India with Chabahar-Zahedan Railway to Sharpen ‘Look North’
Chabahar-Zahedan Railway (Image credit X.com)
Chabahar-Zahedan Railway Nears Completion, Poised to Transform Trade Routes for India and Beyond
By TRH News Desk
NEW DELHI, May 20, 2025 – The Chabahar-Zahedan railway, a multi-billion-dollar infrastructure project in Iran, is approaching completion. The rail link promised to revolutionize connectivity between Central Asia, Afghanistan, Russia, and the Indian Ocean.
Iran Observer in a video post on X shared the progress of the key infrastructure project. It underscored Iran’s engineering feats and strategic ambitions, with significant implications for India’s trade and geopolitical influence.
The railway, part of a broader initiative to link the port of Chabahar to Iran’s rail network via Zahedan, is expected to be operational by late 2025.
“The Chabahar-Zahedan railway will link Central Asia, Afghanistan and Russia directly to the Indian Ocean, completely changing traditional trade routes. The difficult terrain required Iranian engineers to build 100 tunnels,” noted Iran Observer.
This connectivity is anticipated to provide the shortest land route for landlocked Central Asian states to access a seaport, bypassing traditional routes through Pakistan. Afghanistan and Central Asian nations will not need to transit through Pakistan in near future to transport their goods to India.
The railway spans approximately 628 kilometers, with significant portions already completed. “Iranian engineers have overcome formidable challenges, including the construction of 100 tunnels through rugged terrain,” noted the post by Iran Observer.
The project’s strategic importance is further amplified by its integration into the International North-South Transport Corridor (INSTC), which aims to connect India, Iran, Russia, and Central Asia, enhancing trade efficiency.
However, the project has faced delays due to geopolitical tensions, sanctions, and funding constraints. Despite these hurdles, Iran’s determination to complete the railway reflects its commitment to positioning Chabahar as a key hub in global trade networks.
For India, the Chabahar-Zahedan railway offers a game-changing opportunity to access Central Asian markets and Russia without relying on Pakistani territory.
“For India, this route represents a chance for freight traffic to obtain a water/land connection to Russia, bypassing Pakistan,” added Iran Observer. This development aligns with India’s strategic vision to diversify its trade routes and reduce dependence on existing corridors.
Indian involvement in the project has been significant, with initial plans for financial contributions reported in 2020. Although uncertainties arose regarding funding, the railway’s completion could catalyze India’s export of goods to Central Asia and beyond, leveraging Chabahar Port as a critical node in the INSTC.
Experts have noted that “Chabahar exists because of India’s vision. Connecting Central Asia to the Indian Ocean was Delhi’s strategic masterstroke”. India has a long-term investment in the project and its potential to reshape regional trade dynamics.
Ali Abbas, a geopolitical analyst in a post on X, highlighted the broader implications, stating, “A great step for regional trade—Iran’s strategic position just became even more vital on the global map.”
The railway line is likely to enhance Iran’s role as a trade intermediary, benefiting India by providing an alternative route to energy-rich Central Asia and Russia.
The railway’s completion could significantly boost India’s trade with Central Asia, estimated at over $2 billion annually, by reducing transit times and costs. It also aligns with India’s “Look North” policy, aiming to strengthen economic ties with landlocked neighbours.
Moreover, the project could mitigate the impact of sanctions on Iran by fostering economic partnerships that bypass Western restrictions.
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