India has solidified its role as a key player in Eurasian trade by advancing its strategic partnership with Iran through the management of the Chabahar port in Iran’s Sistan and Baluchestan province. On September 9, 2025, during the first trilateral meeting of foreign ministers from India, Iran, and Uzbekistan in Tehran, Uzbekistan announced its decision to utilize Chabahar for trade with India, marking a significant step in enhancing connectivity between Central Asia and the Indian Ocean.

India’s 10-year agreement with Iran to operate the Chabahar port, signed in 2025, represents a landmark in its foreign policy and trade ambitions. This deal, which replaces an earlier agreement requiring annual renewals, grants India management rights over the Shahid Beheshti terminal and includes provisions for automatic renewal. Initially formalized in 2016 during Prime Minister Narendra Modi’s visit to Iran, the agreement underscores India’s commitment to transforming Chabahar into a vital transit hub within the International North-South Transport Corridor (INSTC), a collaborative initiative involving India, Russia, Iran, and Azerbaijan to streamline trade across Eurasia.

The Chabahar port offers India a strategic gateway to access landlocked Central Asian markets, bypassing traditional routes through Pakistan. This development aligns with India’s broader objective of strengthening economic ties with Central Asian nations, including Uzbekistan, Tajikistan, and others, while countering regional geopolitical challenges.

Uzbekistan’s decision to leverage Chabahar for trade with India reflects growing regional interest in the port’s potential. Iran has expressed readiness to extend Chabahar’s facilities to all member states of the Eurasian Economic Union (EAEU), further amplifying its role as a trade conduit. Concurrently, negotiations in Iran have explored Tajikistan’s access to Chabahar, signaling a broader trend of Central Asian nations seeking direct access to the Indian Ocean.

On April 23, 2025, a ministerial meeting in Termez, Uzbekistan, focused on the multimodal transport corridor connecting Belarus, Russia, Kazakhstan, Uzbekistan, Afghanistan, and Pakistan. Attended by transport officials and business representatives, the meeting emphasized enhancing freight transportation and elevating the role of CIS, Central, and South Asian countries in Eurasia’s global logistics network. Chabahar’s integration into such corridors positions India as a pivotal partner in these efforts.

The Chabahar port is a cornerstone of India’s vision to foster seamless trade and connectivity across Eurasia. By managing this strategic port, India not only strengthens its economic ties with Iran and Central Asia but also enhances its geopolitical influence in the region. The INSTC, with Chabahar as a key node, is expected to reduce transit times and costs for goods moving between India, Central Asia, and Europe, offering a competitive alternative to existing maritime routes.

This agreement marks a unique milestone for India, as it is the first instance of the country managing a foreign port. By deepening its collaboration with Iran and expanding access for Central Asian nations, India is poised to play a transformative role in reshaping Eurasian trade dynamics, fostering economic growth, and reinforcing its strategic presence in the region.