Iran Protests Spark Concerns In India Over Chabahar Operations; Intelligence Flags Strategic Risks

India’s long-term strategic investment in Iran’s Chabahar Port is facing fresh uncertainty amid widespread protests and instability across Iran, top intelligence sources have told CNN-News18. The unrest, now reported in over 100 Iranian cities, has raised serious concerns in New Delhi over the security and continuity of operations at the strategically critical port.

According to intelligence inputs, nationwide strikes, internet blackouts and growing supply-chain disruptions triggered by the protests could delay cargo handling and infrastructure development at Chabahar. India has invested nearly $500 million in the port, viewing it as a vital geopolitical and economic gateway that allows New Delhi to bypass Pakistan and access Afghanistan, Central

Asia, Russia and Europe.

Top intelligence sources say Chabahar is central to India’s continental access strategy and its Connect Central Asia Policy, aimed at boosting trade with landlocked nations such as Uzbekistan, Kazakhstan and Turkmenistan. The port is also a critical node in the International North-South Transport Corridor (INSTC) — a 7,200-km multimodal ship-rail-road network linking India to Iran, the Caspian Sea, Russia and onward to Europe.

The INSTC, intelligence sources note, reduces transit time by nearly 40 per cent and costs by 30 per cent compared to the traditional Suez Canal route, cutting shipping durations from 25–30 days. Any prolonged instability in Iran, however, threatens to derail this advantage.

Of particular concern is the Chabahar–Zahedan railway project, a key component of INSTC integration. Intelligence sources warn that labour unrest, funding disruptions or prolonged protests could delay rail connectivity, undermining the corridor’s efficiency. Sources further indicate that even lower-rank cadres of Iran’s Islamic Revolutionary Guard Corps (IRGC) are reportedly affected by the country’s economic crisis, potentially impacting labour morale and security conditions.

Strategically, New Delhi is also wary that any vacuum created by instability in Iran could allow China to expand its influence, as Beijing has historically moved quickly to fill gaps during periods of uncertainty. Chabahar serves as a counterweight to China’s growing footprint at Gwadar Port in Pakistan, located just 170 km away and a key pillar of Beijing’s Belt and Road Initiative (BRI).

Beyond trade, intelligence sources stress that Chabahar helps India monitor Chinese naval and commercial activity in the Arabian Sea and the Indian Ocean, limiting Beijing’s “string of pearls” encirclement strategy. With China eyeing a massive scale-up of Gwadar to 400 million tonnes by 2030, any disruption to Chabahar could have far-reaching strategic consequences for India.

Top intelligence officials say New Delhi is closely monitoring the situation, as regime instability in Iran now poses a direct challenge to one of India’s most critical overseas strategic investments.