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Can Chabahar be a second OBOR gateway?

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9 years ago

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NEEDED, SOME PROACTIVE DIPLOMACY: Prime Minister Narendra Modi meets President of People’s Republic of China Xi Jinping ahead of the BRICS Summit in Goa, UNI

[vc_row][vc_column][vc_column_text]Gwadar need not be the only port of ingress and egress for the China-initiated transnational road-and-rail network; the India-Iran harbour route can be safer

By Sujit Bhar

Stated positions in international diplomacy change faster than pieces in a rapid chess match.  If frequent geopolitical shifts have to be addressed, they either have to be dealt with counter-moves, or through the opening of an alternative, surreptitious and camouflaged line of attack.

There is no defeat in international diplomacy, till you concede one.

The India-China position vis-à-vis the One Belt One Road (OBOR) initiative can reach a dead end if India cannot find that alternative route fast. The Chabahar Port route rests in a confused state as of now.

While in April Union minister Nitin Gadkari said work on the port is moving fast and that India has now got a two-year management contract for the port, India’s promise of a $ 500 million investment seems to be on a slippery surface, post problems arising out of Iran’s delaying tactics in awarding gas exploration contract in its Farzad B offshore field to ONGC Videsh. This was one by-product India was looking for within the Chabahar Port deal.

As per published reports, India has decided to reduce oil imports from Iran by three million tonnes, which translates to approximately 25 percent of the oil India imports from Iran. With India sourcing almost six percent of all its oil from that country, India will have to seek an alternative route. With oil prices down, this might not be such a problem, but Iran has not taken kindly to its second-largest customer (after China), cutting back on purchases. It has retaliated by cutting India’s payment schedule from 90 days to 30, as well as cutting back on freight discounts.

If one looks at these as pure business decisions, then there is no problem. Differences arise before they are solved. However, this seems to be connected to India’s political aspirations. Isolating Pakistan isn’t proving to be so easy. If Iran does think joining OBOR would be beneficial for it, a quick change of stance with respect to Pakistan would not be difficult. While India has several running defence deals with Iran, Iran has shown no bad intentions regarding Pakistan.

There is said to be a clause in India’s 16-year-old defence deal with Iran, which reportedly says that India might be given access to Iranian military bases in the event of a war with Pakistan. This, however, has not been openly confirmed by either country, which puts the viability of the deal into unknown territory.

AN OVERVIEW: A map pinpointing the locations of Chabahar and Gwadar ports

AN OVERVIEW: A map pinpointing the locations of Chabahar and Gwadar ports

Hence Iran’s intentions, as expected, revolve around its own interests. The Chabahar Port will be a value addition for Iran. If the CPEC goes forward, joining Gwadar Port with the overall OBOR system, how much latitude can India gain from the Chabahar port connecting Afghanistan, while staying away from OBOR?

Frankly, Chinese President Xi Jinping’s vision cannot be wished away by India. India would expect to get a better understanding of the OBOR initiative from the inside and not from a spectator’s perspective. That China has taken the lead in world geopolitics and across the financial world cannot be denied by India. There is little point in being an ostrich in a changing world. There are no stated positions.

India’s stated position about PoK need not change if there is a move towards accepting OBOR as inevitable, and in a partnership offer, one has to take financial options into consideration while dealing with the issue. Prime Minister Narendra Modi would need a face-saver, surely, because the opposition would be screaming murder if India agrees to attend the upcoming OBOR meet. But here is the dig. If OBOR is developed through partnership, and not through the primary dictates of China, there is a possibility that India can press for its own security system for its goods through the disturbed Baloch, PoK and Gilgit-Baltistan regions.

Let this be a practical discussion. Can India, though any international forum, possibly stop Chinese-Pakistani construction in disputed areas for the China-Pakistan Economic Corridor (CPEC) which happens to be an integral part of OBOR? One guesses not.

And, as China claims, will India’s not attending the OBOR meet completely isolate India? I guess not, too. This will also remain in the region of probability. However, there is a catch. If OBOR is an unqualified success, any late entry effort would not only require cost, but also present a positioning problem for India.

