India seeks 'sustainable way forward' for Chabahar amid US sanctions
Foreign Secretary Vikram Misri said India is looking for a "sustainable way forward" to continue its involvement in Iran's Chabahar port, as New Delhi weighs options to protect its stake in the strategic project amid intensified US sanctions on Tehran.
Speaking in Bishkek, Misri acknowledged that the conflict in West Asia had affected regional cooperation and the "regime" under which activities at Chabahar could be carried out. "We remain in discussion and in touch with various stakeholders in order to find a sustainable way forward to continue this element of cooperation," he said, adding that Chabahar "has a role in this region that would be beneficial to many stakeholders."
Misri's remarks come after the expiry of a US sanctions waiver that had covered India's activities at the port. The waiver expired on April 26, 2026, according to reports. India has since been discussing the implications with both Washington and Tehran.
The pressure from Washington has been increasing. US Treasury Secretary Scott Bessent said on Sunday that the US is likely to impose new secondary sanctions every week, initially targeting banks involved in Iranian financial activity. Bessent warned that institutions dealing with Iran could face exclusion from the dollar-based financial system.
India's long-standing involvement
India has been associated with Chabahar for more than two decades, first entering talks with Iran to develop the port in 2003. During Prime Minister Narendra Modi's visit to Iran in 2016, India committed investment to the project. In May 2024, India and Iran signed a 10-year contract for India Ports Global Ltd to equip and operate the Shahid Beheshti terminal at Chabahar. India has fulfilled its $120 million financial commitment towards port equipment.
The port, located in southeastern Iran on the Gulf of Oman, is strategically important for India as it provides access to Afghanistan and Central Asia without transiting through Pakistan. It also forms part of the International North-South Transport Corridor, a multimodal trade network connecting India with Iran, Central Asia, Russia, and Europe. Chabahar is situated close to Pakistan's China-backed Gwadar port, about 170 kilometers away, which is part of the China-Pakistan Economic Corridor.
Options under consideration
According to a Bloomberg report, India is discussing options separately with the US and Iran over its $120 million investment in the port. One option being considered is temporarily transferring India's stake to an Iranian entity during the sanctions period. Such an arrangement could allow New Delhi to step back from direct operations for now while keeping open the possibility of returning if sanctions are eased. The report also indicated that India does not plan to completely exit Chabahar.
Misri's emphasis on finding a way to "continue" cooperation is significant, suggesting India is looking to preserve its involvement even if the present arrangement has to change. The US has recently broadened its sanctions campaign against Iran as part of Operation Economic Outcast, aimed at pressuring Iran into a deal on the West Asia war.