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.
Irans Chabahar Port, located 72 kilometers (44 miles) west of Pakistans Gwadar port, holds immense strategic and economic significance for India. It is already connected to the city of Zaranj in Afghanistans southwestern province of Nimruz and can serve as Indias 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 goods and products 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.
By Press TV
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