The recent directive from the Trump administration raises concerns regarding the future of India’s Chabahar port project in Iran.
Strategic Importance of Chabahar Port
- Located on Iran’s southeastern coast, providing India direct access to Afghanistan & Central Asia.
- Bypasses Pakistan, enhancing regional connectivity & trade.
- Developed under a trilateral agreement involving India, Iran, and Afghanistan.
- Managed by India Ports Global Limited (IPGL) since 2018.
India’s Investment & Development Efforts
- India signed a 10-year agreement in 2024, committing $120 million for port development.
- Provided a $250 million credit facility for infrastructure projects.
- Port traffic has significantly increased, handling 90,000+ TEUs(twenty-foot equivalent units) since 2018.
Impact of US Sanctions
- Trump administration’s directive raises concerns over sanctions waivers for India’s operations.
- May jeopardize long-term investments and hinder development.
- Could further strain India-Iran trade, which fell from $13 billion (2018-19) to < $1 billion (2019-20 onwards).
Geopolitical Challenges for India
- Balancing strong US ties while maintaining strategic relations with Iran.
- Chabahar vital for India’s influence in Afghanistan & Central Asia.
- PM Modi’s Washington visit expected to address concerns and seek resolution.
Future Prospects
- US-India talks will focus on protecting India’s investment in Chabahar.
- The outcome will shape India’s regional connectivity & trade ambitions amid global diplomatic pressures.
