India is in communication with the United States to ensure the continuation of projects at Iran's Chabahar Port, according to a statement released by the Ministry of External Affairs (MEA) on Friday. This engagement is particularly crucial as the current U.S. sanctions waiver, which allows for uninterrupted operations at the port, is set to expire on April 26, 2026.
MEA spokesperson Randhir Jaiswal addressed reporters, stating that the U.S. Department of Treasury issued guidance on a Conditional Sanctions Waiver on October 28, 2025, which is valid until April 26, 2026. He affirmed India's commitment to working with the U.S. to find a resolution within this framework.
The Chabahar Port holds significant strategic importance for India, serving as a key gateway to Afghanistan, Central Asia, and Europe. It is also a crucial component of the International North-South Transport Corridor (INSTC), which aims to connect Mumbai to St. Petersburg and Europe, reducing reliance on longer sea routes. The port has been instrumental in shipping humanitarian aid, including food grains and medical supplies, to Afghanistan and Central Asia. Uzbekistan has also expressed interest in using Chabahar as an alternative trade gateway.
In 2024, India and Iran formalized their commitment to the Chabahar project by signing a 10-year agreement, replacing previous interim arrangements. This agreement was widely seen as securing India's long-term strategic presence in the region. India has invested approximately $120 million in the port project. Expansion plans include completing a 700-kilometer rail line linking Zahedan to Iran's rail network by mid-2026.
The U.S. had granted India a six-month exemption for Chabahar operations after the previous waiver expired. The current waiver allows India to maintain its development role at the port, which New Delhi views as critical for accessing Afghanistan and Central Asia, bypassing Pakistan.
Recent reports suggested India might be scaling back its involvement in the Chabahar Port project due to the potential threat of renewed U.S. sanctions. These reports indicated that all government-nominated directors had resigned from the board of India Ports Global Ltd (IPGL), the government-owned company managing India's interests in Chabahar, and that the company had curtailed public operations. However, the MEA has denied these reports, asserting that India has not decided to exit Chabahar.
The situation is further complicated by recent statements from former U.S. President Donald Trump, who has announced 25% tariffs on countries doing business with Iran. This move has raised concerns within the Indian government about the risk of secondary sanctions on public sector entities and officials.
Despite these challenges, the Indian government maintains that it is committed to the Chabahar project and is actively working to secure an extension of the sanctions waiver. The port remains a vital component of India's regional strategy and its efforts to promote trade and connectivity in the region.
