What is the significance of India’s 10-year agreement with Iran regarding Chabahar Port?
Show answer & explanation
Correct answer: A
Explanation
Correct Answer
It grants India operational control over the port
Explanation
The long-term 10-year agreement signed between India and Iran is highly significant because it grants India long-term operational control over a key terminal at the strategic Chabahar Port. Under this contract, India's state-owned India Ports Global Limited (IPGL) will manage and operate the Shahid Beheshti terminal at the port.
Located on Iran's southeastern coast in the Gulf of Oman, Chabahar Port serves as a crucial transit hub. The agreement is a geopolitical milestone for India as it secures a reliable sea-land route to access landlocked Afghanistan and the broader Central Asian region, completely bypassing Pakistan. It also acts as a critical ocean gateway for the International North-South Transport Corridor (INSTC) and offers a strategic counterweight to Pakistan’s Gwadar Port, which is heavily backed and managed by China.
Key Points
The agreement involves a commitment by India to invest around $120 million in equipping the terminal alongside an additional $250 million credit line for port infrastructure development. By ensuring institutional permanence for 10 years, it encourages global shipping lines and Indian traders to utilize this alternative trade corridor confidently.
Important Questions and Answers
Question: Which Indian state-owned entity has been officially designated to manage and operate the Shahid Beheshti terminal at Chabahar Port?
Answer: India Ports Global Limited (IPGL).
Question: By developing Chabahar Port, which landlocked neighbor did India successfully establish a direct trade route with by completely bypassing terrestrial passage through Pakistan?
Answer: Afghanistan.