Why India Is Scaling Back Its Role At Iran’s Chabahar Port Amid US Sanctions Pressure

New Delhi: India recently seems to be reconsidering its participation in Iran's Chabahar Port project. The port has not just been an infrastructure project for New Delhi but a strategic route providing direct trade routes to Afghanistan and Central Asia, bypassing Pakistan. But amid the tough sanctions and uncertainty imposed by the US, India is preparing to limit its role, which is likely to impact the regional connectivity strategy.

What impact did US sanctions have on the Chabahar project?

America has again imposed sanctions on Iran. The exemption was revoked by the Trump administration in 2025. Due to this, India has to face strict surveillance and constraints. The OFAC unit of the US Treasury Department has kept a special eye on this.

Why did India reduce its direct share?

According to reports, India has already sent investments worth about $120 million to Iran. With this, India's financial commitment is considered to have been fulfilled. With this, the board members of India Ports Global Limited (IPGL) have resigned.

Has India completely isolated itself from ports?

The government has refuted this claim, saying it has completely withdrawn. The Ministry of External Affairs has said that the waiver is valid till April 26 and talks are ongoing with the US. India's focus is now on managed and limited participation in this project.

Why has Chabahar been important for India?

Chabahar Port gives India access to Afghanistan, Central Asia, and Russia. This reduces dependence on traditional routes. It is also an important part of the International North-South Transport Route (INSTC).

What talks are going on between America and India?

The Foreign Ministry spokesperson has said that special talks are going on with America. The new arrangement seeks to ensure that Indian officials are not subject to any punitive sanctions.

What effect will this have on regional politics?

According to experts, apart from crude oil and trade sanctions, the US-Iran tension is also affecting India's strategies. This step of India raises questions on regional balance and strategic interests.

What could happen next?

The validity of the exemption is till April 2026, after which the situation will be clear. The challenge before the Indian leadership is how to protect its regional interests while maintaining a balance with America.