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15/07/2020 - International Relations

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July 15, 2020

India’s loss in failing to develop the Chabahar port project in Iran might be China’s gain. Comment (200 Words)

Refer - The Hindu

Enrich the answer from other sources, if the question demands.

 

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IAS Parliament 4 years

KEY POINTS

·         Right from the beginning of its tenure, the government has underlined the geostrategic importance it attaches to the Chabahar port project. The project, signed in 2003, has been a symbol of traditionally important India-Iran ties.

·         While contract changes by the Iranian side and delayed responses from the Indian side were part of the problem, the main hurdle has been the fear of American penalties.

·         Regardless of the reasons for India’s inability to join the railway project, the decision can only be seen as an opportunity lost. The impression that India wavered due to U.S. pressure, especially after India cancelled oil imports from Iran, also questions New Delhi’s commitment to strategic autonomy.

·         While Iran claims it will fund the railway using its own resources, it seems to have embarked on the Chabahar-Zahedan project with a confidence borne from an imminent deal with China for a 25-year, $400 billion strategic partnership on infrastructure, connectivity and energy projects.

China’ gain and India’ Weakness

·         China,s investment is a set back to India, and loses its hold in access to middle east, causing a flaw in Look West policy.

·         By passing Pakistan and trade with Afghanistan will be curtailed, balace of power in South Asia getting undermined by China.

·         Energy dependence on Iran is also an another set back and affects the over all growth of Indian economy. Current dynamism in fuel prices makes the growth uncertain.

·         China now gets hold over Iran and geostrategic weakness stands exposed,India-China won’t be on equal footing.

·         India’s neighborhood policy will be influenced by China, consequently the diplomatic engagement will lose its importance, aggression by Chinese will increase over period of time especially along the borders.

 

IAS Parliament 4 years

Good attempt. Keep Writing.

Aradhana Tiwari 4 years

Recently, Iran has decided to proceed with the Chabahar rail line construction on its own, citing delays from the Indian side in beginning and funding the project.

Chabahar- Zahedan rail link project is "a 628 km rail line from Chabahar port to Zahedan, 

extended to Zaranj across the Afghanistan border,and to Turkmenistan. The entire project would be estimated to use approximately "USD 400 million" from the Iranian National Development Fund.

>>> India's loss in the aforementioned scenario :

- Loss of ties : Chabahar port project has been a symbol of traditionally important India-Iran ties. 

- Geostrategic loss : Connected by sea lanes to ports on India’s west coast, Chabahar would form the fulcrum of India’s outreach to Russia and Central Asia, enhancing connectivity, energy supplies and trade. 

- Loss of golden opportunities for trade : Given Pakistan had blocked Indian aid to Afghanistan and all trade over land, Chabahar provided India an alternative for trade to permanently bypass its troublesome neighbour.

>>> In a world where connectivity is seen as the new currency, India’s loss could well become China’s gain, because ;

- After dropping India, Iran and China are now looking at finalising a 25-year "$400 billion Strategic Partnership" with Chinese involvement in Chabahar's duty free zone, an oil refinery nearby and possibly a larger role in Chabahar port as well.

- This cooperation will extend from investments in infrastructure, manufacturing and upgrading energy and transport facilities, to refurbishing ports, refineries and other installations.

- This will also commit Iranian oil and gas supplies to China during that period. This would be seen as a vital gain for China citing low oil prices and uncertainty over economic impact of Covid-19. 

- Bandar-e-Jask port lies to the west of Chabahar and right before the Strait of Hormuz would allow China to extend its control along the Pakistan-Iran coast.

- Further, an extensive trade and military partnership with Iran would be of vital interest for China more importantly, as per China’s access to the Indian Ocean region, connecting via Gwadar and Djibouti.

>>> Reasons behind India's failure to develop the Chabahar port project in Iran :

- "Contract changes by the Iranian side" could be the one reason behind delayed responses from the Indian side.

- The main reason why, India never began the work, is the fear that it could attract sanctions by the USA and because of which 

India has already zeroed out its oil imports from Iran.

- Further, despite a sanction waiver, it was difficult for India to find equipment suppliers and partners for the Chabahar port and the rail line in Iran, due to worries of being targeted by the USA.

>>> Conclusion : 

As an emerging power, India cannot remain confined to South Asia and a peaceful extended neighbourhood (Iran-Afghanistan) is not only good for trade and energy security but also plays a vital role in India's aspirations of becoming a superpower.

 

    


IAS Parliament 4 years

Good attempt. Try to stick to word limit. Keep Writing.

Ananta Kumar Muduli 4 years

Sir pls review

IAS Parliament 4 years

Try to include about China's gain and India's weakness. Keep Writing.

Sheetal 4 years

Review plz thank you for your time. 

IAS Parliament 4 years

Significance of the port, reasons for delay are not needed. Try to include about China's gain ad India's weakness. Keep Writing.

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