As tensions rise between Israel and Iran, India is keeping a close watch on the potential impact on two key connectivity initiatives, the Chabahar Port and the International North-South Transport Corridor (INSTC). Both projects are central to India’s strategic outreach to Afghanistan, Central Asia, and Russia.
While Israeli strikes have not targeted Iranian ports directly, there are reports of hits along the Iranian coastline, prompting heightened vigilance. India has made significant investments in Chabahar, which it sees as a vital trade and connectivity hub. In 2023, New Delhi signed a 10-year agreement with Iran, enabling India Ports Global Ltd. (IPGL)—a joint venture of the Jawaharlal Nehru Port Trust and the Kandla Port Trust—to manage operations at the port alongside Iran’s Aria Banader.
India’s commitment includes an $85 million investment to upgrade berths and a $150 million line of credit extended through Exim Bank. The Taliban-led administration in Afghanistan has also expressed growing interest in leveraging Chabahar Port and joining the INSTC to diversify away from reliance on Pakistani ports. Several Central Asian nations are reportedly exploring similar possibilities, recognizing the strategic value of the corridor.