India continues to monitor its involvement in the Chabahar port project in Iran as the country navigates evolving US sanctions and ongoing unrest in Iran. The Trump administration had threatened a 25% tariff on countries doing business with Iran, raising concerns for India’s role in developing the strategically located Chabahar port on Iran’s southern coast in Sistan-Balochistan.
Although the US had revoked its earlier waiver on the project, it granted India a six-month exemption, valid until April 26, 2026. The External Affairs Ministry (MEA) confirmed that India is actively engaging with the US to clarify the conditions and continue its involvement in a safe manner.
India’s steps to protect its interests
MEA spokesperson Randhir Jaiswal stated that India is considering multiple options, including transferring its committed $120 million to reduce direct exposure to the project. Another possibility under discussion is forming a new entity to continue Chabahar’s development while minimizing risk to the Indian government.
India remains committed to the project due to its strategic importance and potential role in the International North-South Transport Corridor (INSTC) a 7,200-km transport network connecting India, Iran, Afghanistan, Russia, Central Asia, and Europe.
India’s two-way trade with Iran totaled $1.6 billion last year, with $1.2 billion in exports and $0.4 billion in imports. Despite rising US-Iran tensions, government sources said the new tariff is expected to have a minimal impact on India’s trade.
Safety of Indian citizens in Iran
The MEA has been closely monitoring the situation in Iran, where anti-government protests have claimed over 2,500 lives.
Currently, about 9,000 Indians, mostly students, reside in Iran. India has advised its nationals not to travel to Iran and has urged residents to leave the country by available means. Jaiswal emphasized that the Indian embassy in Tehran is in constant contact with citizens to ensure their safety.
The unrest in Iran began following a plunge in the Iranian currency, evolving from economic grievances to calls for political change. US President Donald Trump has warned of military action if the Iranian government continues its crackdown on protesters.
