MEA says India in talks with US as Chabahar sanctions waiver nears April 2026 expiry
While Washington reimposed sanctions on Iran last year, it granted India a conditional six-month waiver for the Chabahar project. The Trump administration has since threatened a 25% tariff on countries maintaining trade ties with Iran.
- Jan 16, 2026,
- Updated Jan 16, 2026 10:37 PM IST
India is reassessing its role in the development of Iran’s Chabahar port as the US waiver protecting the project from sanctions is set to expire on April 26, 2026. The review comes amid fresh American tariffs and rising tensions with Tehran.
India is a key stakeholder in the strategically located port in Iran’s Sistan-Balochistan province. While Washington reimposed sanctions on Iran last year, it granted India a conditional six-month waiver for the Chabahar project. The Trump administration has since threatened a 25% tariff on countries maintaining trade ties with Iran.
"We remain engaged with the US side in working out this arrangement," External Affairs Ministry spokesperson Randhir Jaiswal said on January 16, referring to the existing sanctions waiver.
Amid reports that India may exit the project, Jaiswal noted that the government is exploring all options. He also emphasised India's long-standing relationship with Iran and said the situation is being closely monitored.
India is expected to transfer around $120 million — the committed amount for the project — as part of a strategy to reduce direct exposure to Chabahar, PTI reported citing sources. Officials are also evaluating the creation of a new entity to carry the project forward, allowing continued Indian support without direct government involvement.
The Chabahar port is central to India’s connectivity ambitions and is being pitched as part of the International North-South Transport Corridor (INSTC), a 7,200-km trade route connecting India with Central Asia, Russia, and Europe.
Meanwhile, unrest in Iran continues, with over 2,500 reported deaths amid widespread anti-government protests. In response, India has urged its citizens to leave the country and advised against travel to Iran.
“We are keeping a close watch on the situation there,” Jaiswal said. “Approximately 9,000 of our citizens are currently residing in Iran. The majority of them are students.”
The Indian embassy in Tehran remains in contact with nationals on the ground, and multiple advisories have been issued. New Delhi reiterated on Wednesday that Indian citizens should leave Iran by any available means due to deteriorating security conditions.
President Donald Trump recently warned of strong action if Iran intensifies its crackdown on protesters. “If they hang them, you're going to see some things... We will take very strong action,” he told CBS News. He also sent a message to demonstrators, saying “help is on the way.”
Protests in Iran began in response to a currency crash and have since evolved into broader anti-regime demonstrations across all 31 provinces.
Despite geopolitical pressures, the Indian government maintains that the impact of the new US tariffs on its overall trade with Iran — which totaled $1.6 billion last year — is likely to be minimal. Indian exports accounted for $1.2 billion of that, with imports at $0.4 billion.
India is reassessing its role in the development of Iran’s Chabahar port as the US waiver protecting the project from sanctions is set to expire on April 26, 2026. The review comes amid fresh American tariffs and rising tensions with Tehran.
India is a key stakeholder in the strategically located port in Iran’s Sistan-Balochistan province. While Washington reimposed sanctions on Iran last year, it granted India a conditional six-month waiver for the Chabahar project. The Trump administration has since threatened a 25% tariff on countries maintaining trade ties with Iran.
"We remain engaged with the US side in working out this arrangement," External Affairs Ministry spokesperson Randhir Jaiswal said on January 16, referring to the existing sanctions waiver.
Amid reports that India may exit the project, Jaiswal noted that the government is exploring all options. He also emphasised India's long-standing relationship with Iran and said the situation is being closely monitored.
India is expected to transfer around $120 million — the committed amount for the project — as part of a strategy to reduce direct exposure to Chabahar, PTI reported citing sources. Officials are also evaluating the creation of a new entity to carry the project forward, allowing continued Indian support without direct government involvement.
The Chabahar port is central to India’s connectivity ambitions and is being pitched as part of the International North-South Transport Corridor (INSTC), a 7,200-km trade route connecting India with Central Asia, Russia, and Europe.
Meanwhile, unrest in Iran continues, with over 2,500 reported deaths amid widespread anti-government protests. In response, India has urged its citizens to leave the country and advised against travel to Iran.
“We are keeping a close watch on the situation there,” Jaiswal said. “Approximately 9,000 of our citizens are currently residing in Iran. The majority of them are students.”
The Indian embassy in Tehran remains in contact with nationals on the ground, and multiple advisories have been issued. New Delhi reiterated on Wednesday that Indian citizens should leave Iran by any available means due to deteriorating security conditions.
President Donald Trump recently warned of strong action if Iran intensifies its crackdown on protesters. “If they hang them, you're going to see some things... We will take very strong action,” he told CBS News. He also sent a message to demonstrators, saying “help is on the way.”
Protests in Iran began in response to a currency crash and have since evolved into broader anti-regime demonstrations across all 31 provinces.
Despite geopolitical pressures, the Indian government maintains that the impact of the new US tariffs on its overall trade with Iran — which totaled $1.6 billion last year — is likely to be minimal. Indian exports accounted for $1.2 billion of that, with imports at $0.4 billion.