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United States has exempted India from imposition of certain sanctions for development of strategically-located Chabahar port in Iran, along with construction of railway line connecting it with landlocked Afghanistan. The decision comes after US imposed toughest ever sanctions on Iran under Iran Freedom and Counter-Proliferation Act, 2012.

Where is Chabahar port located?

·      Iran

Why it is important for India?

·      The Chabahar deal is an extremely important strategic decision which would help India to get a transit route to Afghanistan and further to Central Asian region and beyond.

·      This 500 million $ investment would give India a much wanted access to the region’s resources bypassing the land route via hostile Pakistan.

·      Secondly, this port is located very close (around 100kms) to Pakistan’s Gwadar Port, which has been developed by China.

·      Therefore, a geo-strategic game is at play between the two regional powerhouses (India and China) in the region. 

·      Once the Chabahar port is developed, goods from India will not only travel up to Afghanistan, but beyond, along the yet-to-be developed International North-South Transport Corridor (INSTC) to Central Asia.