NEW DELHI: India is considering various options on its engagement in the development of the strategically located Chabahar port in Iran against the backdrop of the Trump administration threatening a 25 per cent additional tariff on countries doing business with Tehran.
India is a major partner in development of the Chabahar port, located in the Sistan-Balochistan province Iran’s southern coast.
In September last year, the US imposed crippling economic sanctions on Iran but had granted India a six-month exemption from the punitive measures on the Chabahar port project. The waiver will come to an end on April 26.
External Affairs Ministry spokesperson Randhir Jaiswal on Friday said India is engaged with the US on the issue.
“As you are aware, on October 28, the US Department of Treasury had issued a letter outlining the guidance on the conditional sanctions waiver valid till April 26, 2026. We remain engaged with the US side in working out this arrangement,” Jaiswal said while responding to a query during his weekly media briefing.
Jaiswal also mentioned India’s long-standing relations with Iran and said New Delhi is closely following the evolving situation in the country. Iran has been witnessing massive anti-government protests and crackdown in which over 2,500 people have lost their lives.
Simultaneously, New Delhi is vigilantly monitoring the rapidly changing situation in Iran, ready to take all necessary measures to ensure the safety and well-being of Indian nationals in the region. This statement comes amid growing concerns that domestic unrest in Iran, coupled with new US tariff measures, could jeopardise India’s longstanding investment in the strategically vital Chabahar Port.
India’s nearly $500 million commitment faces new uncertainties as instability threatens to delay project execution and invites external competitors, such as China, to fill the vacuum. These developments are prompting Indian policymakers to reconsider the balance between immediate economic risks and the port’s long-term strategic significance.
For India, Chabahar’s importance extends well beyond Iran’s borders. It is the country’s only viable overland route to Afghanistan and resource-rich Central Asian markets. With Pakistan continuing to block transit access and China rapidly expanding its influence in West Asia, the port has become a critical component of India’s regional connectivity strategy.
Located on Iran’s southeastern coast along the Gulf of Oman, Chabahar Port is vital to India’s westward outreach. It allows Indian goods to bypass Pakistan, reaching Afghanistan and Central Asia via a network of road and rail links. Over the years, India has invested heavily in port infrastructure, logistics, and credit lines to bolster this vital connection.
The legal basis for India’s role is grounded in a bilateral agreement signed with Iran in 2015, granting India the right to develop and operate two berths at Chabahar for ten years. These operations are managed by India Ports Global Limited, a joint venture between Jawaharlal Nehru Port Trust and Kandla Port Trust, in partnership with Iran’s Aria Banader.
As regional volatility and global geopolitical tensions grow, the future of Chabahar remains a crucial test of India’s ability to protect its strategic interests while navigating an increasingly complex international sanctions landscape.
Jaiswal said the volume of two-way trade between India and Iran was $1.6 billion last year. Out of the total, India’s exports was to the tune of $1.2 billion and import was of $0.4 billion. Iran accounts for roughly 0.15 per cent of India’s overall global trade.
The Chabahar port is being developed by India and Iran to boost connectivity and trade ties. Both the countries are also strongly pitching for making Chabahar port an integral part of the International North-South Transport Corridor (INSTC).
The INSTC is a 7,200-km-long multi-mode transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.
Jaiswal also said that the Indian embassy in Tehran is in touch with the Indians in Iran.
“We are keeping a close watch on the situation there, and as far as our citizens are concerned, we are committed to doing whatever is necessary for their well-being,” he said.
“Approximately 9,000 of our citizens are currently residing in Iran. The majority of them are students,” he said.
India has already issued a number of advisories to the Indian nationals in view of the current situation in that country.
“In these advisories, we have advised our citizens in India not to travel to Iran at this time, and we have advised Indian citizens residing in Iran to leave the country by whatever means are available,” he said.
India on Wednesday asked all its nationals currently residing in Iran to leave by available means after the security situation deteriorated further.
New Delhi also strongly advised its nationals to avoid travelling to Iran.