The agreement, signed on Monday, pertains to the development of the strategically significant Chabahar port, situated near Iran's border with Pakistan. India's Foreign Minister, S Jaishankar, stressed the mutual advantages of the deal, stating that it shouldn't be narrowly construed.
"We believe this agreement will not only enhance the operations of Chabahar port but also benefit the entire region," Mr. Jaishankar stated in response to queries about Washington's stance on the deal.
India's involvement with Chabahar port dates back to 2016, and the country took over operations at the end of 2018. The port has since provided a crucial transit route for Indian goods to Afghanistan and Central Asia, bypassing the land route through Pakistan, with whom India shares strained relations.
Notably, over 2.5 million tonnes of wheat and 2,000 tonnes of pulses have been shipped from India to Afghanistan through Chabahar port, officials report.
Under the new agreement, India plans to invest approximately $370 million to further develop the port infrastructure, marking what the country's shipping minister calls a "historic moment" in India-Iran relations.
However, the United States has reiterated its stance on imposing sanctions on Iran. State Department Deputy Spokesperson Vedant Patel cautioned entities considering business deals with Iran about the associated risks.
"Any entity considering business with Iran must be aware of the potential sanctions they could face," Mr. Patel emphasized.
Despite US warnings, India remains steadfast in its commitment to the Chabahar port project, underscoring its importance for regional connectivity and trade.