The new port memorandum signed by India and Iran on Wednesday opens the entire region to trade and cooperation, an Iranian expert says.

India’s new Chabahar port deal with Iran will become a hub of economic activity which will grant India economic access to Russia, Central Asia and Afghanistan, Iranian analyst and vice-president of the Iran and Eurasia Research Center (IRAS) Mandana Tishyar told Sputnik.

The agreement was reached following comprehensive talks between visiting Indian Transport and Highways Minister Nitin Gadkari and Iranian Minister of Transport and Urban Development Abbas Ahmad Akhoundi on Wednesday, Press TV reported.

It would allow India to build a port in Iran. The agreement took place despite U.S. warnings against deals with Iran before the nuclear agreement is reached before the deadline on June 30.

“This memorandum was signed by the two countries’ governments and not individual companies, so this project will be completed. The design and development of this port are not in the list of entities which fell under Western sanctions,” Tishyar told Sputnik.

According to Tishyar, the port will benefit not only Iran, but also the entire region as part of Russia, India and Iran’s “North-South” transport corridor project. The project is parallel to China’s East-West Silk Road.

In April, China promised India’s neighbor Pakistan over $46 billion in investment and development deals as part of the Pakistan-China Economic Corridor.

“The Chabahar port development could really help our countries strengthen and develop a strategic trade partnership,” Tishyar said.

India plans on investing over $85 million in Iran new port’s construction.

The U.S. has warned India and other countries not to rush into doing business with Iran until the country’s nuclear talks are finished by a June 30 deadline.

Located on the confluence of the Indian Ocean and the Sea of Oman, Chabahar is India's first foreign port project. Once completed, the project would enable India to send its goods from Chabahar to Afghanistan, Central Asia and beyond.

(Source: Sputnik)

MD/PA