Context: The United States has granted India a six-month sanctions waiver for the operation and development of Iran’s Chabahar Port, effective October 29, 2025.
This move allows India to continue strategic work at the port without facing penalties under U.S. sanctions laws.
Background: U.S. Sanctions on Iran
The sanctions originate from the Iran Freedom and Counter-Proliferation Act (IFCA), Section 1244, targeting entities engaged in Iran’s energy, shipping, shipbuilding, and port sectors.
Violations could result in asset freezes, exclusion from the U.S. financial system, and business restrictions.
The U.S. employs these sanctions to maintain “maximum economic pressure” on Iran—aiming to halt nuclear proliferation, curb Tehran’s support to regional militias, and push for a stricter nuclear accord.
In 2018, the U.S. granted India a waiver recognizing Chabahar’s role in Afghanistan’s post-war reconstruction and as a humanitarian trade hub. However, following the Taliban takeover in 2021 and shifting geopolitical priorities, the exemption was revoked in September 2025—until this recent six-month reinstatement.
Chabahar Port: India’s Strategic Gateway
Located in Iran’s Sistan-Balochistan province, Chabahar sits on the Gulf of Oman, only 170 km west of Pakistan’s Gwadar Port (operated by China under CPEC).
It is Iran’s only oceanic port and provides India direct access to Afghanistan, Central Asia, and Europe, bypassing Pakistan.
Key Terminals:
- Shahid Kalantari Terminal:
Developed in the 1980s for conventional cargo operations, reducing Iran’s dependence on the congested Strait of Hormuz. - Shahid Beheshti Terminal:
Operated by India Ports Global Limited (IPGL), it forms the backbone of India’s connectivity projects—enabling cargo movement to Afghanistan and Central Asia via the International North-South Transport Corridor (INSTC).
Strategic Importance for India
- Connectivity & Trade: Strengthens India’s trade links to Eurasia, offering a secure supply chain alternative amidst global disruptions.
- Regional Balancing: Counters China’s Gwadar influence and enhances India’s maritime and logistical presence in the region.
- Energy & Security: Serves as a logistical node for energy imports and humanitarian outreach to landlocked neighbors.
- Geopolitical Significance: Reflects India’s ability to maintain strategic autonomy while managing ties with both Washington and Tehran.
Conclusion
The temporary U.S. waiver reaffirms Chabahar’s role as a strategic lifeline for India’s regional outreach. While the exemption offers short-term relief, long-term success will depend on sustained diplomatic engagement with both the U.S. and Iran, ensuring the port’s full integration into India’s connectivity vision under INSTC and Viksit Bharat 2047.