New Delhi, January 17 — India is exploring various strategic alternatives to maintain its involvement at Iran’s Chabahar port as increasing US sanctions and pressure pose challenges to the crucial facility. Chabahar port, a key component of India’s regional connectivity plans, remains central to its efforts to strengthen ties with Central Asia and Afghanistan.
A six-month exemption from US sanctions granted during the Trump administration remains in effect until April 26, 2026, prompting the Indian government to urgently evaluate its options. The Ministry of External Affairs (MEA) confirmed on Friday that India continues to engage with Washington to clarify conditions and ensure safe participation in the project.
MEA spokesperson Randhir Jaiswal revealed that India is considering several measures, including halting its commitment of $120 million to reduce direct exposure to Chabahar. Another option under discussion involves creating a new entity to oversee the port’s development while minimizing risks to the Indian government.
The situation has been complicated by threats from the US to impose a 25% tariff on countries engaging in business with Iran, raising concerns about India’s role in developing the strategic port on Iran’s southern coast in Sistan-Balochistan.
Chabahar port plays a vital role in India’s connectivity strategy, serving as part of the International North-South Transport Corridor (INSTC). This 7,200-kilometer trade route links India with Central Asia, Russia, and Europe, providing direct maritime access to Afghanistan and Central Asia while bypassing Pakistan.
Despite geopolitical hurdles, Indian officials view this phase as a test of strategic balancing. Bilateral trade between India and Iran currently stands at $1.6 billion, with exports to Iran valued at $1.2 billion and imports at $0.4 billion.
