India is seeking renewed US sanctions exemptions to continue operating Iran’s Chabahar Port, a project New Delhi considers strategically important for maintaining trade with Afghanistan and expanding connectivity to Central Asia.
Indian officials said the government is pursuing diplomatic efforts to restore the waiver after the latest US exemption expired in April 2026, leaving uncertainty over India’s continued role in the port.
Although Chabahar falls under US sanctions on Iran, Washington granted the project a special waiver in 2018, citing its role in supporting Afghanistan’s economy, facilitating humanitarian trade and providing the landlocked country with an alternative route to international markets that bypasses Pakistan.
Kirti Vardhan Singh, India’s Minister of State for External Affairs, told Parliament that Chabahar remains central to India’s regional connectivity strategy and its efforts to strengthen commercial links with Afghanistan and Central Asia.
India has managed part of the port through a state-owned company since 2018. In May 2024, New Delhi signed a 10-year agreement with Iran’s Ports and Maritime Organization to develop and operate the facility.
Under the agreement, India committed $120 million to the project. The government said the full amount has been transferred, with the final payment completed in August 2025.
The United States ended the Chabahar sanctions waiver in 2025 as part of its renewed “maximum pressure” campaign against Iran, prompting India to seek temporary exemptions while continuing discussions with Washington over the project’s future.
For India, Chabahar provides direct access to Afghanistan and Central Asia without relying on Pakistani transit routes. For Afghanistan, the port has become an important gateway for imports and exports, particularly during periods of border closures and trade disruptions with Pakistan.
The waiver request also comes as regional trade patterns continue to evolve. The World Bank recently reported that repeated disruptions along Pakistan’s trade corridors have accelerated Afghanistan’s shift toward alternative routes through Iran and Central Asia, increasing the strategic importance of Chabahar for Afghan commerce.
Indian authorities have not indicated whether Washington is prepared to reinstate the exemption, and negotiations over the project’s future remain ongoing.
