US grants six-month sanctions waiver for India on Chabahar Port

Digital Desk

The United States has granted India a six-month waiver from sanctions related to Iran’s Chabahar Port, allowing continued operations under the bilateral agreement between New Delhi and Tehran. Ministry of External Affairs spokesperson Randhir Jaiswal announced the development during a weekly press briefing.

Washington had warned that sanctions would apply to entities involved in operating, funding, or supporting activities at the port starting September 29. The deadline was first extended to October 27 and has now been pushed forward by another six months.

Under the 10-year agreement signed in 2024, India has leased the Chabahar Port, committing an investment of $120 million and offering a $250 million line of credit.

Chabahar serves as a vital maritime gateway, enabling India to trade directly with Afghanistan, Central Asia, Russia, and Europe—bypassing Pakistan entirely.

Four key advantages of the Chabahar Port waiver for India

1. Direct access to Central Asia without Pakistan
The port allows India to ship goods to Afghanistan and Central Asian nations without relying on transit through Pakistan, cutting down both time and cost for Indian exporters.

2. Boost to trade and logistics
Chabahar enables smoother transportation of goods, medicines, food, and industrial products to regional markets. This not only enhances India’s export capacity but also lowers logistics expenses. The waiver also simplifies future cooperation with Iran on oil imports and trade hub development.

3. Security for India’s investment
India’s substantial investments in the Chabahar project are safeguarded under the US exemption, allowing development work to progress uninterrupted.

4. Strategic counterbalance to China and Pakistan
Located near Pakistan’s Gwadar Port—where China has a major presence—Chabahar strengthens India’s strategic position in the region and provides a geopolitical counter to the China-Pakistan partnership.

Chabahar’s role in connecting India and Afghanistan

Before Chabahar, India faced logistical challenges sending aid and goods to Afghanistan due to strained ties and border issues with Pakistan. Now, India uses Chabahar to deliver wheat and essential supplies to Afghanistan and to import energy from Central Asia.

India and Iran first signed an agreement to develop the port in 2018, and the US had granted India specific exemptions from sanctions recognizing Chabahar’s humanitarian and regional connectivity role.

India’s long-term engagement with Chabahar

Talks on the port began as early as 2003 under the Atal Bihari Vajpayee government but were delayed by US-Iran tensions. In 2013, the Manmohan Singh government pledged ₹8 billion for the project.

In 2016, Prime Minister Narendra Modi signed a trilateral pact with Iran and Afghanistan, committing ₹7 billion for a terminal and ₹1,250 billion for further development.

By 2024, Foreign Secretary Vinay Kwatra had advanced discussions on connectivity with Iran’s Foreign Minister. As per India Ports Global Limited (IPGL), the port’s capacity is projected to reach 82 million tonnes once fully developed.