India and Iran are gearing up for foreign office consultations in Tehran this week, marking a significant step in strengthening bilateral relations. This follows a recent phone conversation between the National Security Advisors of both countries, where discussions centered on expanding cooperation across various sectors, including trade, defense, security, and connectivity, with a particular focus on the Chabahar Port.
The development of Chabahar Port remains a key priority for both India and Iran. India views the port as a crucial gateway to Afghanistan and Central Asia, especially given the challenges in accessing these regions through traditional routes. The port not only provides an alternative and reliable access route into Afghanistan, utilizing the Zaranj-Delaram road built with Indian assistance, but also offers a more direct sea-road access route into the Central Asian region. India has invested significantly in the Chabahar Port, and in 2016, Prime Minister Narendra Modi earmarked $500 million for its development. In early 2025, India signed a 10-year contract for the operation of the Chabahar port, demonstrating its long-term commitment to the project.
In addition to the bilateral talks, a trilateral meeting involving India, Iran, and Armenia is also anticipated soon. This trilateral cooperation is crucial for India's search for alternative trade routes. The three nations held their second trilateral consultations in New Delhi in December 2024, building upon the first meeting that took place in Yerevan, Armenia, in April 2023. These discussions have focused on connectivity initiatives, engagement in multilateral forums, and regional developments, with an emphasis on enhancing trade, tourism, cultural exchanges, and strengthening people-to-people ties.
The International North-South Transport Corridor (INSTC) is a vital component of this trilateral cooperation. This 7,200-kilometer multimodal network aims to connect India to Russia and Northern Europe via Iran and the Caspian Sea, potentially reducing freight transit time and costs significantly compared to the traditional Suez Canal route. During the December 2024 meeting in Delhi, Armenia presented its "Crossroads of Peace" initiative, which aims to transform the country into a pivotal transit hub. This initiative aligns with India's connectivity aspirations, offering a secure and efficient route for Indian goods to reach Europe.
The India-Iran-Armenia trilateral framework is poised to strengthen trade, transit, and diplomatic ties, fostering stability and growth across South Asia, West Asia, and the South Caucasus. This collaboration also allows Iran to explore ways to shift some trade traffic from Azerbaijan to Armenian and Georgian routes, further integrating the Persian Gulf-Black Sea Corridor. For India, the trilateral framework complements its larger goals under the INSTC and the Persian Gulf-Black Sea Corridor, enhancing its geopolitical and economic footprint in regions where China and Pakistan are increasing their influence.