What if India sends an unqualified “yes” signal? Technically, that would mean accepting all existing norms, including, possibly, discussions on the Kashmir issue with a third party, something India has consistently refused to accede to. That would be the end of Modi’s tenure at the top.

What is the midway? Possibly sending a low-powered delegation to the OBOR meet? That would provide representation without accountability, because such a delegation would lack the authority to make decisions. In other words it would result in dragging feet, but India has huge experience in this. Any opportunity unexplored is no opportunity. If India refuses to acknowledge OBOR, its voice on PoK will be rarely heard.

There is a chance of forcing a change from within, and Chabahar is as good an entry and exit point for goods on OBOR as Gwadar. Does that sound like an alternative position? Two things to consider here. Xi has improved relations with Iran several-fold through his visit of the country. OBOR does not need to have just the CPEC route to use. What if it can use both? What if India can place a quick proposal that India’s proposed route can also connect to OBOR?

This is a disruptive thought. Floating it would be difficult, but not impossible. Could we think about this? India has invested in Chabahar and in developing railway lines to the north. OBOR will happen. While the CPEC is fraught with dangers, the India-Iran-Afghanistan route can be safer.

Let’s make the best use of it.[/vc_column_text][/vc_column][/vc_row]

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India and Russia vow to walk together against terrorism, reaffirm strategic partnership

PM Modi and President Putin reaffirm India-Russia unity against terrorism, deepen energy and trade cooperation, and discuss peace efforts amid the Ukraine conflict.

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4 hours ago

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December 5, 2025

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Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday underlined that India and Russia “walk together in the fight against terrorism,” reinforcing a decades-old strategic partnership that remains steady amid global geopolitical churn. The leaders issued the joint statement following talks at Hyderabad House in Delhi, where they also announced steps to boost trade, economic cooperation, and energy collaboration.

India-Russia stand firm on counter-terror cooperation

PM Modi described President Putin as a “dear friend” and highlighted Moscow’s consistent support to India on counter-terror efforts. Russia had earlier strongly condemned the terror attack in Jammu and Kashmir’s Pahalgam, allegedly linked to Pakistan-based Jaish-e-Mohammed, and reiterated solidarity with India’s fight against terrorism in all forms.

The joint remarks emphasized that the bilateral friendship, rooted in trust and mutual respect, has remained resilient for decades despite global challenges.

Focus on energy, trade and use of national currencies

A key highlight of the engagement was Russia reaffirming “uninterrupted shipments” of fuel to India. PM Modi expressed gratitude for Russia’s commitment, noting energy cooperation as a crucial pillar of the relationship. While he did not specifically mention oil purchases, given ongoing Western pressure, he emphasised cooperation in civil nuclear and clean energy.

The two countries also discussed expanding economic ties, including a possible free trade agreement. President Putin said bilateral trade was being targeted to reach USD 100 billion, and acknowledged progress toward using national currencies for payments — a remark expected to draw global attention.

Putin shares peace plan insights on Ukraine conflict

Putin briefed the Prime Minister on Russia’s perspective for a peaceful resolution to the ongoing Ukraine war and appreciated India’s continued role as a “champion of peace.” PM Modi reiterated India’s consistent position on dialogue and diplomacy.

Agreements across jobs, health, shipping and minerals

Officials exchanged multiple agreements covering employment mobility, health, shipping, chemicals and cooperation in critical minerals — further broadening the strategic footprint of the partnership.

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RBI cuts repo rate to 5.25%, paving the way for cheaper loans

The RBI has cut the repo rate to 5.25%, aiming to support growth as inflation softens. The central bank also raised GDP projections and announced liquidity-boosting measures.

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9 hours ago

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December 5, 2025

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Reserve Bank of India

The Reserve Bank of India (RBI) reduced the key repo rate by 25 basis points to 5.25% on Thursday, signalling relief for borrowers as banks are expected to offer lower EMIs on home and vehicle loans. Governor Sanjay Malhotra announced the move after the conclusion of the three-day Monetary Policy Committee (MPC) meeting.

RBI prioritises growth as inflation eases

Malhotra said the decision was unanimous, with the central bank choosing to focus on supporting economic momentum despite concerns over a weak rupee. The repo rate was earlier cut in June from 6% to 5.5% amid easing inflation trends.

