Iran Crisis: India To Remain Engaged In Chabahar Port, Working With US On Sanctions Waiver

New Delhi: The Indian government has dismissed media reports claiming that India has withdrawn from Iran's Chabahar Port project. Ministry of External Affairs spokesperson Randhir Jaiswal clarified the situation on Friday, stating that the US has granted a waiver from sanctions for this project, which is valid until April 2026. 

The government's clarification comes after the Congress party alleged that Prime Minister Narendra Modi had relinquished control of the Chabahar Port project and surrendered to the US under the Trump administration.

What are the ongoing discussions with the US?

"As you know, on October 28, 2025, the US Treasury Department issued a letter. It mentioned a conditional waiver, which is valid until April 26, 2026. We are in constant contact with the US side regarding this arrangement," MEA spokesperson Jaiswal said.

What is the issue the government clarified?

In 2024, India and Iran signed a 10-year agreement to develop the Shahid Beheshti Terminal at Chabahar. However, the US revoked an earlier waiver granted in 2018, raising concerns about potential US sanctions on those working on the project. Last year, however, the US granted India a six-month extension to continue work, effective from October 29.

Why is Chabahar important for India?

Currently, India can continue working on the project without fear of US sanctions until April. This port is crucial for India as it allows for direct trade and connectivity with Afghanistan and Central Asian countries without having to go through Pakistan.

What are the risks for India?

The current instability in Iran poses numerous risks for India. Experts believe that while India may not face direct economic consequences, it is bound to have long-term impacts. Iran itself controls the Strait of Hormuz, and its pro-Houthi allies control the Red Sea. If there is an external attack from the US or Israel, and the situation spirals out of control, trade could be affected. Such instability could impact maritime traffic, increase shipping insurance costs, and lead to higher oil prices.

Iran's stability is of great importance to India due to energy security, the Indian diaspora, and the Chabahar port. If the Chabahar port and the International North-South Transport Corridor are affected, it could pose a new threat to India's connectivity with Central Asia.
International affairs expert Anil Trigunayat says that instability in Iran is not good for us. In such circumstances, we should prioritize the importance of stability in our West Asia policy. These regions are important to us. Whether it's the UAE or Saudi Arabia, these countries in West Asia hold a special place in our foreign policy. In this context, India is pursuing a policy of strategic autonomy. Maintaining balance in foreign policy remains a constant challenge for India due to strained relations with the United States, but India is treading a steady path.