"We import gas, urea, fertiliser through that port; the distance between Chabahar to Gujarat is less than Delhi to Mumbai," shipping minister Nitin Gadkari said.
The country's cabinet is considering the plan in the next two weeks, he told reporters.
A joint venture between Jawaharlal Nehru Port Trust (JNPT) and Kandla Port will modernise Chabahar if the deal is approved.
Oil will also be exported to India from the terminal.
