NewKerala.com

India Seeks US Sanctions Waiver Extension for Strategic Chabahar Port Project

India's Ministry of External Affairs confirmed it is engaged with the United States to ensure its strategic projects at Iran's Chabahar Port can continue under a time-bound US sanctions waiver. The conditional waiver, issued in October 2025, is valid until April 26, 2026. This diplomatic effort occurs amid a US threat of new tariffs on countries doing business with Iran, issued by former President Donald Trump. The port is a crucial part of India's plan to access Afghanistan and Central Asia, bypassing Pakistan.

Key Points: India Engages US on Chabahar Port Sanctions Waiver

  • US sanctions waiver for Chabahar expires April 2026
  • India-US talks to extend port project arrangement
  • Trump threatens 25% tariff on Iran business
  • Port is key to India's trade route to Afghanistan, Central Asia
3 min read

India engaging with US to ensure Chabahar projects continue under conditional sanctions waiver: MEA

India is in talks with the US to continue its Chabahar Port projects in Iran under a conditional sanctions waiver set to expire in April 2026.

"We remain engaged with the US side in working out this arrangement. - Randhir Jaiswal"

New Delhi, January 16

India on Friday stated that it is engaging with the United States to ensure that work linked to India's projects at Iran's Chabahar Port continues under a time-bound sanctions waiver from Washington, which is set to expire on April 26 this year.

Ministry of External Affairs spokesperson Randhir Jaiswal, in a weekly media briefing told reporters, "On the question of Chabahar, on 28 October, 2025, as you are aware, the US Department of Treasury had issued a letter outlining guidance, the guidance on the Conditional Sanctions Waiver, which is valid until 26 April, 2026. We remain engaged with the US side in working out this arrangement."

Alongside the status of the waiver, the Ministry of External Affairs (MEA) noted that it is closely monitoring developments related to the 25 per cent additional tariffs announced by the United States and underlined that India maintains a long-standing partnership with Iran.

Earlier on Monday (January 12), US President Donald Trump posted on Truth Social that any country doing business with Iran will face a 25 per cent tariff. The tariff will be applicable on "any and all business being done with the United States of America and is effective immediately," Trump wrote on the platform.

Iran is currently witnessing anti-government protests, and Trump has encouraged them, stating over the weekend that the US stands ready to help.

Against this backdrop, the MEA highlighted that India-Iran bilateral trade stands at USD 1.6 billion, with exports to Iran at USD 1.2 billion and imports at USD 0.4 billion.

Reiterating the basis for India's continued work at Chabahar, the ministry recalled that the US Department of the Treasury had issued guidance on October 28, 2025, on a conditional sanctions waiver for the port, which remains valid till April 26, 2026, and added that India continues to remain engaged with the US side in working out the arrangement.

India proposed developing the Chabahar Port in 2003 to provide an alternative route for Indian goods to reach landlocked Afghanistan and Central Asia via road and rail connectivity under the International North-South Transport Corridor, bypassing Pakistan. The progress on the project had slowed earlier due to US sanctions on Iran linked to its suspected nuclear programme.

To operationalise India's role at the port, a long-term agreement was signed between Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran. The agreement replaces the initial 2016 pact covering India's role at the Shahid Beheshti terminal in Chabahar Port, which had been extended annually.

In recent years, Chabahar has been utilised for key consignments, including the shipment of 20,000 tonnes of wheat assistance to Afghanistan in 2023. In 2021, the port was also used to send environmentally friendly pesticides to Iran.

- ANI

Share this article:

Reader Comments

P
Priya S
It's a delicate balancing act. On one hand, we have our strategic and economic interests in Chabahar, and on the other, we must manage relations with the US. The MEA seems to be handling it well so far. Hoping for a positive outcome before April.
A
Aman W
The 25% tariff threat from Trump is worrying for our broader trade. But Chabahar is too important to give up. It's not just about Iran; it's about access to Afghanistan and beyond, bypassing Pakistan. Our diplomats need to work overtime on this one.
S
Sarah B
While I understand the strategic importance, I hope our engagement also involves clear communication about our independent foreign policy. We should not appear to be constantly seeking permission. The project has clear humanitarian benefits, like the wheat to Afghanistan.
V
Vikram M
Good to see the long-term agreement is in place. The annual extensions were creating uncertainty. Now we need stability from the US side. This port is key for our 'Look West' policy and trade corridors. Jai Hind!
K
Karthik V
The bilateral trade numbers are quite low compared to potential. Chabahar can change that. Hope the government is also looking at insulating our economy from these external tariff shocks. We need more self-reliance in foreign policy matters.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50