Context:
- The United States revoked the sanctions waiver granted for Iran’s Chabahar Port, effective September 29.
- India’s Ministry of External Affairs (MEA) stated that it is examining the implications of the decision.
- Chabahar is a strategic connectivity project for India, providing access to Afghanistan and Central Asia while bypassing Pakistan.
Key Highlights:
Government Initiative / Policy Details:
- The revocation aligns with the US “Maximum Pressure Policy” aimed at isolating Iran economically and diplomatically.
- The earlier waiver had allowed India to participate in Chabahar’s development despite US sanctions on Iran.
Strategic & Economic Significance of Chabahar:
- Located in Iran’s Sistan–Baluchistan province, Chabahar is Iran’s closest port to India.
- India has invested $25 million in port equipment for the Shahid Beheshti Terminal, including Mobile Harbour Cranes.
- Enables India’s direct trade and transit route to Afghanistan and Central Asia, bypassing Pakistan’s land blockade.
Agreement & Infrastructure Development:
- In May 2016, India–Iran–Afghanistan signed the Chabahar Agreement to establish an International Transport and Transit Corridor.
- India is developing the first phase of the Shahid Beheshti Terminal.
Concerns & Implications:
- Revocation may disrupt India’s regional connectivity strategy.
- Raises uncertainty over India–Iran cooperation and logistics to Afghanistan.
- Could increase operational and financial risks for Indian investments.
Relevant Prelims Points:
- Issue: Revocation of Chabahar sanctions waiver.
- Causes: US maximum pressure approach against Iran.
- Government Initiatives: India’s investment in Chabahar; trilateral Chabahar Agreement (2016).
- Benefits: Strategic access to Central Asia; trade diversification.
- Challenges: Sanctions compliance; geopolitical uncertainty.
- Impact: Constraints on India’s connectivity and regional influence.
Relevant Mains Points:
- Key Concepts:
- Sanctions Waiver – temporary exemption from economic penalties.
- International Transport and Transit Corridor – facilitates cross-border trade and connectivity.
- Maximum Pressure Policy – coercive diplomacy through sanctions.
- Strategic Analysis:
- Chabahar supports India’s strategic autonomy and counters China–Pakistan nexus (Gwadar).
- Way Forward:
- Diplomatic engagement with the US for project-specific exemptions.
- Diversification of connectivity corridors (INSTC).
- Balanced West Asia diplomacy safeguarding India’s interests.
UPSC Relevance (GS-wise):
- GS Paper II: International Relations, India–Iran–US relations, regional connectivity.
GS Paper III: Economy, trade routes, strategic infrastructure.