Premium
This is an archive article published on August 24, 2012

Tehran track

Iran’s consent to the Chabahar port presents India with an opportunity and a dilemma

Ahead of Prime Minister Manmohan Singh’s visit to Tehran next week,the Iranian consent to Indian investment in the Chabahar port has thrown into sharp relief New Delhi’s tortuous balancing act on Iran. The prime minister will be in Tehran for the NAM summit and all eyes will be on the bilateral engagement. This visit comes amidst Iran’s growing confrontation with the US and the West as well as with the Arab states of the Gulf. Therefore,it would not be a surprise if Iran were to use the summit to mobilise support for its defiance of the US. For India,the dilemma lies in the political signal the investment will send out at this juncture.

The Chabahar port will provide Delhi with access to Afghanistan and Central Asia,bypassing Pakistan,which blocks India’s land routes. The idea dates back to the visit of former Iranian President Mohammad Khatami to India in 2003 and a trilateral understanding reached then between Delhi,Tehran and Kabul. The port will link western Afghanistan with the Iranian coast via the Zaranj-Delaram road constructed by India on the Afghan side and a road constructed by the Iranians on their side. Chabahar had languished since 2003. But,seeking to break out of international isolation,Iran is now eager to revive the project and draw India into it — at a time when India’s payment in rupees for Iranian oil has made project exports to Iran attractive.

The strategic and economic importance of Chabahar for India is very real. However,having just been put on the US list of countries exempted from the Iran sanctions,India would also want to stay clear of US sanctions. Nor would it want to jeopardise its large economic interests in the Gulf Arab states by tilting towards Iran. Above all,Afghanistan’s reported reluctance to press ahead with the trilateral venture has rightly made Delhi pause. In this case,India has no choice but to carefully calibrate the pursuit of its multiple interests in the region.

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