The ongoing conflict between Israel and Iran is now becoming fatal. Both countries are firing missiles on each other. Meanwhile, according to the Israeli media report, Iran has attacked the Israel Stock Exchange and Hospitals. Tehran has launched new attacks on Israel, in which more than 25 missiles have been fired. At the same time, the hope of retaliation of Israel has increased again.
Due to the ongoing struggle between these two countries, India’s $ 550 million (about Rs 4771 crore) of India is at stake in Iran. In fact, Iran’s business and strategic interests in Iran are mainly focused on Chabahar Port, which is an important asset through India Port Global Limited (IPGL). This port gives India a strategic way to Afghanistan and Central Asia, which bypasses Pakistan.
Now due to the increasing struggle of Iran-Israel, there may be a crisis on this port, as America’s participation is increasing and the Western sanctions remain constant obstacles, which are complicating both port development and rail connectivity initiatives.
10 years agreement
As of May 2024, India has achieved a 10 -year contract for the management of Shahid Behch Terminal in Chabahar. The IPGL takes care of its operations in partnership with Iran’s Aria Banader. However, earlier in the year 2017, private companies like Adani Group and Essar showed interest in its operations. India has a big investment in the development of this port.
India’s investment at Iran’s port
This port offers India an alternative and small route to trade with Iran, Afghanistan, Central Asia and Europe. India has invested more than US $ 200 million in the development of Chabahar port and announced to invest Rs 700 crore to develop a port terminal.
In addition, India has a $ 85 million investment for birth upgrade, $ 150 million Exam Bank Line of Credit and Chabahar-Jahdan Railway to facilitate Steel imports for the Railway to facilitate a separate line of credit of $ 400 million. Let us tell you that Shahid Behechti Terminal is the second largest port in Iran.
Work on railway connectivity
The Indian PSU company IRCON International was assigned to IRCON International under the $ 1.6 billion MoU under the Chabahar-Jahedan railway project, but Iran partially separated from it in 2020 due to delay in funding. There is a plan to connect Chabahar port to Iran’s railway network by 2026.
Trying to add a new network of business
At the diplomatic level, India and Iran have maintained regular contacts to maintain speed. In January 2025, in the 19th Foreign Office counseling, National Security Advisers and Authorities insisted on increasing cooperation on Chabahar and International North-South Transport Corridor (Instc). Its objective is to create a multi-model transport network for freight transportation between India, Russia, Iran, Central Asia and Europe.
China-US challenge
China is also interested in the development of Chabahar port and is planning to connect it to Gwadar port under its Belt and Road Initiative (BRI). At the same time, the US has expressed concern over India’s involvement in the development of Chabahar Port and warned that whoever does business with Iran may have to face restrictions.
It is being said that the ongoing Israeli-Iran struggle and the possibility of extended American participation may disrupt operations in Chabahar, affecting insurance, logistics and Instc corridors. At the same time, Western sanctions remain constant obstacles, which are complicating both port development and rail connectivity initiatives.