India leverages Chabahar port to expand trade with Afghanistan amid Pakistan border closures

DW
DW
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Pakistan-Afghanistan border closures have reduced trade; Afghanistan shifts commerce to India via Iran's Chabahar port, which India invests in to bypass Pakistan.
India leverages Chabahar port to expand trade with Afghanistan amid Pakistan border closures
A What happened
Recent cross-border violence has led Pakistan to close trade routes with Afghanistan, severely impairing their historical commerce. Afghanistan, dependent on imports and exports, is seeking alternatives and has engaged India to increase trade via the Chabahar port in Iran, which avoids Pakistani territory. India is investing in port expansions and facilitating diplomatic talks to promote trade growth, aiming for a $1 billion target. Despite logistical and US sanctions challenges, this shift signals a regional realignment in trade networks influenced by geopolitical conflict and evolving alliances.
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Key insights

  • 1

    Strategic realignment of trade routes: The closure of Pakistan-Afghanistan borders is catalyzing a realignment of trade corridors, empowering India and Iran to bypass Pakistan and reshape regional economic linkages.

  • 2

    Geopolitical opportunity for India: India's investment in Chabahar port and diplomatic engagement with Afghanistan represent a calculated move to increase influence in Afghanistan and diminish Pakistan's dominance in regional trade.

  • 3

    Sanctions and infrastructure as limiting factors: US sanctions on Iran and infrastructure deficits at Chabahar port create significant barriers to fully operationalizing this trade route, influencing the pace and sustainability of the shift.

Takeaways

India's push to develop the Chabahar port as Afghanistan's main trade gateway marks a significant strategic shift driven by deteriorating Pakistan-Afghanistan relations. However, infrastructural and sanction-related constraints will test the durability of this new trade alignment.

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