India looks for 'sustainable way' to stay in Chabahar amid US sanctions

The statement is significant as it comes amid uncertainty over India's future at Chabahar following the expiry of a US sanctions waiver. It also comes amid reports that New Delhi is considering temporarily transferring its stake in the project to an Iranian entity to reduce its exposure to US sanctions.

In Short

• Chabahar offers India access to Afghanistan and Central Asia bypassing Pakistan
• India Ports Global signed a 10-year Shahid Beheshti terminal operations pact
• Cargo handled at the port has risen 82% since 2020-21

India is looking for a “sustainable way forward” to continue its involvement in Iran's Chabahar port amid US sanctions, Foreign Secretary Vikram Misri said, as New Delhi weighs options to protect its stake in the strategic project.

“We have been associated with this project over a long period of time,” Misri said in Bishkek, noting 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.

Misri's remarks come after the expiry of a US sanctions waiver and amid reports that India could temporarily transfer its stake in the project to an Iranian entity to reduce its exposure to US penalties.

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 is to temporarily transfer India's stake to an Iranian entity during the sanctions period.

India, however, does not plan to completely exit Chabahar, the report said. 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.

Misri's emphasis on finding a way to “continue” cooperation is therefore important. It indicates that India is looking at ways to preserve its involvement in Chabahar even if the present arrangement has to change.

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, and in 2024, India Ports Global Limited signed a 10-year agreement to operate the Shahid Beheshti terminal.

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 while bypassing Pakistan, which does not allow India land transit through its territory.

Chabahar is also linked to the International North-South Transport Corridor, the multimodal trade network connecting India with Iran, Central Asia, Russia and Europe.

The port has also given India a presence close to Pakistan's China-backed Gwadar port, located around 170 km away and forming a key part of the China-Pakistan Economic Corridor.

India's investment had begun to see higher cargo movement as well. Government figures show cargo handled at Chabahar increased from 12.24 lakh tonnes in 2020-21 to 22.32 lakh tonnes in 2024-25, a rise of more than 82 per cent.

Walking away would therefore mean giving up a project India has spent more than two decades developing and a route central to its access to Afghanistan and Central Asia.

For now, Misri's remarks make clear that while the sanctions have forced India to reconsider how it remains at Chabahar, New Delhi is still looking for a way to keep the cooperation going.

- Ends