Chabahar aims to expand more rapidly in post-war era’: Iran envoy

NEW DELHI: As bombs fall and sanctions sweep across West Asia, Iran says its economic dealings with India will remain stable during the war and once the situation stabilizes. Mohammad Fatali, Ambassador of Iran to India said toy Wartime disruptions were “just speed bumps” and Tehran’s “future prospects for Iran’s economic relations with India – even in wartime and especially in the post-war period – remain positive and broad”. “Economic cooperation between our two countries is based on common interests and trust and has great potential for further development,” Fatali said, putting the spotlight on chabahar port project, he added that it was a key project in the relationship. “In this regard, Chabahar Port, as a strategic project, plays a key role in strengthening trade and transit links between Iran, India and the region,” he said.

Chabahar, on Iran’s southeastern coast, has long been New Delhi’s strategic bypass to landlocked Afghanistan and Central Asia, bypassing a chokepoint in Pakistan, which does not allow Indian goods to transit overland. The 10th-century Persian scholar and writer Al-Biruni described the coastal area near the town of Chabahar (then called Tiz or Tis) in his Kitab Tarikh Al-Hind as “the entrance or starting point of the Indian coast”.For Tehran, the port is a lifeline to global reintegration, breaking decades of Western isolation. Highlighting its regional hub, Fatali said: “We believe Chabahar can become an important hub connecting Central Asia to open waters.”The history of the Chabahar Port project dates back to the 1970s, when Mohammad Reza Pahlavi, the last king of Iran, proposed building it into a deep-sea hub in the Gulf of Oman. Work on the project progressed slowly during Iran’s 1979 Islamic Revolution and subsequent leadership changes. In the 1980s, when the Iran-Iraq war left Iran’s Persian Gulf shipping lanes vulnerable, Iran doubled down on its focus on diverting its trade and expanding Chabahar.When India began discussing developing the port around 2003, it primarily meant bypassing Pakistan and entering Afghanistan and Central Asia. But it is also a response to the initial construction of Pakistan’s Gwadar port under Beijing’s $62 billion flagship China-Pakistan Economic Corridor (CPEC).The partnership was formalized through a memorandum of understanding in 2015, with up to $500 million pledged during Indian Prime Minister Narendra Modi’s 2016 visit to Tehran. The deal, which is due to be renewed for 10 years in 2024 (previously renewed annually), commits India to a direct land-sea corridor to Central Asia and beyond, vital for trade in minerals, grains and energy.Through Chabahar, goods can be transported from Indian ports to Iran and then further inland via road and rail transport into Russia, Central Asia, and Europe.India has invested in port equipment and operations, while Iran has worked to expand connectivity from ports to its internal transport network. Progress has been uneven due to sanctions on Iran and delays in infrastructure development.In the current phase of the port, India has committed over $350 million in core investments and credit lines including equipment, berths, and the proposed next phase involves additional berths and rail connectivity, with additional funding expected to be required. The Iranian envoy’s statement comes at a crucial time as India weighs its options under US sanctions on Iran. The April 26, 2026 waiver deadline is approaching.Amid continued uncertainty in the regional security environment, Fatali’s comments signaled optimism and reassurance that the project would remain on track and pick up pace once it is concluded, despite ongoing geopolitical tensions.