Following Iranian President Hassan Rouhani’s visit, India is all set to increase its footprints in the strategically-important port city in Iran. India will soon take over the operational control of Shahid Behishti port in Chabahar, even as Indian companies will get an opportunity to invest in its Free Trade Zone. During the bilateral meeting between Indian Prime Minister Narendra Modi and Iranian President Hassan Rouhani on Saturday, it was also decided that India will help Iran develop the Chabahar-Zahedan rail line and will ease banking channels and legal framework for promoting trade and investment in Iran to circumvent the international sanctions on it.
The agreement for the lease Contract for Shahid Beheshti Port — Phase 1 of Chabahar, allowing India port operations, was signed in the presence of Modi and Rouhani. Thanking Rouhani for trusting India with developing the Chabahar Port as the ‘Golden Gateway’ for land-locked Afghanistan and Central Asia, Modi said it will boost connectivity in the region.
He announced India’s support in the development of the Chabahar-Zahedan rail link to make the gateway more effective for trade promotion and reaching its potential. Modi added Rouhani’s visit is indicative of the fact that the two sides want to deepen cooperation in key areas, including connectivity.
located barely 75 kilometre away, Chabahar is seen as a rival to the Gwadar Port in Pakistan, which is being developed by China. Security and terrorism dominated a substantial part of the talks between the two leaders. Modi said that the two countries are committed to prevent spread of hatred, violence, terrorism and trafficking.
Together Modi and Rouhani called for condemning countries aiding and abetting terrorism and urged the international community to end selective or partial approaches to combating terrorism. Iran, like India and Afghanistan has been facing security threat from Pakistan-based terror groups. In his media statement, Rouhani said Iran remains committed to fight terrorism with India. "We are determined to combat terrorism and extremism," Rouhani said.
Rouhani also committed Iran’s support for India to play a greater role in the United Nations and announced support for Comprehensive Convention on International Terrorism. Interestingly, speaking later at an Observer Research Foundation event, Rouhani was more vocal in his backing for India at the UN Security Council. "Why India with a population of over 1 billion does not enjoy veto rights and why does the United States have veto rightsIJ Five countries which have atomic bombs were given the right of veto," Rouhani said.
In their joint statement they underscored the need for reform of multilateral bodies like the United Nations and financial institutions to allow larger participation of developing countries in international decision-making.
A total of nine agreements were signed between the two countries following the talks which included a double taxation avoidance treaty to promote trade and investment. A Memorandum of Understanding was (MoU) was inked on the establishment of an Expert Group on Trade Remedy Measures to promote cooperation in areas of mutual interest. Agreements in the field of health, pharmaceuticals, traditional system of medicine, postal cooperation, agriculture and exemption of visa for diplomatic passport holders were also signed. The two sides also exchange instrument of ratification of the Extradition Treaty between them. There were also discussions on liberalisation of visas and allowing e-visas to promote people to people contact.
In addition, four MoUs between the trade bodies of the two countries were signed on the sidelines of the visit. later, briefing about the talks, Ministry of External Affairs Joint Secretary Deepak Mittal, said two more pacts -Preferential Trade Treaty, and the Bilateral Trade Treaty will be signed soon to further boost trade ties.
However, the much-awaited deal on the Farzad B gas field remained elusive as the ongoing talks between the oil ministries of the two countries remained inconclusive. Indian company OVl has reworked its offer and cut down the price in view of the huge amount demanded by Iran. OVl now is interested only in exploration of the gas while leaving the marketing to Iran.
Modi took up the issue of fishermen and seafarers who are often arrested for straying into the Iranian waters while terming it as a humanitarian issue which needed to dealt with sympathetically. Sources said Rouhani agreed to Modi’s suggestions on this.
"There was no single issue, whether regional or international, where our views were not same. We want to see Afghanistan a peaceful and one country. On Syria and Yemen too our views were same. There was a consensus that such issues can be resolved only through political and diplomatic initiatives," Rouhani said. He went on to add that India-Iran relationship is far beyond diplomatic connection and is bound by cultural and history.
This was not only Rouhani’s first visit to India but also a first visit by an Iranian President in the last ten years.