How Chabahar matters: Why India says exiting the Iranian port is ‘not an option’
Uncertainty looms over the India-operated Chabahar port as the US sanctions waiver deadline approaches and former US President Donald Trump threatens fresh tariffs on countries doing business with Iran. The MEA said India remains engaged with Washington to safeguard the strategic project.
New Delhi: Tensions have escalated after US President Donald Trump threatened to impose an additional 25 per cent tariff on countries doing business with Iran, adding fresh uncertainty to the India-operated Chabahar port project. India is currently under a six-month conditional US sanctions waiver, which is set to expire in late April. Officials are engaged in intense negotiations with Washington to safeguard the strategically important connectivity project.
On the issue, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said the US Department of the Treasury had issued a letter outlining guidance on the conditional sanctions waiver, valid until April 26, 2026."We remain engaged with the US side in working out this arrangement,” he said.
'Exiting is not an option'
The statement comes amid reports that India is weighing the option of withdrawing from the project in light of Trump’s renewed threats. The US had imposed sanctions on Iran in September last year but granted India a limited exemption from punitive measures for the Chabahar port project.
According to reports, discussions are underway to reach a "middle ground” that could address international concerns without compromising India’s national interests. However, details of the proposed arrangement have not been disclosed, with sources stressing that "exiting the port is not an alternative.”
According to Hindustan Times, several measures have been taken to reduce the exposure of state-run authorities and officials to potential US sanctions.
Why is the Chabahar port important?
The Chabahar port has been operated by India since 2003 to provide an alternative route for freight access to landlocked Afghanistan and Central Asia via road and rail links under the International North-South Transport Corridor, bypassing Pakistan. The project, however, had slowed earlier due to US sanctions on Iran linked to its suspected nuclear programme.
A long-term agreement was signed between Indian Ports Global Limited (IPGL) and Iran’s Ports and Maritime Organization. The agreement replaces the initial 2016 pact covering India’s role at the Shahid Beheshti terminal of Chabahar Port, which had been renewed annually.