The escalating conflict between Israel and Iran has sent shockwaves across the global strategic landscape, with repercussions that extend well beyond the borders of West Asia. Among the most directly impacted is India, whose long-term economic and geopolitical ambitions are closely tied to regional stability—particularly through two critical initiatives: the Chabahar Port and the International North-South Transport Corridor (INSTC).
As hostilities intensify, India is being forced into a complex diplomatic balancing act to protect its strategic interests and maintain its vision of seamless connectivity with Central Asia, Russia, and beyond.
Chabahar Port: India’s Strategic Access Point
India’s investment in Iran’s Chabahar Port is not merely a commercial endeavor—it represents a key strategic counterweight to China’s growing presence in the region, notably through the China-Pakistan Economic Corridor (CPEC) and Gwadar Port. Operational since 2017 under a trilateral agreement between India, Iran, and Afghanistan, Chabahar allows India direct access to Afghanistan, bypassing Pakistan, and opens vital trade and security links to Central Asia.
However, Iran’s central role in the current conflict—amid escalating airstrikes, proxy engagements, and a polarized Gulf—now puts the port’s viability at risk. Potential attacks, infrastructure vulnerability, or intensified Western sanctions could all restrict India’s ability to fully develop or utilize Chabahar as planned.
INSTC: A Trade Lifeline Through Volatile Terrain
The INSTC is another pillar of India’s strategic connectivity blueprint. This multimodal corridor connects Mumbai to Moscow via Iran and the Caspian Sea, significantly reducing the time and cost of transporting goods between India, Russia, and Europe.
Iran’s geographic position is critical to the INSTC. Yet, ongoing conflict raises the specter of disrupted airspace, compromised cargo routes, and renewed sanctions. The corridor’s dependence on Iranian infrastructure—railways, highways, and ports—further exposes it to breakdowns in logistics or diplomatic ties. The result: private investors may hesitate, and freight operations could face serious delays.
India’s Tightrope Diplomacy
India’s measured response to the crisis reflects its long-standing policy of strategic autonomy. While it shares deep defense and intelligence cooperation with Israel, it also nurtures robust cultural, economic, and energy ties with Iran—recently reinforced through efforts to formalize a long-term agreement on Chabahar Port.
So far, India has called for restraint and de-escalation without aligning with either side. But this neutral stance may become harder to maintain if Western pressure intensifies, especially from the United States.
Complicating matters further are India’s close trade relations with Russia. Moscow sees the INSTC as a key alternative to Western-controlled routes, and India is equally invested in keeping that pathway stable. At the same time, Iran also serves as a crucial link for India to engage with Taliban-ruled Afghanistan, without directly legitimizing it.
Connectivity as a Geopolitical Lever
India’s connectivity goals are more than just trade routes—they are strategic assets. As China expands its Belt and Road Initiative (BRI), India’s focus on Chabahar and the INSTC represents an alternative development model rooted in inclusivity, sovereignty, and multilateral cooperation.
Preserving these corridors not only enhances India’s access to energy and markets but also strengthens its influence in multilateral forums like the SCO and BRICS. Disruption in West Asia could derail this effort—jeopardizing India’s long-term ambition to act as a continental bridge between East and West.
Diplomacy in the Eye of the Storm
As the Israel-Iran conflict unfolds, India’s strategic calculus surrounding Chabahar and the INSTC hangs in delicate balance. These projects are not merely economic—they symbolize India's regional aspirations and geopolitical agency.
To safeguard these interests, India must now employ skillful diplomacy, strategic patience, and proactive economic planning. The road ahead may be turbulent, but the stakes are too high to retreat.
Akansha Sharma is a trainee journalist at Cult Current. The views expressed in the article are
her ownand do not necessarily reflect the official stance of Cult Current.