India’s Role at Chabahar Port
India’s role at Chabahar Port in Iran has gained renewed global attention as the US sanctions waiver protecting India’s operations ended in September 2025. This move threatens India’s $120 million investment and raises the risk of secondary sanctions. Chabahar remains a key strategic asset for India’s connectivity to Central Asia and Afghanistan, bypassing Pakistan. The port’s development reflects broader geopolitical competition in South Asia, especially with China’s Gwadar Port nearby.
Geopolitical Importance of Chabahar Port
Chabahar is Iran’s only oceanic port and a vital link for India to access Afghanistan and Central Asia. It provides an alternative trade route bypassing Pakistan, which blocks Indian access through its territory. The port is part of the International North-South Transport Corridor (INSTC), connecting Mumbai with Russia via Iran and Azerbaijan. Its proximity to Gwadar Port, controlled by China and Pakistan, makes it a strategic counterbalance in the Indian Ocean region.
Impact of US Sanctions Waiver Revocation
The US waiver under the Iran Freedom and Counter-Proliferation Act (IFCA), granted in 2018, allowed India to operate the Shahid Beheshti Terminal without sanctions. Its revocation in 2025 exposes India Ports Global Limited (IPGL) to possible secondary sanctions. This creates uncertainty about India’s future involvement and investment security at Chabahar. The move complicates India’s efforts to deepen ties with Iran amidst broader geopolitical tensions.
Current Infrastructure and Operations
Chabahar Port features a -16-metre draft, accommodating vessels up to 120,000 deadweight tonnage (DWT). It handles various ships, including container vessels and passenger ferries. India operates part of the port through the Shahid Beheshti Terminal, with cargo-handling equipment and cranes. The port is functional but modest, reflecting ongoing development efforts amid a sparse surrounding region with limited urban infrastructure.
Chabahar Free Zone and Economic Vision
Adjacent to the port is the Chabahar Free Zone, intended as a trade and logistics hub. Currently, it lacks housing, schools, hospitals, and hotels. Authorities aim to attract Indian investors and companies to build infrastructure and industries. Plans include cultural initiatives such as a cricket stadium in collaboration with India’s Board of Control for Cricket in India (BCCI), symbolising deeper bilateral ties and regional integration.
Strategic Challenges and Regional Dynamics
Chabahar’s future depends on managing geopolitical pressures from the US, China, and regional actors. The nearby Gwadar Port, part of China’s Belt and Road Initiative and Pakistan’s economic corridor, intensifies competition. India’s ability to sustain its presence amid US sanctions and shifting alliances will shape the port’s role in regional connectivity and economic diplomacy. The port remains a focal point of India-Iran cooperation and broader strategic calculations.
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