Sushma Swaraj's visit is significant because it comes after sanctions on Iran were lifted by the US.
Highlights
- India is extending a $150 million line of credit to Iran for the project
- It will allow India to bypass Pakistan to transport goods to central Asia
- Sushma Swaraj, on her first Iran visit, also met President Hassan Rouhani
India and Iran have agreed to move forward quickly on the crucial Chabahar port project during foreign minister Sushma Swaraj's trip to Iran today. Ms Swaraj also met Iranian President Hassan Rouhani in what is her first visit to the country as foreign minister.
India believes the port is critical to its interests and wants to develop it as a counter to Pakistan's Gwadar port which was built with Chinese assistance. The modalities of the project, for which India is extending a 150 million dollar line of credit, have been stuck for several years. The Chabahar port in South East Iran will allow India to bypass Pakistan to transport goods to Afghanistan and Central Asia using a sea-land route.
In February, the Cabinet had cleared the credit and formation of a company in Iran to handle the project. Ms Swaraj's visit is also expected to boost trade ties between the two countries.
In a statement released after Ms Swaraj called on President's Rouhani, the Ministry of External Affairs said, "President Rouhani spoke of Chabahar as a defining partnership which has the potential of connecting the entire region. He hoped for closer consultations with India on regional issues esp Afghanistan and the challenge of terrorism."
Ms Swaraj's visit is significant because it comes after sanctions on Iran were lifted by the US. Prime Minister Narendra Modi is expected to visit Iran later this year.