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India sidesteps Pakistan in trade with big investment push for Iran's Chabahar

Chahbahar port has been in existence for quite a while. It was initially conceived during Shah’s time in 1973. Iranian revolution delayed the implementation of the plan but it has been operational since 1983 and it was extensively used during the long Iran –Iran conflict. Bandar Abbas; the main Iranian port; is highly congested and Iran decided to develop Chahbahar as a deep sea port as early as 2002.

India, along with Oman, Uzbekistan, Turkmenistan, Kazakhstan & Iran are part of the Ashgabat agreement to develop the shortest trade route between Central Asia & India. Now because of Pakistan’s refusal to let Indian goods transit passage to Afghanistan, Afghanistan has also joined.

Development of Chabahar port had been in abeyance primarily because Iran was under UN sanctions. Now that this impediment is no longer there, India with loads of Foreign Exchange is pushing ahead.

There is very little Pakistan can do about it.

Pakistan give monkies about it. Its the GCC and China which will have the say on it. We are solely focused in creating inter dependency with the richest nation on the planet, the Chinese.
 
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GDP per capita data is always skewed and favours the countries with smaller population and also depends upon how it is calculated. Qatar comes on top because total population including the expatriates is just above 2-million. Qatari nationals being only 25%. Out of the 75% expatriates except for a few traders and high officials, majority are labourers & low paid office workers who earn learns than 4000 Riyals per month ( about $1,000 per month).


Perhaps a better way to look at a country’s economic strength is its total GDP. The following is the list according to CNN. Even this data is skewed.Russia's GDP in $ terms declined because of the fall in oil prices & the sanctions, hence she is not listed. Do people really consider Russia poorer than Brazil & India?


http://money.cnn.com/news/economy/world_economies_gdp/
 
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GDP per capita data is always skewed and favours the countries with smaller population and also depends upon how it is calculated. Qatar comes on top because total population including the expatriates is just above 2-million. Qatari nationals being only 25%. Out of the 75% expatriates except for a few traders and high officials, majority are labourers & low paid office workers who earn learns than 4000 Riyals per month ( about $1,000 per month).


Perhaps a better way to look at a country’s economic strength is its total GDP. The following is the list according to CNN. Even this data is skewed.Russia's GDP in $ terms declined because of the fall in oil prices & the sanctions, hence she is not listed. Do people really consider Russia poorer than Brazil & India?


http://money.cnn.com/news/economy/world_economies_gdp/
As per this norm also china will remain second largest economy not the richest economy of the planet even till 2020
 
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Many people may not be aware that a rail-route already exists between China & Iran. I had come across this following a couple of weeks back while surfing the internet.

Iran, China and the Silk Road Train
The Yiwu-Tehran train is a significant part of Beijing’s plans for regional integration.

By Sudha Ramachandran
March 30, 2016


The freight train from China that pulled into Tehran a little over a month ago created history by becoming the first train to revive the ancient Silk Route between China and Iran.

Ferrying 32 containers of cargo, it left Yiwu in China’s eastern Zhejiang province on January 2, snaking its way through Kazakhstan and Turkmenistan before entering Iran. It took the train 14 days to cover the roughly 10,399 km long journey to Tehran.

Part of the overland component of China’s One Belt, One Road (OBOR) initiative, the Yiwu-Tehran rail link slashes travel time between China’s east coast and Iran. Its arrival “in less than 14 days is unprecedented,” the head of the Iran Railways company Mohsen Pourseyyed Aqai said. Ferrying cargo via the sea from Shanghai, which lies 300 km north of Yiwu, to the Iranian port of Bandar Abbas takes 45 days in comparison.

The China-Iran “Silk Road train” will run once a month. Its frequency will increase as trade picks up. China’s economic co-operation with Iran, which deepened through the sanctions period – bilateral trade grew from $4 billion in 2003 to $53 billion in 2013 – is expected to soar in the coming years as Beijing and Tehran are eyeing stronger trade ties. In January, during the visit of Chinese President Xi Jinping to Iran, the two sides agreed to increase trade to $600 billion over the coming decade.

The train from Yiwu used existing rail links to run to Iran. China proposes to build new high-speed rail links through Central Asia. Trains carrying Chinese goods will then not terminate at Tehran but run further on to European markets. Besides facilitating Sino-Iran trade, these rail lines will contribute to Iran’s emergence as an important Eurasian trade hub. They will generate income for Iran from transiting trains and integrate it more firmly into the economies of East and Central Asia as well as Europe.

The Yiwu-Tehran train underscores China’s plans for regional integration “with Central Asia as the main hub,” Aryaman Bhatnagar, policy advisor, Peace & Security Programme at Friedrich Ebert Stiftung–India told The Diplomat, drawing attention to China’s significant investment “in both Iran and the Central Asian region for years, especially in the infrastructure sector.”

