Union Minister of Ports, Shipping and Waterways, Mr Sarbananda Sonowal, has said that the signing of the long-term main contract of 10 years for the development of Shahid Beheshti Port Terminal at Chabahar Port, Iran, will reduce transport time and costs between India and Europe using a multimodal approach. India is playing a major role in the development of Chabahar Port, which is a key to the International North-South Transport Corridor (INSTC). The INSTC aims to reduce transport time and costs between India and Europe using a multimodal approach (ship, rail and road), primarily connecting India, Iran, Azerbaijan, Russia and other Eurasian countries. Chabahar Port and the INSTC have also become a priority for India because of the raging Israel-Hamas war.
The agreement for this India-Iran flagship project was signed between IPGL & Ports & Maritime Organization of Iran here on Monday.
This is a realisation of the Prime Minister’s vision of enhancing global trade by providing an alternate trade route to India for Iran, Afghanistan, Eurasia and Central Asian Republics, the Minister added while interacting with the media.
During the G20 Summit held in New Delhi in 2023, an India-Middle East-Europe Economic Corridor (IMEC) was proposed that aims to bolster economic development by fostering connectivity and economic integration between Asia, the Persian Gulf and Europe. The IMEC comprises an Eastern Corridor connecting India to the Gulf region and a Northern Corridor connecting the Gulf region to Europe. It will include a railway and ship-rail transit network and road transport routes.
Mr Sonowal said that both IMEC and INSTC represent India’s efforts to diversify trade routes, reduce dependence on the choke points and enhance economic ties with key partners in the Middle East, Europe, and Eurasia. Their success depends on overcoming geopolitical challenges, securing investments and ensuring efficient implementation.
Sanctions warning
Meanwhile, the United States has warned that anyone considering business deals with Tehran needs to be aware of the potential risk of sanctions. The US State Department Principal Deputy Spokesperson, Vedant Patel, however, also said that it will let the Indian government speak on its foreign policy goals, as per a report.
source: Exim News Service: Tehran, May 14