India signed a deal to develop the Chabahar port with Iran. Apart from the bilateral agreement between India and Iran, a trilateral transit and trade corridor deal was also signed by India, Iran and Afghanistan which would ensure easy movement of goods between the three countries, bypassing Pakistan.

The Chabahar port is situated in South Eastern part of Iran and on the northern coast of Gulf of Oman

It is surrounded by Afghanistan in the North, Pakistan in the North-East and India in the East.

The location of the Chabahar port is of strategic importance to India in linking trade routes from the Indian Ocean to Afghanistan, Central Asia and also to Europe; thereby avoiding a land route through Pakistan.