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Israel-Iran war: As tensions escalates between Iran and Israel, India on HIGH risk of losing nearly Rs 47710000000 in Iran due to…, faces challenges from China and US over…
The fight between Israel and Iran is getting more dangerous. Both countries are attacking each other with missiles. According to reports from Israeli media, Iran has now targeted Israel's stock exchange and some hospitals. More than 25 missiles have been launched by Iran, and now it is expected that Israel will strike back soon.
Because of this growing conflict, India could be at risk of losing around 550 million dollars (about Rs. 4,771 crore) that it has invested in Iran. Most of this investment is focused on the Chabahar Port, which is very important for India. This port is managed by India through a company called India Ports Global Limited (IPGL) which helps India reach Afghanistan and Central Asia without going through Pakistan.
But now, with the tension rising between Iran and Israel, there are worries that the port project might get affected. The situation is getting more complicated due to increasing involvement from the US and ongoing western sanctions, which are making it harder to continue work on the port and its connected railway project. 10-year agreement
As of May 2024, India has signed a 10-year contract to manage the Shahid Beheshti Terminal at Chabahar Port in Iran. This terminal is run by India Ports Global Limited (IPGL) in partnership with Iran's Arya Banader company. Earlier, in 2017, private Indian companies like the Adani Group and Essar had also shown interest in operating this port. India's investment in Chabahar Port
The Chabahar Port gives India a shorter and alternative trade route to Iran, Afghanistan, Central Asia, and even Europe. India has already invested over USD 200 million in the development of the port. In addition, the country has announced Rs. 700 crore for developing one of the port's terminals.
Other investments include: USD 85 million for upgrading the port's berths,
A USD 150 million line of credit from EXIM Bank, and
Another USD 400 million line of credit to support steel imports for the Chabahar-Zahedan railway line.
Shahid Beheshti Terminal is the second-largest port in Iran, and it holds significant importance for India's regional trade strategy. Railway connectivity work
India and Iran had signed a deal worth USD 1.6 billion to build the Chabahar-Zahedan railway line. The project was given to Indian government company IRCON International. But in 2020, Iran partly stepped back from the plan because of delays in funding. Still, there is a goal to connect Chabahar Port to Iran's railway network by 2026. Trying to build a new trade network
India and Iran have been in regular touch to keep things moving forward. In January 2025, during the 19th round of talks between the two countries, top officials and national security advisors discussed how to improve cooperation on the Chabahar Port and the International North-South Transport Corridor (INSTC).
This corridor is a major trade route project that aims to create a network linking India, Iran, Russia, Central Asia, and Europe using roads, railways, and sea routes. Challenges faced from the US and China
China is also interested in developing the Chabahar Port and it wants to connect it to Pakistan's Gwadar Port as part of its Belt and Road Initiative (BRI). On the other hand, the United States has raised concerns about India's involvement in Chabahar. The U.S. has reminded countries that strict sanctions are still in place on Iran and warned that anyone doing business with Iran might face penalties.
Now, with the ongoing conflict between Israel and Iran and the possibility of the U.S. getting more involved, there is fear that operations at Chabahar could be affected. This may create problems for shipping, insurance, and the trade route planned under the International North-South Transport Corridor (INSTC).
Also, the western sanctions have already been causing delays and difficulties for both the port development and the railway project connected to it.
