India is engaged in negotiations with Iran to secure its position in the strategically vital Chabahar Port as the United States sanctions waiver approaches expiry.

The discussions are aimed at finalising an arrangement that ensures India’s commercial and strategic interests are protected, even if the waiver is not extended beyond Sunday.

New Delhi is exploring an interim mechanism under which a local Iranian ports authority would manage operations, with a legal guarantee that rights would revert to India once sanctions are lifted.

The talks have been slowed by regional conflict, but officials remain focused on safeguarding India’s long-term access to the port. In October 2025, India obtained a six-month waiver from US sanctions, which is now set to lapse.

A parliamentary panel of the Ministry of External Affairs recently acknowledged the uncertainty surrounding Chabahar’s future, while commending the government’s continued engagement with stakeholders to mitigate risks.

India Ports Global Limited (IPGL), which has managed the port since 2024 under a 10-year agreement with Iran, is considering routing operations through a local entity. This arrangement would include a clause ensuring that operational rights are eventually transferred back to India. New Delhi is pressing Tehran for legal guarantees to ensure any interim arrangement is binding and respected.

Analysts caution that China could attempt to expand its role in Chabahar if India’s presence weakens, a scenario viewed as detrimental to India’s strategic interests.

The port is a critical gateway for Afghanistan and Central Asian nations to access the Indian Ocean and Indian markets, while also offering connectivity to Russia through Central Asia. It has been central to India’s humanitarian assistance to Afghanistan and is expected to integrate with the International North-South Transport Corridor.

India signed a landmark 10-year contract on 13 May 2024 to operate Chabahar, marking its first overseas port management deal. The country has invested approximately $120 million in the project and extended a $250 million credit window for related infrastructure.

Central Asian states such as Uzbekistan, Kazakhstan and Tajikistan are keen to use Chabahar to expand trade with India and secure access to the Indian Ocean. The port is also expected to play a pivotal role in India’s pursuit of an early harvest trade agreement with the Eurasian Economic Union, strengthening its role as a hub for regional connectivity.

Agencies