With the US-Iran conflict intensifying, India has begun urgent discussions with the Donald Trump administration to secure an extension of the sanctions
waiver for the strategically important Chabahar Port in Iran. India had received a six-month exemption from US sanctions on the port in October 2025. That waiver is now set to expire at the end of April, putting India’s investment and operations at the port under serious risk. According to sources, New Delhi is simultaneously engaging with both Washington and Tehran to protect its interests. While talks are on with the US for extending the sanctions waiver, India is also negotiating with Iran to create a structure where a local Iranian entity operates the port temporarily. This arrangement would include a legal safeguard that hands back full operational control to India once sanctions are lifted. Late on Sunday night, External Affairs Minister held a detailed conversation with his Iranian counterpart, during which they discussed the regional situation, including maritime traffic through the Strait of Hormuz. Why Chabahar Port Matters So Much to India Chabahar Port is extremely important for India because it provides a direct route to Afghanistan and Central Asia, completely bypassing Pakistan. It forms a key part of the International North-South Transport Corridor (INSTC) and helps India counter China’s influence through Pakistan’s Gwadar Port.India Ports Global Ltd (IPGL) has been operating the port since 2024 under a 10-year agreement signed with Iran. Under this deal, India has committed to invest around $120 million directly and another $250 million through debt financing for port development and connectivity. A parliamentary committee recently expressed concern over the uncertainty surrounding the port due to the current geopolitical situation. The government has been actively engaging with all stakeholders to find a workable solution.For India, keeping a strong foothold in Chabahar is not just about trade — it is a critical strategic asset in the region, located just 550 nautical miles from Kandla port in Gujarat.With the war in the Middle East showing no signs of ending soon, the coming weeks will be crucial for India as it tries to secure its long-term interests in Chabahar Port.
