Iran is actively reinforcing its commitment to the Chabahar Port project and expressing readiness to strengthen its ties with India. This comes at a time of geopolitical shifts, with Iran underscoring its strategic confidence in its relationship with India, viewing the Chabahar Port as an extension of a 3,000-year-old civilizational bond.
Dr. Mohammad Fathali, Iran's Ambassador to India, has emphasized the strategic importance of Chabahar Port as a vital connectivity hub, providing access to Afghanistan and Central Asia. He affirmed Iran's strong relationship with India and expressed eagerness to further enhance bilateral ties.
The Chabahar Port is strategically located in Iran's southeastern Sistan-Balochistan province. India has long viewed it as a strategic alternative route, playing a significant role in the International North-South Transport Corridor, facilitating easier access from India to Europe while also benefiting Iran and Russia. In May 2016, Indian Prime Minister Narendra Modi committed $55 million towards developing and operating the Chabahar Port as part of a trilateral relationship with Iran and Afghanistan. The port allows India to bypass Pakistan to reach Afghanistan and Central Asian markets and serves as a balance to the China-Pakistan Economic Corridor and the Gwadar port.
India has been involved in the Chabahar Port project since 2018 through India Ports Global Limited (IPGL) and its subsidiary, which manages the Shahid Beheshti Terminal. A 10-year contract, initiated on May 13, 2024, commits India to equipping and managing the facility, with a financial investment of USD 120 million for port equipment.
Despite the reaffirmation of ties, the Union Budget 2026 has not allocated fresh funds for the Chabahar Port, which received ₹400 crore in the previous fiscal year. This has led to speculation about whether the United States is pressuring India to pull back from the project, especially with the US increasing pressure on Iran. Earlier in January, Indian officials stated that New Delhi remains engaged with Tehran and Washington D.C. to find a solution. Some reports suggest India might be stepping back; however, official statements clarify that New Delhi is maintaining engagement with both Tehran and Washington to continue operations. The Ministry of External Affairs has confirmed ongoing coordination with the United States and reiterated long-standing ties with Iran, indicating that the partnership will move forward. India has invested billions in Chabahar over the years, completing most of its investments under the 2016 ten-year agreement and extending the 2024 ten-year operational deal, demonstrating its continued commitment.
Analysts believe that India values its relationship with the United States and does not want to risk angering a global power, and will seek diplomatic solutions with the United States rather than abandon the port. Given Chabahar's strategic importance, particularly for access to Afghanistan and Central Asia, India is expected to maintain its presence and engagement.