India to speed up Chabahar rail link

India plans to revive and fast-track a 700-km rail link to connect Iran's Chabahar port with Zahedan near its border with Afghanistan, as New Delhi aims to strengthen trade access to Central Asia and Eurasia amid signs the Gulf conflict is easing, two people familiar with the matter said.

- Subhash Narayan & Ramita Mehra

The issue is expected to figure in discussions between Indian and Iranian officials, with New Delhi keen to leverage improving regional stability to boost connectivity projects that had slowed amid geopolitical uncertainties, one of the two people said on the condition of anonymity.

Under a recent peace agreement, the US has agreed to lift sanctions on Iran and to allow the export of crude oil and petroleum products. This has revived the prospects of Iranian crude returning to India on a consistent basis after a seven-year gap, with the rail link expected to facilitate oil exports at competitive rates. The move also aligns with India's broader aim of diversifying trade routes and reducing dependence on traditional shipping corridors.