'Examining implications': India on US move to revoke Chabahar port waiver

The revocation of the sanctions waiver comes as a challenge for India, as it is involved in the development of a terminal at Chabahar Port

India on Friday said it is currently examining the implications of the United States (US) revoking the sanctions waiver for Iran’s Chabahar port.

 

In a press briefing, the Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said, "We have seen the US press statement regarding revocation of sanctions waiver for Chabahar Port. We are presently examining its implications for India."

 

This comes two days after the US Department of State announced the lifting of the sanctions exemption granted for Chabahar Port in 2018.

 

"Consistent with President Trump’s maximum pressure policy to isolate the Iranian regime, the Secretary of State has revoked the sanctions exception issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) for Afghanistan reconstruction assistance and economic development, effective September 29, 2025," the State Department said in a press note.

 

 

It added that after the revocation comes into effect, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA. 

 

India's stake

 

This puts India in a tough spot as it is involved in developing a terminal at Chabahar Port on the Gulf of Oman. On May 13, 2024, New Delhi signed a 10-year contract to operate the port, aimed at expanding trade with Central Asia. 

 

The project, first proposed in 2003, seeks to connect Indian goods to landlocked Afghanistan and Central Asia via the International North-South Transport Corridor, bypassing Pakistan.

 

On Pak-Saudi defence deal

The MEA spokesperson also commented on the recently executed defence pact between Saudi Arabia and Pakistan, which states that an attack on one will be considered an attack on both.

 

"India and Saudi Arabia have a wide-ranging strategic partnership that has deepened considerably in the last few years. We expect that this strategic partnership will keep in mind mutual interests and sensitivities," Jaiswal said.

 

The defence agreement between Pakistan and Saudi Arabia may influence India’s defence policy and its growing defence relationship with Riyadh. 

On trade deal with US

Jasiwal also briefed on the India-US trade deal, saying that the latest talks between US Trade Representative (USTR) Assistant Brendan Lynch and the Ministry of Commerce were "positive and forward-looking."

 

"The discussions were positive and forward-looking, covering various aspects of the trade deal. It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement," Jaiswal said.

 

India and the US conducted five rounds of trade talks until July 2025. The sixth round of talks was scheduled to take place in New Delhi on August 25, but was eventually called off after the additional tariffs were announced. The talks had hit a roadblock over allowing US dairy and agri products - including genetically-modified (GM) crops - into India.

 

However, according to a recent report by Business Standard, Washington has softened its stance on the contentious sectors, stating that it is mainly interested in exporting premium cheese to India and has little intention of competing in the mass-market milk segment, which remains highly sensitive for New Delhi. 

On Nepal

Speaking about the recently formed interim government in Nepal, led by Sushila Karki, the MEA spokesperson said India welcomes the new government and will provide support to restore peace and stability in the Himalayan nation.

 

"Prime Minister Narendra Modi had a warm conversation with PM Karki yesterday and reaffirmed India’s steadfast support for her efforts to restore peace and stability. As a close neighbour, a fellow democracy and a long-term development partner, India will continue to work closely with Nepal for the well-being and prosperity of our two peoples and countries," Jaiswal said.

 

Nepal was recently rocked by violent protests that led to the resignation of former PM K P Sharma Oli. The Gen Z-led agitation involved arson at politicians’ homes, Parliament, offices, and businesses. Days later, the protesters selected Karki as interim leader, who took over the post on September 12.