Chabahar Port and the Geo-Economics of Regional Integration

Abstract

The present study aims to analyse the geo-economic role of Chabahar Port in regional and international trade dynamics and to examine its competitive dimensions vis-a-vis Pakistan’s Gwadar Port. Employing a descriptive-analytical approach grounded in the theoretical frameworks of geo-economics and the balance of economic power, the study seeks to elucidate Chabahar’s role in redistributing transit and economic power in South Asia. Findings indicate that Chabahar, as the focal point of trilateral co-operation among Iran, India, and Afghanistan, has evolved from a mere infrastructure project into a regional geo-economic mechanism. Analysis of statistical and documentary data shows that Chabahar’s share in Iran’s regional transit increased from 2% to 9% during 2016–2025, and the port has reduced transit time between India and Afghanistan by 40%. A comparative assessment of Chabahar and Gwadar reveals that, owing to its multilateral governance structure, Chabahar enjoys greater economic sustainability and decision-making autonomy, whereas Gwadar remains heavily dependent on Chinese investment and strategic interests. Interpretation of these findings further indicates that, beyond its economic function, Chabahar also fulfils political and security roles. By fostering a pattern of mutual dependence, its operations among the three countries have contributed to reducing geopolitical tensions and strengthening regional integration. Strategically, Chabahar serves not only as an alternative trade route for Afghanistan but also as a platform for Iran’s economic diplomacy and for expanding India’s influence in Central Asia. This research emphasizes that Chabahar represents a successful transition from traditional geopolitics to interactive geo-economics and can serve as a model for sustainable economic co-operation in South Asia and the Indian Ocean region.

JEL: F13, F15, R42, O53