Chabahar signals a deep commitment to its transformation into a full-service transit hub. Investments are now focused on expanding terminal infrastructure, container handling, and resilience to weather-related disruptions.

From a sustainability perspective, Chabahar reduces carbon-intensive shipping detours and supports India’s goal of building green logistics corridors. It also strengthens trade routes under the International North-South Transport Corridor (INSTC), linking South Asia with Europe. Despite ongoing geopolitical uncertainties, India’s accelerated focus on Chabahar marks a significant shift in regional trade dynamics and reinforces its growing presence in Central Asia.