The "recent development" has cast a shadow on the future of Chabahar Port, a vital and strategic port for India, a parliamentary panel on external affairs has said, and welcomed that the Centre "remains engaged" with all concerned parties in order to address the implications of these developments. The 'Twelfth Report of the Committee on External Affairs (2025-26) on Demands for Grants (2026-27)' of the Ministry of External Affairs (MEA), was presented in Parliament on Tuesday. The Committee of External Affairs is headed by Congress MP Shashi Tharoor. The observation by the panel, assumes significance as it comes amid the ongoing West Asia conflict and in the backdrop of the recent changes in US sanctions or tariff policies on India's participation in the Chabahar project. "The Committee find that for the development of Chabahar Port, an amount of Rs 100 crore was allocated at BE (budget estimate) 2025-26, which was increased to Rs 400 crore at RE (revised estimate). The allocated .
West Asia conflict: US fighter jets targeted military sites in the Koh Laki area behind Iran's Chabahar Free Zone, with loud explosions heard across the region after the strike
The US pressure has cast a shadow on India's strategic bet on the Chabahar Port
In a departure from the past, India has not allocated any funds for the Chabahar port project in its Union Budget, a move that came against the backdrop of Washington's fresh sanctions on Iran. In the last few years, India has been making an annual outlay of Rs 100 crore to the mega connectivity project in the Sistan-Balochistan province in Iran's southern coast. India is a major partner in development of the Chabahar port. In September last year, the US imposed crippling economic sanctions on Iran but had granted India a six-month exemption from the punitive measures on the Chabahar port project. The waiver will come to an end on April 26. Last month, External Affairs Ministry spokesperson Randhir Jaiswal said New India is engaged with the US on the issue related to the Chabahar port project. It is learnt that India was mulling various options relating to the project after Trump administration threatened a 25 per cent additional tariff on countries doing business with Tehran. T
Given the rapid developments in US-Iran tensions and India's own strategic interests in the port, experts believe India will have to walk a tightrope on the issue for the foreseeable future
Last month, the US revoked the 2018 sanctions waiver for Iran's Chabahar Port, saying the move aligns with President Trump's 'maximum pressure policy' to isolate Tehran
The reopening of Indian embassy in Kabul comes four years after New Delhi withdrew its officials following the Taliban takeover in August 2021
Officials say legal consultations on, solution will be worked out
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
The decision of the US government to revoke the 2018 sanctions waiver with regard to strategic Iranian port of Chabahar will have implications for India, which is engaged in the development of a terminal at the port. The US Department of State in a statement said that in consistent with President Trump's maximum pressure policy to isolate the Iranian regime, it 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. "Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA," the statement said. India will be impacted by this decision, as it is involved in development of a terminal at the Chabahar port on the Gulf of Oman. On May 13, 2024, India signed a 10-year contract to operate the port that will help it expand trade with
India, Iran and Armenia held trilateral consultations in Tehran on boosting trade and regional connectivity, with INSTC and Chabahar port high on the agenda alongside bilateral talks
National Security Advisor Ajit Doval on Sunday held a phone conversation with his Iranian counterpart Ali Akbar Ahmadian with a focus on regional situation and the Chabahar port project. An Iranian readout said Doval talked about Iran's "constructive role" in the region and expressed India's interest in further expanding cooperation in the development of Chabahar port and the International North-South Transport Corridor (INSTC). It is understood that the recent military confrontation between India and Pakistan also figured in the talks. "During the call, Doval emphasised Iran's constructive role in the region and expressed India's interest in expanding bilateral cooperation -- particularly in the development of Chabahar Port and the International North-South Transport Corridor," the readout said. He also thanked Iran for its continued assistance and support, it noted. "Ahmadian affirmed that Iran and India, as two ancient civilizations, share deep-rooted ties and vast potential fo
The signed Chabahar agreement includes a clause on cargo targets, but no penalties will be imposed if such traffic is not achieved
Trump's Chabahar sanctions review may impact India-Iran trade, regional connectivity, and New Delhi's strategic interests in Central Asia
In a significant move, an Indian delegation met Afghanistan's acting Defence Minister Mullah Mohammad Yaqoob and offered the use of Chabahar Port in Iran to businesses in his country, and also discussed extending humanitarian assistance to Kabul. The delegation was led by J P Singh, the Joint Secretary of the Pakistan-Afghanistan-Iran division in the External Affairs Ministry. During a weekly media briefing here, External Affairs Ministry spokesman Randhir Jaiswal said that apart from Mohammad Yaqoob, the delegation also met with former President Hamid Karzai and other senior ministers, along with the heads of UN agencies. "They had discussions on India's humanitarian assistance, also how the Chabahar Port can be utilised by the business community in Afghanistan for transactions and for export and import and any other thing that they would like to do," Jaiswal said in response to a question. India does not recognise the Taliban regime that has been ruling Afghanistan since 2021. I
Prime Minister Narendra Modi and Iran's President Dr Masoud Pezeshkian discussed regional connectivity and West Asia conflict. PM Modi also extended a formal invitation to Pezeshkian to visit India
This will be the third international port operations by India after Chabahar in Iran and Sittwe in Myanmar and will be managed by IPGL
Iran has fewer maritime trade partners compared to India
The 7,200 km INSTC project was conceived in 2002 to reduce the time and cost of moving cargo from India to Russia via Iran. More countries have now joined but the progress is very slow
Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal says the India-Iran long-term agreement for operating the Chabahar port could become a template for future port pacts