Iran finds new port partner in India
Though Iran has made use of the lifting of nuclear-related sanctions to boost ties with India, deepening trade with New Delhi is only part of its vision for such cooperation.
TEHRAN, Iran — Among the many delegations that have visited Iran since the Jan. 16 lifting of nuclear-related sanctions, India has been among the few that have managed to actually secure a major economic deal with the Islamic Republic.
Indian Prime Minister Narendra Modi signed 12 agreements, including a deal to develop Chabahar — a port city on the Gulf of Oman — shortly after he paid an official visit to Iran in late May. India committed to immediately invest about $500 million in the Iranian free trade zone, while it also vowed to spend an additional $20 billion to develop the port city with roads and railroads running inland to the north.
Expressing satisfaction with the agreement, Iranian President Hassan Rouhani called it a “political and regional” deal that could connect India through a “reliable route” to landlocked Afghanistan and Central Asia.
Iran sees Chabahar as an opportunity to diversify its trade partners, as it practices a macroeconomic policy strongly supported by Supreme Leader Ayatollah Ali Khamenei, who gives preference to Eastern partners who act rather “independently” when it comes to the United States' Iran policy.
