A new chapter in Iran-India trade relations; hurdles were cleared after Narendra Modi took office.
With the political inhibitions of the previous government out of the way, India has chosen to push through with its plans to invest in the Iranian port city of Chabahar, Press TV reports.
Afraid of clouding relations with the United States, the previous administration of Prime Minister Manmohan Singh would not get the investment off the ground. However, the present government headed by Premier Narendra Modi cleared the move just a few months after taking office.
Iran’s Chabahar Port, located 72 kilometers (44 miles) west of Pakistan’s Gwadar port, holds immense strategic and economic significance for India. It is already connected to the city of Zaranj in Afghanistan’s southwestern province of Nimruz and can serve as India’s entry point to Afghanistan, Central Asia and beyond.
Trade ties between Iran and India have been witnessing a boom. According to Indian sources, the export of engineering items and services to Iran has increased dramatically.
In July, shipments showed an increase of around 140 percent, which amounted to $177 million. Last year, the figure only stood at $52 million.