India has received a six-month exemption from United States sanctions for its operations at the Chabahar Port project in Iran, the Ministry of External Affairs announced on Thursday.
The waiver, which took effect on September 29, offers temporary relief for New Delhi after Washington’s decision last month to revoke a similar sanction waiver that had been in place since 2018 under the Iran Freedom and Counter-Proliferation Act.
MEA spokesperson Randhir Jaiswal confirmed the development during a media briefing in New Delhi, saying, “India has been granted a waiver for Chabahar port in Iran from US sanctions for the next six months.” He made the statement while addressing various issues of global significance.
The US decision to revoke the earlier waiver, announced on September 16, had sparked concerns about the future of India’s involvement in the strategic project.
The earlier waiver, introduced during Donald Trump’s presidency in 2018, had allowed India and other nations to continue work on the port without attracting US penalties.
The Chabahar Port, located in southeastern Iran, holds significant strategic value for India. It provides a vital trade route to Afghanistan and Central Asia, allowing India to bypass Pakistan entirely.
The port has long been viewed as a crucial part of India’s regional connectivity and trade strategy, strengthening its access to landlocked nations in Central Asia.
In mid-September, the US Department of State said in a statement that the decision to revoke the waiver aligned with President Trump’s “maximum pressure policy to isolate the Iranian regime.”
The statement added, “Once the revocation is effective, persons who operate the Chabahar Port or engage in other activities described in IFCA may expose themselves to sanctions under IFCA.”
The Chabahar Port was initially seen as a major milestone in India’s regional outreach when it was inaugurated in 2018. It offered India an alternative trade corridor to Afghanistan that did not rely on Pakistani routes.
The project also symbolised a counterbalance to China’s growing presence in the region through its development of the Gwadar Port in Pakistan’s Baluchistan province.
However, the regional dynamics have shifted in recent years. The Taliban’s return to power in Afghanistan in 2021 significantly reduced Chabahar’s relevance as a gateway to Kabul. Trade through the port slowed down as instability and uncertainty grew in the region.
At the same time, under Donald Trump, the US adopted a tougher approach toward India compared with previous administrations. Washington imposed tariffs on Indian goods and expressed unease over New Delhi’s close ties with Moscow.
The move to end the earlier waiver was seen as part of a broader effort by the Trump administration to tighten its stance against Tehran, even at the cost of straining relations with its strategic partners.
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Despite these challenges, India has continued to highlight Chabahar’s role as a crucial part of its long-term connectivity vision. The port is also viewed as a cornerstone of the International North-South Transport Corridor (INSTC), aimed at linking India with Russia and Europe through Iran.
The latest six-month exemption from sanctions is expected to allow India to maintain its presence in Chabahar and pursue its ongoing projects there.
However, analysts believe that the limited duration of the waiver underscores the uncertainty surrounding India’s future role in the port, as the geopolitical situation around Iran and Afghanistan remains fluid.
The temporary relief also reflects Washington’s balancing act, acknowledging India’s strategic interests in the region while maintaining its hardline policy toward Iran.
For New Delhi, the challenge will be to continue advancing its regional trade ambitions while managing diplomatic sensitivities with both the United States and Tehran.
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