Iran Reaffirms Support For Chabahar Port, Ties With India

Iran has reiterated its strong backing for the Chabahar port project and expressed readiness to deepen cooperation with India, even as uncertainty surrounds the initiative due to renewed United States sanctions pressure. The statement comes amid concerns over the future of India’s strategic presence at the port following the revocation of a key sanctions waiver by Washington.

Strategic importance of Chabahar port

The Chabahar Port is considered critical for India’s connectivity to Afghanistan and Central Asia, bypassing Pakistan. Despite geopolitical headwinds, Iran has stressed that the port’s strategic location remains unchanged and its relevance intact. Iranian officials view Chabahar as a long-term asset for regional trade and transit.

Impact of US sanctions and waiver uncertainty

The project has faced renewed challenges after the United States revoked a sanctions waiver last year that had allowed India to develop a terminal at Chabahar. Although the waiver was later extended till April 26 following discussions with India, prospects of a further extension remain uncertain. Reflecting this ambiguity, the Union Budget for the current year made no fresh allocation for the port.

India’s financial commitments remain unchanged

The Indian government has clarified that it has already transferred the entire committed amount of $120 million to Iran for the port’s development. India has also not withdrawn from its commitment to extend a $250 million line of credit for further expansion under a 10-year contract signed in 2024. Officials have maintained that this credit line is not time-bound, signalling continued strategic intent.

Important Facts for Exams

• Chabahar port provides India access to Afghanistan and Central Asia bypassing Pakistan.
• The project operates under a long-term bilateral agreement signed in 2024.
• US sanctions on Iran directly affect third-country investments.
• Chabahar is located in Iran’s Sistan-Baluchestan province.

Iran signals readiness to expand bilateral ties

Iran’s ambassador to India, Mohammad Fathali, said the port was vital and capable of playing a significant regional role. He underlined Iran’s intent to boost and expand relations with India, citing the long civilisational ties between the two countries and expressing confidence that New Delhi would manage the evolving geopolitical situation while staying engaged with the project.