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The Economy of Iran

Iran and India: Chabahar and Trade

India has developed Iran's Chabahar port as a trade gateway to Afghanistan and Central Asia, and long imported Iranian oil until US sanctions curbed it.

A link with India.

Chabahar

India invested in the port on Iran’s southeastern coast to bypass Pakistan.

INSTC

The International North–South Transport Corridor aims to link India, Iran and Russia.

Oil

India was a major buyer of Iranian crude before sanctions limited purchases.

Constraints

US sanctions complicate financing and shipping.

A transit route

Indian goods reach Central Asia through Iranian territory.

Ignoring geopolitics in trade projects

Sanctions and politics shape outcomes.

Key takeaways
  • India built Chabahar.
  • INSTC links India and Russia via Iran.
  • India once imported Iranian oil.
  • Sanctions complicate projects.
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