- By Shubham Bajpai
- Sat, 17 Jan 2026 08:41 AM (IST)
- Source:JND
Amid mounting crisis in Iran, the uncertainty looms over the future of India's Chabahar project, which has often faced hurdles due to geopolitical complexities, wars in the Middle East and the bitter US-Iran rivalry. Responding to the concerns, India on Friday said that it is engaging with the United States to ensure that work linked to the projects at the Chabahar Port continues under a time-bound sanctions waiver from Washington.
The waiver is set to expire on April 26 this year. While speaking at a weekly media briefing, Randhir Jaiswal, the Ministry of External Affairs spokesperson, said, "On the question of Chabahar, on 28 October, 2025, as you are aware, the US Department of the Treasury had issued a letter outlining guidance, the guidance on the Conditional Sanctions Waiver, which is valid until 26 April 2026. We remain engaged with the US side in working out this arrangement."
India is monitoring 25% tariff
The MEA spokesperson further reacted to an additional 25 per cent tariff announced by the US, saying it is closely monitoring developments and underlined that India maintains a long-standing partnership with Iran.
The 25 per cent tariff was announced by US President Donald Trump on Monday on countries doing business with Iran. The tariff will be applicable on "any and all business being done with the United States of America and is effective immediately," Trump wrote on the platform.
India also faces the heat of additional tariffs, as according to the MEA, India-Iran bilateral trade stands at USD 1.6 billion, with exports to Iran at USD 1.2 billion and imports at USD 0.4 billion.
What is India's Chabahar project?
In 2003, India proposed developing Iran's Chabahar Port to provide an alternative route for Indian goods to reach landlocked Afghanistan and Central Asia via road and rail connectivity under the International North-South Transport Corridor. The operationalisation of Chabahar would bypass Pakistan. At first, the progress on the progress had slowed due to US sanctions on Iran linked to its suspected nuclear programme.
In 2024, Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran signed a long-term agreement to operationalise India's role at the port. The agreement replaced the initial 2016 pact covering India's role at the Shahid Beheshti terminal, which was being extended annually.
India has used Chabahar in recent years for key consignments. In 2023, India shipped 20,000 tonnes of wheat assistance to Afghanistan and in 2021, environmentally friendly pesticides to Iran, via the Chabahar port.