THIS AFTERNOON: India eyes Chabahar revival; Jaishankar concludes Qatar visit

Good afternoon, friends. Indian lenders stopped extending fresh exposure in Gulf countries in May. Banks are tightening risk filters and may turn more selective in lending as they wait to see whether Gulf uncertainty settles or deepens.

Mubadala-backed Manipal Hospitals has SEBI’s green light for what could be a USD 12 bn listing. Plus: India is fast-tracking a long-delayed transportation project in Iran, wagering that the US-Iran truce will reopen the sanctions waivers that stalled it. Foreign Minister S. Jaishankar wrapped up a Qatar visit thanking Doha for its role in mediating the US-Iran talks.

India eyes Chabahar revival

India is moving to fast-track the long-delayed 700-km rail link connecting Iran’s Chabahar port with Zahedan near the Afghan border to secure trade access to Central Asia and Eurasia, Mint reports, citing unnamed sources.

What’s changed? The renewed push comes on the back of the US-Iran truce agreement, which reopened the possibility of US sanctions waivers. Iran is expected to fund most of the estimated USD 1.5 bn project, with India contributing USD 400-500 mn alongside engineering expertise.

Gateway to Central Asia: The Chabahar-Zahedan corridor is the missing rail link connecting the strategic port to Iran’s national railway network and the International North-South Transport Corridor. Completing it would give India a shorter, cheaper route into Afghanistan, Central Asia, and Eurasia. Building the rail link would enhance the port’s commercial viability and give India a hedge against competing regional trade corridors such as the China-Pakistan Economic Corridor.

Sanctions relief is the real gate: India is cautiously optimistic that the Iran-US peace agreement could ease the sanctions bearing on its Chabahar investments — either through a broader rollback or the restoration of a US sanctions waiver that previously allowed the project to proceed, the Hindu Businessline reports.

That waiver expired in April, stalling India’s expansion plans. The war halted operations entirely despite India Ports Global’s 10-year agreement, signed in May 2024, to run the Shahid Beheshti terminal.

What’s next? New Delhi is monitoring the fragile Iran-US peace process, which includes a roadmap for lifting sanctions. It has raised the issue with Washington, asserting Chabahar’s strategic importance and seeking clarity on future sanctions. These projects are expected to feature in upcoming India-Iran talks as New Delhi looks to revive connectivity initiatives stalled by regional tensions and sanctions.

Jaishankar wraps up Qatar visit

India’s External Affairs Minister S. Jaishankar met with Qatar’s Prime Minister and Foreign Minister Mohammed bin Abdulrahman Al Thani in Doha to discuss bilateral ties, regional issues, and ways to deepen cooperation, according to a statement. The meeting was part of Jaishankar’s visit to Qatar, which concluded on Saturday.

On the table: India and Qatar agreed to explore new avenues for trade, investment, and energy cooperation, reinforcing a relationship that has expanded beyond hydrocarbons. Jaishankar also praised Qatar for its “prominent and proactive” role in facilitating dialogue between the US and Iran, underscoring New Delhi’s support for efforts to preserve stability across the Gulf.

Why it matters: India has a strong economic incentive for Qatar’s mediation to succeed. The Gulf country supplied close to 40% of India’s total LNG imports as of 2025, while QatarEnergy and India’s Petronet LNG signed a 20-year agreement last year to supply around 7.5 mtpa of LNG. Any renewed US-Iran tensions that disrupt shipping through the Strait of Hormuz could threaten those supplies and ripple through India’s energy market.

ICYMI- India is prioritizing its freetrade agreement talks with Qatar while also negotiating a bilateral investment treaty. Doha is one of India’s key trade partners within the GCC bloc, with bilateral trade reaching USD 14.1 bn in FY 2025.

Dispute stalls India’s UAE consular outsourcing transition

India’s diplomatic missions in the UAE were forced to temporarily bring consular services in-house after a judicial dispute delayed the transition to a new outsourced service provider, Times of India reports. Indians living in the UAE are crowding the embassy in Abu Dhabi and the consulate general in Dubai for consular services amid disruptions ahead of the peak summer travel season.

What happened? India awarded the UAE consular outsourcing contract to Alhind Tours & Travels after it emerged as the lowest financial bidder, replacing BLS International which had managed passport and consular services since 2011. However, two unsuccessful bidders challenged the tender process in the Delhi High Court, delaying Alhind’s takeover despite the company completing operational preparations.

Services disrupted: Since 1 July, the embassy and consulate have been directly handling limited consular services while prioritizing emergency cases. The previously announced online appointment system has effectively been deferred until the transition is complete.

Pressure on missions: The temporary arrangement has triggered heavy demand, with more than 1.4k applicants visiting the Dubai consulate on a single day.

What’s next: Alhind said it has completed preparations, including setting up 16 Indian consular application centers across all seven emirates, and will assume operations once court proceedings conclude.

The big story abroad

Nato’s two-day summit kicks off tomorrow in Ankara and discussions are expected to revolve around the ongoing Russia-Ukraine conflict, the US-Iran war, and US President Donald Trump’s comments on Greenland. Trump demanded “loyalty” from the coalition ahead of the summit, where he is scheduled to meet with the heads of state of Turkey, Syria, and Ukraine.

The spread of AI use in financial services has triggered an “arms race” for regulators, according to Sheldon Mills, executive director of the UK’s Financial Conduct Authority. Mills argues that regulators need greater powers to monitor the rapid growth of AI, namely large language models, and underlined concerns over the softwares’ bias, opaque pricing, and personalized manipulation.

Meanwhile, in aviation: British low-cost airline EasyJet has agreed in principle to the fifth takeover bid proposed by global alternative investment firm Castlelake LP, valuing the company at USD 7.3 bn. The budget carrier has been struggling with rising jet fuel prices and muted demand since the regional war broke out.

Trump finagles Balogun favor from FIFA? FIFA will allow the US top goal scorer Folarin Balogun to play in the upcoming showdown with Belgium — despite the footballer earning a red card in his last match — after Trump urged FIFA President Gianni Infantino to review the suspension. This move marks the first reversal of its kind since 1962 and has drawn criticism from many, including the Belgian federation.

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