Chabahar Crunch: Iran FM's Delhi Visit Eyes US Waiver Renewal Amid Sanctions Storm

India's strategic partnership with Iran is set to take centre stage next week as Iranian Foreign Minister Abbas Araghchi arrives in New Delhi on 15-16 January 2026.
The visit comes at a critical juncture, with the US sanctions waiver for Chabahar Port due to expire in April. Officials familiar with the matter indicate that the port's future will dominate discussions, underscoring its importance to India's regional connectivity ambitions.
Chabahar Port, strategically positioned on Iran's south-eastern coast along the Gulf of Oman, is managed by India Ports Global Limited (IPGL) under a 10-year agreement that began in 2024. This marks the first time India has assumed operational control of an overseas port facility. The long-term contract, signed on 13 May 2024 between IPGL and Iran's Port & Maritime Organisation, aims to enhance infrastructure and operational efficiency.
During his visit, Araghchi is scheduled to hold high-level meetings with key Indian counterparts. These include External Affairs Minister S Jaishankar, National Security Advisor Ajit Doval, and Ports, Shipping and Waterways Minister Sarbananda Sonowal. Such engagements reflect the multifaceted nature of India-Iran ties, spanning diplomacy, security, and trade.
The port serves as a vital gateway for landlocked Afghanistan and Central Asian republics, providing them access to the Indian Ocean Region and markets in India and the Gulf. It also offers connectivity to parts of Russia adjacent to Central Asia, bypassing Pakistan's ports like Gwadar. This positioning enhances regional trade routes and reduces dependence on adversarial pathways.
In October 2025, India secured a six-month US sanctions waiver specifically for Chabahar, enabling continued operations amid Washington's restrictions on Iran. The waiver's impending expiry adds urgency to the talks, as India seeks to safeguard its investments and sustain the port's development. Failure to renew it could disrupt ongoing projects and trade flows.
Chabahar plays a pivotal role in bolstering the India-Afghanistan economic partnership. It has facilitated the supply of humanitarian aid, including ambulances gifted by India during the Afghan Foreign Minister's visit to New Delhi last October. Afghanistan's Taliban administration has expressed keen interest in leveraging the port for broader global outreach.
Plans are underway to integrate Chabahar with the International North-South Transport Corridor (INSTC), a multimodal network linking India, Iran, Russia, and Europe. This corridor promises to cut transit times and costs, fostering trade efficiency across Eurasia. Integration efforts could accelerate if bilateral commitments are reaffirmed during Araghchi's visit.
Central Asian nations such as Uzbekistan, Kazakhstan, and Tajikistan are eager to utilise Chabahar for expanded trade with India and direct access to the Indian Ocean. These countries view the port as a counterbalance to Chinese-led initiatives like the Belt and Road. India, in turn, is pursuing an early harvest free trade agreement with the Eurasian Economic Union to tap into Eurasian markets and secure supplies of rare earth minerals.
Beyond Chabahar, the visit will commemorate 75 years of India-Iran diplomatic relations, established in 1950. Araghchi is expected to attend an exhibition showcasing historical bilateral documents, highlighting enduring ties rooted in civilisational links and mutual interests. This cultural diplomacy complements the strategic agenda.
The Foreign Minister will also engage with India's business community and a prominent think tank in New Delhi. These interactions aim to explore investment opportunities, technology transfers, and joint ventures in shipping, logistics, and energy sectors. Indian firms stand to benefit from Chabahar's growth as a transshipment hub.
Geopolitically, Chabahar counters Pakistan's Gwadar Port, which is deeply integrated into China's Belt and Road Initiative. By developing Chabahar, India diversifies its maritime options and strengthens influence in the Indian Ocean Region. The port's viability hinges on navigating US sanctions while advancing indigenous capabilities in port management.
India's operation of Chabahar aligns with its broader 'Act East' and 'Neighbourhood First' policies. It supports the SAGAR (Security and Growth for All in the Region) vision, promoting inclusive connectivity. Recent enhancements, including multipurpose berths and equipment upgrades, position the port to handle increased cargo volumes.
Challenges persist, including Iran's economic woes, regional instability, and fluctuating oil prices affecting funding. India has invested over $500 million in the port and a connecting rail line to Zahedan, with further commitments planned. Araghchi's visit could unlock additional financing and accelerate phase II development.
The US waiver's renewal remains uncertain amid heightened tensions over Iran's nuclear programme and regional proxies. India has adeptly balanced its ties with the US and Iran, citing Chabahar's role in Afghan reconstruction as a humanitarian imperative. Diplomatic advocacy will be key during the visit.
For Central Asia, Chabahar offers an alternative to northern routes via Russia, strained by the Ukraine conflict. Uzbekistan has already shipped goods through the port, signalling growing interest. A successful FTA with the Eurasian Economic Union could multiply trade volumes exponentially.
Afghanistan's reliance on Chabahar has intensified post-Taliban takeover, with India resuming limited aid via the port. Connectivity to the Chabahar-Zarang railway, under construction, will further streamline supplies to Kabul. This bolsters India's soft power in a volatile neighbourhood.
Araghchi's itinerary underscores Iran's desire to deepen ties amid Western isolation. Tehran views India as a reliable partner for economic revival and INSTC operationalisation. Joint statements from the visit may outline a roadmap for port expansion and waiver advocacy.
India's port diplomacy extends Chabahar's model to other projects, like the Sittwe Port in Myanmar. Lessons from Chabahar inform these ventures, emphasising public-private partnerships and technology integration. Success here could redefine India's role as a net security provider.
As the sanctions deadline looms, the visit represents a litmus test for India-Iran resilience. Renewed commitments could propel Chabahar into a premier trade hub, reshaping Eurasian logistics. Stakeholders await outcomes that balance pragmatism with strategic foresight.
Based On ET News Report
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