As Prime Minister Narendra Modi is set to visit Washington, the Indian government on Monday backed the Chabahar Port project in Iran and stated that it has provided a much-needed alternative route to Afghanistan for its reconstruction and for creating better trade linkages with Central Asia, The Times of India reported citing MEA officials.
The development came after the Trump administration threatened to roll back the sanctions waiver that allowed New Delhi to develop the strategic port.
US President Donald Trump signed a memorandum on Tehran, calling upon the Secretary of State to modify or rectify sanctions that include any degree of economic or financial relief, including those related to Chabahar Port.
The statement came from a senior MEA official during the 46th anniversary of the Islamic Revolution of Iran.
MEA Secretary Jaideep Mazumdar said that regional connectivity has been an important pillar of India-Iran relations. “The development of the Chabahar Port in southeastern Iran reflects our joint vision for connectivity for mutual benefit.”
Mazumdar termed the port project a significant milestone in India-Iran ties.
The development comes as Prime Minister Narendra Modi is scheduled for a two-day visit to the United States from February 12 to 14, 2025, at the invitation of President Donald Trump. This is set to be the first meeting between the two leaders since President Trump’s second term commenced.
In 2018, recognising the strategic importance of Chabahar Port for facilitating Afghanistan’s reconstruction and reducing its dependence on Pakistan, the US granted a sanctions waiver to India for its development of the port. This exemption was intended to support Afghanistan’s economic development by providing an alternative trade route.
Following the US withdrawal from Afghanistan in 2021, the American perspective on Chabahar changed. In May 2024, after India and Iran signed a 10-year agreement to develop and operate the port, the US State Department stated that entities engaging in business with Iran should be aware of potential sanctions risks in relation to the agreement.
India has invested approximately $24 million in developing Chabahar Port. The revocation of the waiver jeopardises this investment and may disrupt India’s broader geostrategic plans.
In May 2015, India and Iran signed a Memorandum of Understanding (MoU) on India’s participation in developing the Chabahar Port, specifically the Shahid Beheshti Terminal.
The port also has a strategic location, as it is 170 kilometres west of Pakistan’s Gwadar Port.
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Ahead of Modi-Trump meet, India backs Chabahar project amid US pressure on Iran
