How Iran could benefit from Chabahar Port deal with India

India has been reluctant to move ahead with its plans for Chabahar due to US sanctions, despite an exemption.
The cargo ship Inter Sydney, flying under the flag of Saint Vincent and the Grenadines, sails through the Shahid Beheshti Port in the southeastern Iranian coastal city of Chabahar, on the Gulf of Oman, during an inauguration ceremony of new equipment and infrastructure on Feb. 25, 2019.
The cargo ship Inter Sydney, flying under the flag of Saint Vincent and the Grenadines, sails through the Shahid Beheshti Port in the southeastern Iranian coastal city of Chabahar, on the Gulf of Oman, during an inauguration ceremony of new equipment and infrastructure on Feb. 25, 2019. - ATTA KENARE/AFP via Getty Images
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Iran and India signed a deal on Monday to develop the Chabahar Port, a long-awaited agreement that could bring the two countries closer amid the Islamic Republic's economic problems.

The state-owned India Ports Global Limited signed an agreement with the Iranian government to equip and operate the port, the official Islamic Republic News Agency reported.

India's ports and shipping minister, Sarbananda Sonowal, said in a post on X that the agreement will last for 10 years.

“The agreement not only strengthens links between two great nations but also places India's firm footstep in the global supply chain and maritime sector. This is a realization of Modi Ji's vision of enhancing global trade by providing an alternate trade route to India for Iran, Afghanistan, Eurasia and Central Asian Republics,” said Sonowal, referencing Indian Prime Minister Narendra Modi.

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