THE GIST of Editorial for UPSC Exams : 26 December 2018 (Chabahar tidings: on Indian taking over port operations in Iran)

Chabahar tidings: on Indian taking over port operations in Iran 

Mains Paper 2: International Relations  
Prelims level: Chabahar port 
Mains level:  Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests

Context 

• The opening of the first office of Indian Ports Global Limited at Iran’s Chabahar.
• The takeover of operations of the Shahid Beheshti port is a milestone in India’s regional connectivity and trade game plan.

Key significance of the Chabahar port

• Chabahar port opens up a permanent alternative route for trade with Afghanistan and Central Asia, given the hurdles in the direct route through Pakistan.
• It facilitates India’s role in Afghanistan’s development through infrastructure and education projects. 
• It gives India’s bilateral ties with Iran, a major oil supplier and potential trade market for India, a big fillip. 
• India has helped develop the Shahid Beheshti port with these outcomes in mind, and has been given the contract to manage it for 18 months. 
• It will be important to operationalise the port quickly and smoothen the route to Afghanistan. 

Geo-political challenges 

• The decision by India, Afghanistan and Iran to hold an international event in February 2019 to promote Chabahar and to study ways to make the route more attractive and decrease logistic costs is timely. 
• About 500 companies have registered with the Free Trade Zone authority there. 
• To keeping timelines and delivery of New Delhi’s commitments will be key to the port becoming a regional hub for transit trade, steel and petrochemicals
• It will be necessary to encourage Afghan companies to use the route more, in line with President Ashraf Ghani’s desire to have a commercial fleet under the Afghan flag setting sail from Chabahar.
• Visions of Chabahar’s immense potential as a game-changer for prosperity and stability in the region must, however, necessarily be tempered by the reality of geopolitical challenges. 
• The Chabahar port has received a waiver from the U.S. sanctions on Iran for the moment, but these concessions could be withdrawn any time, given the constant upheaval in the administration. 
• The possibility of the withdrawal of U.S. troops from Afghanistan, after the pullout from Syria, will add to security concerns for Afghanistan and impact on the Chabahar route as well. Meanwhile, 

Way forward 

• The reconciliation process with the Afghan Taliban is likely to see the regional powers, the U.S. and Russia engaging Pakistan more.
• This could give Islamabad space to play spoiler in Chabahar, which is seen as a rival warm water port to Pakistan’s Gwadar. 
• The Afghanistan government is hedging its bets on trade via Chabahar too is clear.
• In recent months, special cargo corridors have been opened with China, Kazakhstan, Turkey, Europe, Russia, the UAE, and Saudi Arabia, with more trade diverted through them than with traditional partners Pakistan and India. 
• With Chabahar, India has done well to keep a place in the intricate connectivity network of the region. 
• Given all the competing interests that criss-cross over Chabahar, it will require sustained and nuanced diplomacy to stay ahead in this game.

Online Coaching for UPSC PRE Exam

General Studies Pre. Cum Mains Study Materials

UPSC Prelims Questions: 

Q.1) Arrange the following Ports from west to east:
1. Gwadar Port
2. Chabahar Port
3. Hambantota Port
4. Sittwe Port 
Select the correct answer using the code given below.
(a) 2-1 -4-3
(b) 1-3-2-4
(c) 2-1 -3-4
(d) 2-3-1 -4
Answer: C

UPSC Mains Questions: 
Q.1) Why Chabahar port is so significant for India to make geo-political relations with west Asia?