India is weighing options on its stake in Iran's Chabahar Port ahead of the U.S. sanctions waiver expiry on April 26. According to Bloomberg, citing officials familiar with the matter, options include temporarily divesting from it.
New Delhi is holding separate talks with the U.S. and Iran on how to proceed with its $120 million investment. One option is to temporarily transfer the stake to an Iranian entity. India does not plan to exit the port entirely, since plans exist to expand connectivity through a rail link. Officials had hoped the waiver would be extended, but rising U.S.-Iran tensions made that unlikely. A final decision has not yet been made.
Indian External Affairs Minister Subrahmanyam Jaishankar told lawmakers in February that the country "remains engaged with all concerned in order to address the implications of these developments." Business Standard earlier reported that India was looking to divest its stake to an Iranian entity. India's Ministry of External Affairs, Ministry of Ports, Shipping and Waterways and Iran's Embassy in New Delhi did not immediately respond to requests for further information.
New Delhi signed a 10-year contract with Iran's Port and Maritime Organization in 2024, seeking to develop Chabahar as an alternative gateway to Afghanistan and Central Asia, bypassing rival Pakistan. The U.S. granted India a sanctions waiver in 2018; the exemption was revoked in September 2025 and, after lobbying from New Delhi, extended until April 2026. India is now striking a balance between Washington (sanctions) and Iran (strategic connectivity).
Key Takeaways:
1. India is reviewing options as the Chabahar sanctions waiver expires April 26.
2. Separate talks are underway with the U.S. and Iran; a temporary transfer is one option.
3. New Delhi does not plan to exit the port's $120 million investment entirely.
4. Foreign Minister Jaishankar said in February that India remains engaged with all parties.
5. Chabahar serves as an alternative gateway to Afghanistan and Central Asia, bypassing Pakistan.
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