New Delhi: India on Friday said it remains committed to the Chabahar Port project in Iran and is in active dialogue with the United States to ensure its continuation under an existing sanctions waiver, even as rising tensions in Iran and fresh tariff threats and sanction wavier from Washington fuel uncertainty around the strategic initiative.
The Ministry of External Affairs spokesperson Randhir Jaiswal clarified India’s position in a weekly media briefing “New Delhi has received a formal communication from the US Treasury Department confirming that the sanctions waiver for Chabahar remains valid until April 26, 2026. He rejected suggestions that India is considering an immediate exit from the project.“
“The sanctions waiver we have received is valid until April 26, 2026. We are in discussions with the U.S. side to work within this framework,” Jaiswal said during a weekly media briefing, responding to questions on whether renewed American pressure on Iran could force India to reassess its involvement.
US tariff move raises concerns
The remarks come days after the Trump administration announced a 25 per cent tariff on countries doing business with Iran, triggering concerns about the future of projects operating under sanctions exemptions, including Chabahar.
Addressing the tariff issue, Jaiswal said India is closely tracking developments but emphasised that bilateral trade exposure to Iran remains limited. “In the last financial year, India’s total trade with Iran was $1.6 billion, with exports at around $1.2 billion and imports at about $0.4 billion. Iran accounts for roughly 0.15 per cent of India’s total global trade,” he said.
Officials said while the tariff threat is unlikely to have a significant direct economic impact, its diplomatic and strategic ramifications are being carefully assessed.
India’s broader approach towards Iran
Reiterating India’s diplomatic stance, Jaiswal said New Delhi shares a long-standing partnership with Iran and is closely monitoring the evolving situation there. “We are carefully watching developments on the ground and will calibrate our partnership accordingly,” he said.
India is a key stakeholder in the Chabahar Port, located in Iran’s Sistan-Balochistan province on the Gulf of Oman. The port plays a central role in India’s regional connectivity strategy by providing access to Afghanistan and Central Asia while bypassing Pakistan, which restricts overland routes.
Government sources said New Delhi is exploring ways to protect its investment without increasing exposure to sanctions-related risks. Options under consideration include operational restructuring and financial mechanisms that allow continued engagement while limiting direct government liability.
Strategic value of Chabahar
For India, Chabahar is more than a commercial venture. It is a strategic gateway anchoring India’s westward outreach and a critical component of the International North-South Transport Corridor (INSTC), a 7,200-km multimodal trade route linking India with Iran, Central Asia, Russia and Europe.
India has committed close to $500 million to the project through port operations, infrastructure development and connectivity initiatives. The foundational memorandum of understanding (MoU) between India and Iran for the port’s development was signed in 2016, marking a major milestone in bilateral relations.
Strategic experts warn that any Indian withdrawal could weaken New Delhi’s regional leverage and create space for rival powers to expand influence in the region.
Iran unrest and advisories for Indians
The debate around Chabahar is unfolding amid widespread unrest in Iran, where anti-government protests have reportedly resulted in over 2,500 deaths. Responding to a media query, Jaiswal said around 9,000 Indian nationals, mostly students, currently reside in Iran.
“In view of the situation, we have issued advisories advising Indians to avoid travel to Iran. Those living there are advised to return. We are keeping a close watch on the situation,” he said, adding that the Indian Embassy in Tehran remains in regular contact with the Indian community.
China angle adds complexity
Strategic analysts note that prolonged uncertainty over Chabahar could benefit China, which already has deep economic and political ties with Iran. Beijing is Iran’s largest trading partner and a major buyer of its sanctioned oil, and the two countries signed a 25-year strategic cooperation agreement in 2021 covering sectors such as energy, infrastructure and ports.
Experts caution that instability in Iran or hesitation by India could allow China to expand its footprint around Chabahar, potentially marginalising India’s presence and weakening its connectivity ambitions in the region.
calculated wait-and-watch Approach
India is currently following a wait-and-watch approach while continuing engagement on Chabahar under the existing sanctions waiver and addressing U.S. concerns through diplomacy, and factoring in instability within Iran.
For now, New Delhi has made it clear that there is no decision to pull out, underlining that Chabahar remains a critical pillar of India’s long-term strategic and regional connectivity interests, even as geopolitical headwinds intensify.
