Indian Prime Minister Narendra Modi recently embarked on a two-day sojourn to Iran, his first since taking the office, and four months after the lifting of international sanctions on Iran. One of the more important international trips of Indian Premier, the visit was closely followed by the regional players as a number of of strategically important agreements were expected to be signed. The focal point of the visit was the Chabahar port, situated at a distance of approximately 100 kilometre from the Gwadar port being developed by Chinese government under the China-Pakistan Economic Corridor (CPEC) in Pakistan. The commercial contract with Iran will allow India to build and run a strategic port on Iran’s southern coast to ‘curb the influence’ of China in the wake of Gwadar port development. The talks for building the port were going on for years, but international sanctions on Iran were the main hindrance in signing an agreement. But since the scaling back of sanctions, India has pushed hard for the project to avoid loss to other regional players like China. On Monday, Iran, India and Afghanistan signed an accord to develop a trade route with Chabahar being the hub. Under the agreement, India is expected to invest 500 million dollars in the project. Moreover, many rail and road development projects were also signed, connecting the port of Chabahar to the major cities of Iran and Afghanistan. India has already been establishing road network in Afghanistan to connect in with the Chabahar port. The port of Chabahar is of extreme importance to India as it not only counters threat to regional power balance but also provides it a route to the land-locked Afghanistan and the Central Asian Republics. Pakistan doesn’t allow India land access to Afghanistan through its territory. For this purpose, Indian government is determined to find alternate routes to access the Central Asian markets. Furthermore, the development of Chabahar port will decrease the dependability of Afghanistan on Pakistani ports. It will provide Afghanistan a reliable alternative route to India via sea. Post-sanctions Iran has provided mixed signals, but many have touted it as the next big economic story. The policy makers in Pakistan need to take into account the developments in Iran. The work on CPEC projects needs to be expedited. The land routes through Pakistan provide most feasible option for landlocked Afghanistan and the Central Asian Republics, and Pakistan should exploit the opportunity to capture the market. The CPEC is the leading cause for India pushing hard for the development of the port to counter regional influence. Moreover, the regional security of west Asia might also be a cause of concern for Indian government as more than seven million Indian nationals work in the middle-eastern states. With the current turmoil throughout the region, India would look to take care of its interests in the region. The trilateral agreement with Iran and Afghanistan will not only benefit India economically but also provides it a footing to consolidate its power in the region. *