NEW DELHI – Around a decade back, India joined Iran for bustling corridors of international trade, as a quiet but ambitious plan was taking shape, a gateway that promised to reshape regional connectivity. Chabahar Port was not just a port, it was a bridge connecting India to Afghanistan and Central Asia without passing through Pakistan.
If we fast-forward it to 2025, there is a storm that erupted over the future of the same India–Iran joint Chabahar port project after US President Donald Trump announced a 25pc additional tariff on all countries trading with Iran. The move sparked intense speculation that India may be forced to abandon the strategically crucial port, which is seen as a gateway to Central Asia and Afghanistan.
Chabahar Port, located in Iran’s Sistan-Balochistan province, was being developed jointly by New Delhi and Tehran to provide India with direct access to Central Asia and Afghanistan, bypassing Pakistan. This project was viewed as a cornerstone of India’s regional strategy. But now, with the US threatening severe trade penalties, the future of the port remains murky.
Last year, India’s total trade with Iran was only $1.6 billion, representing a mere 0.15% of India’s overall trade, a small number, but strategically huge.
Chabahar was India’s key route to bypass Pakistan and gain direct access to Afghanistan and Central Asia. Without it, India’s regional ambitions could be severely undermined.
After Trump’s tariff announcement, reports intensified that India is quietly withdrawing from the Chabahar project to avoid US sanctions. When asked about these alarming claims, the Indian government responded cautiously, confirming it is in touch with both Iran and the United States to ensure that Chabahar remains fully operational.
In latest development, the spokesperson of the Ministry of External Affairs, Raveesh Kumar, said US Treasury Department issued a letter providing guidelines on conditional sanctions relief, valid until April 26, 2026.” Kumar added that the Indian government is in contact with the U.S. to finalize the arrangement and ensure the port’s continued functionality.
Indian newspapers are claiming that India is separating from the Chabahar project to protect itself from potential future U.S. sanctions. If true, this would be a major diplomatic blow to India’s strategic reach in Central Asia. Meanwhile, Pakistan can regain control over India’s access to Central Asia, drastically altering the strategic balance.
