India likely to maintain Chabahar presence even as US sanctions loom

Subscribe to enjoy similar stories. New Delhi: India is working on a playbook to operate the Chabahar port in Iran after the US waiver on sanctions against Tehran ends in March, said two people aware of New Delhi’s stance to balance its ties with its longtime Persian Gulf trade partner and the world’s largest economy. As the geopolitical situation eases and if sanctions on infrastructure are lifted, India would look at ways to remain engaged and operate the terminal given its strategic significance, said the first person quoted earlier, speaking on the condition of anonymity.

India’s infrastructure at the Iranian port did not face restrictions even when Iran was under the US sanctions earlier. However, apart from the $120 million invested in the Shahid Beheshti terminal, India will make no further investment until the geopolitical flare-up eases, the person said. India has committed an additional $250 million credit line to Iran to develop infrastructure.

The Iranian port is close to the China-operated Gwadar Port in Pakistan. Chabahar is important for India as it provides direct access to Afghanistan and Central Asia, bypassing Pakistan, besides countering Chinese and Pakistani influence in the region. In May 2024, India and Iran signed a 10-year long-term main contract, under which state-run Indian Ports Global Ltd (IPGL) was required to operate five berths, invest, and extend credit lines.

"India doesn't plan to completely exit Chabahar. The investment commitment has been completed. Although further investment is unlikely in the near term.