Barriers to overland trade and movement have been particularly troublesome in connecting with Afghanistan and Central Asia, and beyond that to the Eurasian landmass.
India has supported multi-modal transport corridors to its east and west to try to bypass these barriers. Investments in Sittwe Port in Myanmar and Chabhar in Iran are two examples of this strategy. Sittwe is a part of the Kaladan multi-modal project while Chabahar was linked to the Zaranj Delaram highway that was built in Afghanistan.
India is also working on an India-Middle East– Europe (IMEC) corridor with the US, the UAE, Saudi Arabia and a number of European countries.
While the situation in Afghanistan and Central Asia has changed with the US withdrawal, the realities of India’s geography remain. It is in this context that the agreement between Indian Ports Global Ltd. (IPGL) and the Port & Maritime Organisation (PMO) of Iran needs to be seen.
However, within hours of the Chabahar pact being signed, the US cautioned against engaging in business with Iran, citing the potential risk of sanctions. This statement triggered speculation about straining of US-India relations. These statements should be placed in the proper perspective. Over the past decade, the India-US relationship has significantly matured. This transformation has been marked by increased strategic cooperation, particularly in defence. $4-b pact to buy MQ-9B armed drones reached in February is just the latest in the series that has seen defence trade jump the $20-b mark since the year 2000 when defence trade between the two was negligible.Some major developments in this relationship include the India-US Initiative on Critical and Emerging Technology (ICET), India joining the Artemis Accords in Outer Space, cooperation in semiconductors, in combat aircraft engines, and cooperation in ensuring the security of sea lines of communication in the Indian Ocean.
Furthermore, both nations have shown a unified front on global issues such as climate change and counterterrorism. High-level diplomatic engagements have further solidified this partnership, making it one of the most consequential relationships in the 21st century.
A measure of how far India-US ties have come is the unveiling of an ambitious roadmap to position India and the US as “trusted technology partners”. The understanding institutionalises a framework to overcome regulatory barriers and export controls, particularly on the US side. The clinching of this understanding is seen as a significant milestone in India-US relations that have been on an upward trajectory for nearly 25 years.
It is only natural that two countries will have disagreements on certain issues. But the days of India and the US talking past each other are behind us. Given the present state of relations, when irritants arise, the two sides sit down to discuss and solve them.
For instance, when India decided to import oil from Moscow, despite reservations from Washington, India was able to explain the necessity of this decision to maintain stability in global oil markets. This pragmatic approach helped the US understand India’s position.
Similarly, the Chabahar deal is not just about India’s interests but also about regional stability and connectivity which is valued by the US.
By investing in the development of the Chabahar Port, India aims to improve connectivity with Central Asia and Afghanistan. This, in turn, will benefit the International North-South Transport Corridor (INSTC), which has faced setbacks due to conflict in Ukraine.
India’s actions mirror those of the US in 2015, when the P5+1 signed the Joint Comprehensive Plan of Action (JCPOA) with Iran. While the approaches may differ, both the Chabahar Port deal and the JCPOA share the twin goals of dissuading Tehran to continue with its nuclear programme and enabling Iran to ntegrate into the global economic system.
AGiven this, a more nuanced understanding of the situation is required. India and the US have distinctly unique histories and, consequently, different approaches to engaging with other nations.
Washington for decades has dealt with treaty-based alliance partners. In contrast, New Delhi has traditionally guarded its independence through its non-aligned approach.
This difference in approach underscores the need for a more sophisticated understanding of the dynamics at play.
India and the US have agreed that their cooperation will serve “the global good”. It is, therefore, important that the US understands that India’s pact with Iran is a connectivity effort to bring prosperity. And that it is beneficial to the broader international community, in line with Washington’s vision of a rules-based world order. The US has shown flexibility and maturity in its dealings with India previously – something that New Delhi expects will carry the relationship forward.