The RBI now projects Consumer Price Index (CPI) inflation at 2% for FY2025-26, significantly softer than earlier estimates. For the first quarter of FY2026-27, inflation is expected at 3.9%, lower than the previous projection. The governor noted that rising precious metal prices may contribute to the headline CPI, but overall risks to inflation remain balanced.

GDP outlook strengthened

In a strong upward revision, the central bank increased the GDP forecast for the current financial year to 7.3%, previously estimated at 6.8%. Growth for the October–December quarter has also been revised to 6.7%.

The last quarter registered a six-quarter high expansion of 8.2%, reflecting resilient demand and steady credit flow.

“The growth-inflation balance continues to offer policy space,” Malhotra said, reiterating that the RBI’s stance remains neutral.

Other key decisions

Alongside the repo rate cut, the RBI announced adjustments to key policy corridors:

  • Standing Deposit Facility (SDF): 5%
  • Marginal Standing Facility (MSF): 5.5%

To improve liquidity and strengthen monetary transmission, the RBI will conduct forex swaps and purchase ₹1 lakh crore worth of government bonds through Open Market Operations (OMO).

RBI reviews a challenging year

Reflecting on 2025, Malhotra said the year delivered strong growth and moderate inflation even as global trade and geopolitical uncertainties persisted. He added that bank credit and retail lending remained healthy, providing support to the economy.

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India News

IndiGo flight chaos deepens as over 500 services cancelled, passengers stranded for hours

Over 500 IndiGo flights were cancelled nationwide, leaving passengers stranded without food, clarity or their luggage as airports struggled to manage the disruption.

Published

10 hours ago

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December 5, 2025

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IndiGo flight

India’s largest airline continued to face massive operational breakdowns, triggering frustration among travellers at major airports across the country. From piles of unattended suitcases to passengers waiting over 12 hours without food or clarity, the disruption stretched into its fourth consecutive day.

Long delays, no communication leave passengers anguished

Several travellers at Delhi airport described the situation as “mental torture”, as thousands of unclaimed suitcases lay scattered across the terminal. Many slept on the floor, while others expressed anger over the lack of communication from airline staff.

One flier said he had been waiting for over 12 hours without any explanation: “Every time they say one-hour or two-hour delays. We were going to a wedding but don’t even have our luggage.”

A passenger in Hyderabad recounted a similar ordeal, saying the flight was delayed indefinitely with no food, water, or updates from the airline. At the airport, some travellers blocked an Air India flight in protest over the lack of arrangements.

Goa and Chennai airports also witnessed tense moments. Videos from Goa showed fliers shouting at IndiGo staff as police attempted to calm the situation. At Chennai, CISF denied entry to IndiGo passengers due to heavy congestion.

Major metro airports impacted; cascading cancellations nationwide

Flight cancellations and delays were reported across multiple airports:

  • Over 200 flights were cancelled in Delhi
  • More than 100 each in Mumbai and Bengaluru
  • Around 90 in Hyderabad
  • Dozens more in Pune, Vishakhapatnam, Chennai and Bhopal

Pune airport stated that parking bay congestion worsened the situation, as several IndiGo aircraft remained grounded due to lack of crew. Other airlines continued operations without disruption.

Airport authorities said they had mobilised additional manpower for crowd control and passenger support.

IndiGo admits planning lapses, says more cancellations expected

The airline acknowledged a “misjudgment” in assessing crew requirements under revised night-duty norms, which it said created planning gaps. Winter weather and airport congestion further aggravated the crisis.

IndiGo informed the aviation ministry and DGCA that some regulatory changes—such as the shift in night-duty timings and a cap on night landings—have been rolled back temporarily to stabilise operations.

The airline warned that cancellations may continue for another two to three days, and from December 8, schedules will be trimmed to prevent further disruption.

In a message to employees, CEO Pieter Elbers said restoring punctuality would not be an “easy target”.

Airline issues apology amid nationwide frustration

In a late-night statement, IndiGo apologised to customers and industry partners, acknowledging the widespread inconvenience caused by the disruptions. The airline said all teams were working with authorities to bring operations back to normal.

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