Giving a boost to economic partnership in the post-sanctions era, India signed a 'milestone' pact with Iran to develop strategic Chabahar port in southern coast of Iran that will give India easy access to landlocked Afghanistan and Europe, bypassing its archrival Pakistan. It was the most significant of the 12 agreements the two countries signed during Indian Prime Minister Modi’s two-day visit. India and Iran also agreed to cooperate on combating radicalism and terror.
India committed around $500 million for the important Chabahar port, which will serve as a ‘point of connectivity' between India, Afghanistan, Commonwealth of Independent States (CIS) countries and East Europe. The trilateral agreement on Transport and Transit Corridor, linked to the Chabahar port development, was signed by India, Iran and Afghanistan in the presence of Modi, Rouhani and Afghan President Ashraf Ghani.
Calling the project “an important milestone,” the Indian Prime Minister Narendra Modi said it is a “major effort to boost economic growth in the region. We are committed to take steps for early implementation of the agreement signed.” The agreements, aimed at further deepening India-Iran ties in diverse fields, covered areas of economy, trade, transportation, port development, culture, science and academic cooperation.
The other key agreement signed were a contract for development of Phase I of the Chabahar port on the southern coast of Iran by an Indian joint venture, setting up of an aluminium plant and another on laying a railway line to give India access to Afghanistan and Central Asia. Chabahar port, located in the Sistan-Balochistan Province on the energy-rich Persian Gulf nation's southern coast, lies outside the Persian Gulf and is easily accessed from India's western coast. India is also eyeing Chabahar free trade zone as a viable option for investment by its industries in urea, aluminium smelter, etc