India refuses to abandon its operations at Iran's Chabahar Port despite mounting pressure from impending US sanctions. Government sources reveal that New Delhi is locked in delicate negotiations with Washington to secure a viable middle path, reported Aditya Raj Kaul of NDTV.

This strategic asset remains non-negotiable for India's connectivity ambitions in the region.

The US Department of the Treasury issued a conditional sanctions waiver on 28 October 2025, valid until 26 April 2026. This six-month extension was granted retrospectively from 29 October as a special case, ostensibly to allow India to wind down activities. However, New Delhi views this timeline as unacceptable and has no intention of exiting.

Top officials emphasise that Chabahar holds immense strategic value. It provides India with direct access to the Indian Ocean, Afghanistan, and Central Asia, circumventing Pakistan entirely. The port has proven vital for delivering humanitarian aid to Afghanistan, underscoring its geopolitical significance.

In 2024, India Ports Global Ltd (IPGL), a state-run entity, inked a 10-year contract with Iran. This agreement commits $370 million in investments, signalling long-term commitment rather than short-term commercial gains. Such foresight aligns with India's broader vision for regional infrastructure dominance.

Negotiations with the US are described as intricate. India seeks modalities that indirectly safeguard its interests while addressing American concerns over Iran. Sources stress that exiting is off the table, with New Delhi prepared to comply with sanctions conditions to maintain operations.

The Ministry of External Affairs (MEA) has echoed this stance. Spokesperson Randhir Jaiswal confirmed ongoing engagement with the US to refine the waiver arrangement. This follows NDTV's report on 30 October 2025, which highlighted the waiver's exemption for Indian operations amid wider sanctions on Iran.

Historical precedents bolster India's position. In 2018, during Donald Trump's first term, the US granted a rare exemption for Chabahar development. This occurred even as sweeping unilateral sanctions crippled Iran's main port at Bandar Abbas, which suffered from severe overcapacity.

Chabahar's role extends beyond trade. It forms the cornerstone of India's connectivity strategy, enhancing links to resource-rich Central Asia. For a nation surrounded by complex neighbourhood dynamics, the port offers a bypass to adversarial routes and fosters economic corridors.

The current impasse tests India's balancing act between strategic autonomy and its deepening US partnership. New Delhi navigates a labyrinth of global sanctions, including those on Russian oil firms. The MEA is studying these implications, prioritising energy security for 1.4 billion citizens through diverse, affordable sources.

Iran's Chabahar Port stands out as a litmus test. Unlike purely commercial ventures, it embodies India's proactive foreign policy. The 10-year deal reflects confidence in overcoming hurdles, much like past waivers that preserved momentum.

Government insiders remain optimistic yet cautious. They underscore that India will not relinquish this foothold lightly. Negotiations aim to demonstrate compliance without compromise, potentially reshaping US-India-Iran trilateral dynamics.

As the April 2026 deadline approaches, pressure mounts. Yet, New Delhi's resolve appears firm, drawing on lessons from 2018. The port's overcapacity issues at Bandar Abbas further highlight Chabahar's unique appeal for Indian shipping lines.

Broader geopolitical currents influence the talks. India's humanitarian missions via Chabahar to Afghanistan have earned international goodwill. Abandoning them would undermine credibility in regional stability efforts.

The MEA's measured rhetoric signals continuity. By framing energy decisions around national needs, India asserts sovereignty. This approach extends to Chabahar, where economic logic intertwines with security imperatives.

Sources portray the middle-ground option as multifaceted. It might involve scaled-back activities or third-party arrangements to assuage US worries. Whatever the form, the goal is sustained presence.

Chabahar's development predates recent tensions. India's investments have modernised berths and equipment, boosting capacity. This infrastructure now serves as a gateway for wheat shipments and reconstruction materials to Afghanistan.

In the sanctions-weary landscape, India's persistence sets it apart. While others retreat, New Delhi leverages diplomacy. The outcome could redefine how major powers accommodate allies' strategic exceptions.

Chabahar encapsulates India's ascent as a regional power. Refusal to vacate signals determination to protect assets vital for future growth. As talks progress, the world watches whether Washington grants further leeway.

Based On NDTV Report