Indian Prime Minister Narendra Modi announced on Monday the availability of about $500 million to invest in the development of the strategic southern Iranian port of Chabahar. The objective: Develop a sea-land access route to central Asia while bypassing neighbor Pakistan, with which India's historically had thorny relations.
The announcement was part of a number of agreements to boost economic ties with Iran that Modi signed with President Hassan Rouhani, during an official state visit.
Based on the agreements, India would build and operate two terminals and five berths with cargo handling in the Chabahar port.
Later Monday, India also signed a trilateral agreement with Iran and Afghanistan to develop a transport and transit corridor between the three countries through Chabahar, which Modi said would allow for the unhindered flow of commerce, capital and technology through the region.