Chabahar Port 

In 2016 India signed a deal with Iran which mentioned that India would pump-in $8 billion for the development of Chabahar port. It has got 10 berths and can handle about 8 lakh tonnes of cargo.

       

Why is this Port important for India?

1) India uses the port to reach the Afghan markets. Afghanistan was dependent on Pakistan for essential supplies but now Indian products can easily reach Afghanistan through Iran. India has also laid down rail tracks and made an important highway connecting all important Afghan cities. European counties can also be reached through roadways which would be quicker.

2) The deal also gave India the permission to keep its naval fleet posted in Chabahar. As the post is just  80 km away from Pakistan's Karachi port, India can easily keep a watch on the Pakistani and Chinese vessels posted there and can easily destroy them or threaten then if needed. It also breaks the Chinese "STRING OF PEARLS" which China created to surround India from all sides.

3) The U.S.A. has put sanctions on Iran, hence, Iran can't deal in American Dollars. India taking advantage of Iran's situation has invited it to use the Indian Rupee as a medium for having monetary deals. It would raise the price of the Indian Rupee and would increase the Indian economy.

Controversies

This deal has however, brought up a lot of controversies.

Iran has been at war with The United States for a couple of years now. 

India and US consider each other as good friends, but this deal has disappointed the US as India has become a friend of Iran.

However, thanks to India's excellent diplomatic relations, The United States continues to be not only a Good friend but, also an ally of India. and has formed the Quad to counter China.

      - Prajata Basu

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