India may shift Chabahar Port stake amid US sanctions

• By Thetripurapost Desk, Teheran
• Apr 25, 2026
• 54

India is considering temporarily transferring its stake in Chabahar Port to an Iranian company, according to a Bloomberg report, as a way to keep operations running amid looming US sanctions.

The move comes as a six-month waiver granted by the United States in November 2025 is set to expire this month. India has invested around ₹1,100 crore in the port and is currently engaged in sensitive, parallel discussions with both the US and Iran to find a workable solution.

Officials indicate that the proposed transfer would be temporary, aimed at maintaining project continuity without violating sanctions. Importantly, India is not planning to exit the project and continues to view Chabahar as a key strategic asset.

Located near the Strait of Hormuz, Chabahar offers India direct access to Afghanistan and Central Asia, bypassing Pakistan. The port is central to India’s regional connectivity strategy and is also seen as a counter to China’s growing presence at Gwadar Port in Pakistan.

India’s engagement with Chabahar dates back to 2003 under the government of Atal Bihari Vajpayee. The project gained momentum in 2013 when Manmohan Singh announced an investment of ₹800 crore.

A major breakthrough came in 2016 when Narendra Modi signed the Chabahar Agreement with Iran and Afghanistan, committing ₹7 billion for a terminal and a ₹1,250 crore loan for port development. More recently, in 2024, former Foreign Secretary Vinay Kwatra held discussions with Iranian officials to boost connectivity.

Chabahar remains crucial for India’s trade ambitions. It allows direct shipment of goods such as medicines, food, and industrial products to Afghanistan and Central Asia, reducing time and logistics costs. It also enhances India’s strategic leverage in the region by balancing the China-Pakistan axis.

The potential stake transfer reflects India’s effort to balance its strategic interests with geopolitical realities, ensuring that the long-term vision for Chabahar remains intact.