India has made it clear that exiting Iran’s strategically vital Chabahar port is “not an option,” underscoring the project’s central role in New Delhi’s regional connectivity and geopolitical strategy, even as U.S. sanctions pressure mounts.
The Ministry of External Affairs said India is in discussions with the United States Department of the Treasury to implement a short-term sanctions waiver that would allow continued work at Chabahar beyond April 26, 2026. The clarification followed reports suggesting India might be forced to withdraw under pressure from the administration of Donald Trump, which has warned of an additional 25 per cent tariff on countries doing business with Tehran.
Foreign Ministry spokesperson Randhir Jaiswal said the U.S. issued guidance on Oct. 28, 2025, granting India a conditional waiver valid until late April 2026. “We remain engaged with the U.S. side in working out this arrangement,” he said.
Located in Iran’s Sistan-Balochistan province, Chabahar is India’s only viable western gateway to Afghanistan and Central Asia, bypassing Pakistan, which blocks India’s overland access. The port lies outside the Strait of Hormuz and is a key node in the International North-South Transport Corridor, a 7,200-kilometre network linking the Indian Ocean and Persian Gulf to northern Europe via Saint Petersburg.
In 2024, India signed a 10-year agreement with Iran under which state-run India Ports Global Ltd committed about $370 million to the project, signalling a long-term strategic stake. Officials say Chabahar is critical to India’s ambitions to grow its economy to $10 trillion by 2030 and $15 trillion by 2034 by ensuring stable trade routes and access to new markets.
Government sources told PTI that India is considering transferring roughly $120 million already committed to the project and may create a new entity to continue development, a move aimed at limiting direct exposure while maintaining support for the port.
Chabahar has previously received rare U.S. exemptions, including during Trump’s first term in 2018, recognizing its role in regional connectivity and humanitarian access to Afghanistan. Although Washington revoked that waiver last year, it later granted India a six-month extension.
India said the latest U.S. tariff threat is expected to have minimal impact, noting limited bilateral trade with Iran. Two-way trade stood at about $1.6 billion last year, with Indian exports accounting for $1.2 billion.
Officials stressed that for India, Chabahar is far more than a commercial project—it is a strategic lifeline shaping its regional influence, trade security and humanitarian outreach, making withdrawal a non-starter.