India assisting Iran to setup transport corridor through Iran
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India is also helping Iran in its quest to become the transportation hub linking the Persian Gulf to Central Asia by building a transport corridor that will link India with Central Asia through Afghanistan and Iran. As part of this project, India will assist Iran in modernizing the southeastern Chahbahar port on the Strait of Hormuz, connecting it to the main roads. India also signed a memorandum of understanding more than a year ago with Iran and Turkmenistan to facilitate Indian exports to Central Asian countries by rail across Iran from the port of Bandar Abbas, which links the Persian Gulf to the Gulf of Oman. There also is an agreement among Russia, India, and Iran to construct the North-South International Transport Corridor. The creation of an East Corridor con- necting Uzbekistan, Iran, and Afghanistan is also being discussed.
India has growing economic ties with Iran and is investing heavily in its energy sector to provide a reliable source of fuel for India's growing economy. Strategically, while being careful not to upset its relations with the U.S. or the West, India also looks to Iran as a potential balance against Pakistan.