Monday, May 23, 2016

India and Iran sign “historic” Chabahar port deal

India and Iran sign “historic” Chabahar port deal

The bilateral agreement of the Chabahar port deal between India and Iran would likely boost economic growth in the Iranian region and challenge China’s power through central and South Asia. Prime Minister Narendra Modi has announced that India will invest $500 million into an Iranian port on the border close to Pakistan. The port is important for direct transportation between Afghanistan and Central Asia for trades of Indian goods and products, and possibly gas.

In addition to this port, the two nations also signed agreements with aerospace, biotechnology, nanotechnology and counter-terrorism. I thought it was interesting that these two nations are now working together, even though some people in Iran are cautious of India because of recent setbacks in obligations made between the two nations in past years. It goes to show that the imminent increasing power of China is resulting in nearby states (who typically do not have the best relationship) are now uniting in various aspects in an attempt to push China’s power back.

Jessy Krempp


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