Chabahar Port featured prominently in discussions between Prime Minister Narendra Modi and the Iranian President during last year's BRICS summit in South Africa in August, as well as in November, during their telephonic exchange on the Gaza crisis.
The INSTC is India's grand plan to cut short the time taken for trade shipments to reach Russia and Europe, and enter the central Asian markets, and vice versa.
A key central Asian market, Uzbekistan and India have an annual trade turnover of only $315 million as of 2021-22. But both nations have resolved to increase the bilateral trade to at least $1 billion over the next two years.
The 7200-km International North South Transport Corridor is a multination trade route developed by India to cut transit time for shipments to Russia, Central Asia and India’s prized markets in the European Union. But it has faced repeated challenges, and the latest Ukraine crisis is the biggest one so far.
The Taliban takeover of Afghanistan has signaled more hurdles for India's ambitious International North South Transport Corridor project, that cuts through Iran, Azerbaijan and Russia to establish a quicker and cheaper trade route between India, Europe and Central Asia.
India and Iran had signed an agreement four years ago to construct a 628-kiolmetre railway line from the strategically vital Chabahar port to Zahedan city, along the border with Afghanistan.
The Chabahar port -- being jointly developed by India, Iran and Afghanistan -- is considered a gateway to golden opportunities for trade by the three countries with central Asian nations. It is located on the Indian Ocean in the Sistan and Baluchistan province of Iran
India and Afghanistan today called for expediting a trilateral pact using Chabahar port in Iran to boost regional connectivity.
Indian Prime Minister Narendra Modi on Monday pledged up to USD 500 million to develop the Iranian port of Chabahar, to try to give India trade access to Iran, Afghanistan and Central Asia. The route is currently all but blocked by Pakistan, long at odds politically with India.
The announcement was part of a number of agreements to boost economic ties with Iran that Modi signed with President Hassan Rouhani, during an official state visit.
India and Iran agreed in 2003 to develop a port at Chabahar on the Gulf of Oman, near Iran's border with Pakistan, but the venture has made little progress due to Western sanctions on Iran.