Opposition Slams India’s Chabahar Exit as Strategic Retreat
- By Thetripurapost Desk, New Delhi
- Jan 16, 2026
- 28
The Indian government under Prime Minister Narendra Modi has come under sharp domestic criticism following its withdrawal from the Chabahar port agreement with Iran, a move opposition leaders have characterised as a strategic capitulation rather than a considered foreign-policy decision.
India was reportedly forced to disengage from the project after the United States imposed a 25 per cent tariff on countries continuing commercial engagement with Tehran. New Delhi exited the project without issuing a formal public announcement, resulting in the apparent loss of approximately $120 million already paid to Iran. The funds, transferred prior to the withdrawal, are now believed to be irrecoverable.
In the aftermath of the decision, the board of directors of India Ports Global Limited (IPGL)—the state-run entity responsible for managing operations at Chabahar—submitted collective resignations. The company’s official website has also been taken offline, underscoring the sudden and opaque nature of the withdrawal.
Congress leader Pawan Khera described the development as “a new low” in India’s foreign policy, arguing that the issue extends beyond Chabahar or India’s energy purchases from Russia.
“So the question is not of Chabahar Port or of Russian oil. The question is: Why is Modi allowing the USA to arm-twist India?”
— Pawan Khera, post on X
India had assumed responsibility in 2024 for developing the strategically vital port under a 10-year agreement with Iran. According to a foreign journal, the $120 million already paid can now be used by Iran at its own discretion for construction and development at the port.
The Congress party strongly criticised the government, accusing Prime Minister Modi of once again yielding to pressure from former US President Donald Trump. It argued that Indian taxpayers’ money invested in a geopolitically significant project had effectively been squandered.
“$120 million of India’s taxpayers’ money was invested by the Modi government in this strategically important project, but now it has all gone up in smoke,”
the party said in a statement on X.
Opposition leaders also recalled that Prime Minister Modi had earlier described the Chabahar agreement as a “major strategic win,” noting that India’s operational control over the port has now been relinquished without any official explanation.
“Unfortunately, Modi has bowed before Trump’s pressure and compromised India’s national interest,”
the Congress party stated.
Meanwhile, economic and strategic analysts said the episode has revived long-standing concerns regarding India’s objectives at Chabahar. Some observers alleged that IPGL’s conduct suggested the company was established primarily to assert control over the port rather than to pursue purely commercial development.
However, the Ministry of External Affairs (MEA) denied reports of a complete withdrawal. MEA spokesperson Randhir Jaiswal told Indian media that India has not decided to exit the project and remains in discussions with the United States to secure an extension of the existing six-month sanctions waiver, which expires on 26 April 2026.
“On October 28, 2025, the US Department of the Treasury issued guidance on the conditional sanctions waiver, valid until April 26, 2026. We remain engaged with the US side in working out this arrangement,”
Jaiswal said during the weekly media briefing.
The waiver currently allows India to continue operating the Shahid Beheshti Terminal at Chabahar through IPGL. Indian media reports suggest that if the waiver is not extended, New Delhi may be compelled to withdraw fully or face sanctions-related consequences.