India, Iran and Afghanistan signed agreement

India, Iran and Afghanistan on 23 May 2016 signed the agreement on Trilateral Transit and Transport Corridor. The agreement was signed in the presence of Prime Minister Narendra Modi, President Hassan Rouhani of Iran and the Afghan President Ashraf Ghani in Tehran. The purpose of the agreement is to facilitate seamless transport of goods between India and Afghanistan via the Chabahar port that is strategically located in the South East of Iran. This agreement is expected to bring down cargo tariffs and boost regional economic development. Besides, India and Iran also signed an agreement for the development of the Chabahar port. This agreement is complementary to the agreement on Trilateral Transit and Transport Corridor. Under the agreement, India will develop the Chabahar port in Iran at an estimated cost of 150 million US dollars.