Iranian President Hassan Rouhani inaugurated on Sunday a newly-built extension to the country's main Arabian Sea outlet, the strategic Chabahar Port on the Gulf of Oman, which more than triples its capacity and poses a challenge for a port under construction in neighboring Pakistan. The $340-million project opens up a new strategic transit route to Afghanistan and Central Asia for India through Iran, bypassing Pakistan. Last year, India committed up to $500 million for the development of the Chabahar port along with associated roads and rail lines. For India, the investment in Chabahar was important since the port will bolster a trade route for land-locked Central Asian countries that would bypass rival Pakistan. Over a month ago, India sent the first consignment of wheat to Afghanistan through Chabahar Port, which Swaraj remarked as a gift from Indians to Afghans.

Source: Economic Times December 03, 2017 00:45 UTC