India has made it clear that exiting Iran’s strategically located Chabahar port is “not an option”, underlining the project’s critical importance to New Delhi’s long-term geopolitical and economic objectives. The statement comes amid reports suggesting India could come under pressure from the United States to scale back its involvement due to renewed sanctions on Iran and a proposed 25 per cent tariff on countries doing business with Tehran.

Responding to the speculation, the Ministry of External Affairs said India is in continuous engagement with the US to operationalise a short-term sanctions waiver that allows work at Chabahar to continue. Foreign Ministry spokesperson Randhir Jaiswal noted that the US Treasury had issued guidance in October 2025 for a conditional waiver valid until April 26, 2026, and discussions are ongoing to work out the modalities within that framework.

Chabahar’s significance for India lies in its unique strategic location. With Pakistan blocking overland access to Afghanistan and Central Asia, the Iranian port remains India’s only viable western corridor to these regions. Situated beyond the Strait of Hormuz, Chabahar offers India direct maritime access to Afghanistan, Central Asia, and eventually Europe, while remaining relatively insulated from regional conflicts in West Asia.

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The port is also a key pillar of the proposed International North-South Transport Corridor (INSTC), a 7,200-kilometre multimodal network linking the Indian Ocean and Persian Gulf to the Caspian Sea and northern Europe. Once fully operational, the corridor is expected to reduce freight transit time by up to 15 days compared to the traditional Suez Canal route, significantly lowering logistics costs for Indian trade.

Highlighting its long-term commitment, India signed a 10-year agreement with Iran in 2024 under which state-run India Ports Global Ltd committed investments worth $370 million for the development and operation of Chabahar. The port has also played a crucial humanitarian role, serving as a key hub for India’s assistance to Afghanistan during periods of instability.

As India targets economic growth of $10 trillion by 2030 and $15 trillion by 2034, officials view stable and diversified trade routes as essential. For New Delhi, Chabahar is far more than a commercial project—it is a cornerstone of India’s connectivity strategy and a strategic counterbalance in an increasingly complex global sanctions and security environment.

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