This investment in internal and trans-border road and rail connectivity has resulted in a massive network that connects China with different parts of Asia and Europe. There is, for instance, the roughly 13,000 km-long railway line – the world’s longest – linking Yiwu with Madrid.

Thus the Yiwu-Tehran railway is “just one of the many projects that enhance regional connectivity, bringing together China, Central Asia, the Persian Gulf and West Asia,” observes Bhatnagar.

Pointing to its significance, he said it is “the most recent example” that proves that China’s OBOR initiative “is not just a ‘pipe dream’ or something that exists only on paper. It confirms that “creating the vast network” that the OBOR envisages “is actually possible with China at the helm.”

Additionally, the Yiwu-Tehran railway lays bare the shortcomings of the narrative on Afghanistan’s possible emergence as trade and transit hub. It shows that regional integration in Central Asia is possible despite instability in Afghanistan and that “China does not need Afghanistan to access the Persian Gulf and beyond,” Bhatnagar pointed out, adding that Beijing “has direct connectivity with Central Asia and can use its existing transport network to fulfill its larger strategic goals.”

Analysts have compared China’s OBOR project through Iran to the one that runs via Pakistan. Unlike the China Pakistan Economic Corridor (CPEC), which runs through Pakistan’s insurgency-wracked Khyber Pakhtunkhwa and Baluchistan provinces, the route via Iran “faces fewer security threats,” argues C Raja Mohan, a noted Indian strategic affairs analyst. What is more, “while building a railway over the Karakorams is a major engineering challenge, China’s Iran corridor only needs to modernize the existing road and rail links between China, Central Asia and Iran.” The Iran route thus has “more chances of success” than the CPEC route to the Arabian Sea, he points out.

Bhatnagar rules out competition between the two routes. The Iran route does not undermine CPEC, he says. The routes “are complimentary in nature and all part of the broader OBOR initiative,” he argued, adding that the projects will “help in creating a broader network of roads, railways and pipelines that would benefit China majorly but the region as a whole as well.”

India will be watching China’s OBOR infrastructure-building in Iran closely. Hitherto, it has responded warily to the OBOR initiative in general, opposing it as a unilateral Chinese initiative that Beijing is pursuing in its own strategic objectives. Indian opponents of the OBOR have described the Maritime Silk Route, for instance, as a “benign-sounding new name for Beijing’s ‘string of pearls’ strategy’” to encircle India.

Rather than reject the OBOR in its entirely or embrace it unquestioningly, some like former Indian Foreign Secretary Shyam Saran suggest a more nuanced approach that involves participation in “those components of the OBOR which may, in fact, improve India’s own connectivity to major markets and resource supplies,” while having “no truck with projects that run against Indian interests.”

Thus India should not participate in CPEC, which runs through Gilgit-Baltistan, over which India has territorial claims. However, it should work with Iran and China to develop Iran’s trade and transport infrastructure. “Instead of seeing Chabahar [port] as an Indian rival to China’s Gwadar project in Pakistan, Delhi should offer to work with Tehran and Beijing to develop Iran’s ports and enhance its road and rail connectivity,” Saran argues.

This would be in India’s interest, as it has been eyeing overland access via Iran to Central Asian markets for some time now. With Tehran poised to emerge as an important transit hub in the Asia-Europe trade, India would gain overland access to Europe as well.

Dr. Sudha Ramachandran is an independent journalist/researcher based in Bangalore, India. She writes on South Asian political and security issues and can be contacted at sudha.ramachandran@live.in.

http://thediplomat.com/2016/03/iran-china-and-the-silk-road-train/
 
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China is using Pak to gain strategic command, India is using Iran for the same purpose. Its always between China and India. Pak has nothing to be worried about these developments.
 
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And the distance will be double as compare to gawadar .
how ?

distance between kandla and chabahr or mumbai to chabahar is less than distance between delhi to mumbai and a large cargo ship can tranport more than 6 trains in a single trip and look at the map again distance between say amritsar to afghanistan and then central asia ... think about it :coffee:

CHB-ASG.JPG
 
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keep these so called links to yourself son, a nation which lend America, the sole super power, more then trillion dollars, will give the middle finger to such comparison.

While we are at it, check your underwear, it might have "Made in China" label on it.

After USA, it is China now. Lucky Pakistan!!

Do you understand the meaning of "Mutual inter dependencies"? Try to understand what I wrote, then perhaps we can take this conversation further.
 
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Do you understand the meaning of "Mutual inter dependencies"? Try to understand what I wrote, then perhaps we can take this conversation further.

Yep, like America gives Pakistan tons of dollars in return of its right to use Pakistani soil for fighting war against the Taliban both inside and outside of Pakistan.
 
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