India and Iran have signed a 10-year contract to develop and operate the Iranian port of Chabahar, which New Delhi envisages as a strategic trade route to landlocked Central Asian republics.
India said the deal has unlocked new avenues for trade.
The agreement was signed Monday in Iran’s Chabahar town by India’s Shipping Minister, Sarbananda Sonawal and Iran’s urban development minister Mehrdad Bazrpash.
“Chabahar Port’s significance transcends its role as a mere conduit between India and Iran. it serves as a vital trade artery connecting India with Afghanistan and Central Asian countries,” Sonawal said after the signing.
The agreement gives India 10-year access to use the port.
“We are pleased with this agreement, and we have full trust in India,” Iranian minister Bazrpash said.
India began helping to develop Chabahar port by building new cargo berths and terminals in 2016 after Washington eased sanctions on Iran – they were reimposed by the Trump administration in 2018.
After India and Iran signed the 10-year deal, U.S. State Department spokesperson, Vedant Patel, told reporters that U.S. sanctions on Iran remain in place, and that Washington will continue to enforce them.
