India works to protect Chabahar Port after waiver ends

The Chabahar Port in Iran has emerged as a cornerstone of India's geopolitical and geoeconomic strategy, particularly in its pursuit of enhanced connectivity with Afghanistan and Central Asia. The recent news regarding India's efforts to protect its stake and operational control over the port, especially with the anticipated end of US sanctions waiver in April, underscores its critical importance.

**Background Context and Historical Trajectory:**

India's interest in Chabahar dates back to 2003 when it first proposed developing the port. The primary motivation was to establish a reliable sea-land route that would bypass Pakistan, providing India direct access to landlocked Afghanistan and the resource-rich Central Asian republics. Pakistan's consistent denial of transit trade routes to India, particularly for goods destined for Afghanistan, made an alternative imperative. This strategic necessity gained momentum, culminating in a landmark trilateral agreement between India, Iran, and Afghanistan in May 2016. Under this agreement, India committed to developing two berths at the Shahid Beheshti terminal of Chabahar Port, investing approximately $500 million, and providing a credit line of $150 million for port equipment. India Ports Global Limited (IPGL) was tasked with the operational responsibilities.

**The Current Situation and What Transpired:**

Following the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in 2018, the US reimposed stringent sanctions on Iran. However, Chabahar Port received a crucial waiver from these sanctions, primarily due to its perceived humanitarian role in facilitating aid and trade to Afghanistan. This waiver allowed India to continue its development and operational activities at the port without fear of secondary sanctions. The impending expiry of this waiver in April presents a significant challenge. India is now actively developing an "innovative strategy," reportedly involving collaboration with a regional Iranian firm, to maintain its operational control and safeguard its substantial investments and strategic interests. This proactive approach aims to find a workaround that complies with international regulations while ensuring the port's continuity.

**Key Stakeholders and Their Motivations:**

1. **India:** The primary stakeholder, driven by strategic autonomy, economic connectivity, and regional influence. India Ports Global Limited (IPGL) is the operational arm. India seeks to secure an alternative trade route, enhance its energy security, and counter the growing influence of China's Belt and Road Initiative (BRI) in the region, particularly the Gwadar Port in Pakistan. This aligns with India's 'Act West' policy.

2. **Iran:** The host nation, keen on leveraging Chabahar for its own economic development, especially under the burden of international sanctions. Iran views India as a reliable partner and the port as a gateway to Central Asia, boosting its transit revenues and regional standing.

3. **Afghanistan:** A critical beneficiary, as Chabahar provides it with a viable and cost-effective sea access for trade, reducing its dependence on Pakistan and fostering economic stability. This has significant humanitarian implications as well.

4. **United States:** The sanctioning authority. While initially granting a waiver for humanitarian reasons, its stance on a continued exemption is uncertain, reflecting its broader policy towards Iran.

5. **Regional Iranian Firm:** The proposed new collaborator, which would potentially help India navigate the sanctions regime by providing a localized operational framework.

**Significance for India:**

Chabahar's importance for India spans economic, strategic, and geopolitical dimensions. Economically, it unlocks direct trade routes to Afghanistan and Central Asia, reducing transit costs and time. It provides access to markets for Indian goods and secures a pathway for natural resources from Central Asia. Strategically, Chabahar is a direct counter to China's Gwadar Port in Pakistan, located just 72 km away. It enhances India's naval reach and influence in the Arabian Sea and the broader Indian Ocean Region, critical for maritime security and trade. Geopolitically, it strengthens India's 'Act West' policy, deepening ties with Iran and Central Asian nations, fostering regional stability, and projecting India as a reliable partner in infrastructure development. The port is also a vital entry point for the International North-South Transport Corridor (INSTC), a multi-modal network aimed at facilitating freight movement between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia, and Europe.

**Future Implications and Constitutional/Policy Context:**

India's ability to successfully implement its new strategy to maintain control over Chabahar will be a test of its diplomatic prowess and strategic resilience. Success would solidify India's position as a key player in regional connectivity and trade, reinforcing its strategic autonomy amidst complex geopolitical pressures. Failure, conversely, could lead to significant economic and strategic setbacks, undermining years of investment and effort. The project underscores India's commitment to multilateralism and regional cooperation, a key tenet of its foreign policy. While no specific constitutional article directly governs this port project, the Executive's power to enter into international agreements (derived from **Article 73** of the Constitution, read with the Union List's entries on 'Foreign Affairs' and 'Entering into treaties and agreements with foreign countries') forms the basis for such ventures. The project aligns with India's broader foreign trade policy objectives, its 'Act West' foreign policy initiative, and the vision articulated in **Maritime India Vision 2030** for enhancing port infrastructure and regional connectivity. The **International North-South Transport Corridor (INSTC)** is a crucial policy framework directly linked to Chabahar, aiming to integrate it into a larger Eurasian trade network. The outcome of India's efforts will significantly impact the future of INSTC and India's vision for a connected and prosperous extended neighborhood.