NEW DELHI: India is taking steps to safeguard its stake in the strategically important Chabahar port in Iran amid growing pressure from the United States, officials familiar with the matter said on Friday. The development comes as the six-month exemption from US sanctions granted to the port last year approaches its expiry in April, prompting New Delhi to recalibrate its involvement to reduce exposure for both state-owned entities and government officials.

The Chabahar port, particularly the Shahid Beheshti terminal, is central to India’s regional connectivity strategy, enabling trade with Afghanistan, Central Asia, and Russia. It is also a key component of the International North-South Transport Corridor (INSTC), a 7,200-km transport network aimed at moving goods from India to Europe efficiently, bypassing Pakistan. Maintaining an operational presence at the port is also considered crucial for diplomatic engagement with Iran, which has supported India on multilateral forums such as the United Nations on issues including Kashmir.

Steps Taken to Limit Exposure

According to sources, India has already undertaken several measures to reduce the exposure of government officials and state-run entities to potential punitive US measures. One of the most notable steps has been the resignation of all Indian government officials from the board of India Ports Global Limited (IPGL), the state-owned company that took over operations at the Shahid Beheshti terminal in 2018. These resignations are part of a broader effort to shield officials from individual sanctions.

In addition, officials said India is exploring alternative arrangements to operate the port through entities that would either not be exposed to sanctions or would be structured to withstand them. This could include setting up a new company or restructuring existing arrangements to ensure continuity of operations while limiting risk from US enforcement actions.

External affairs ministry spokesperson Randhir Jaiswal confirmed India’s ongoing engagement with the US over the Chabahar issue. “As you are aware, on October 28, 2025, the US Department of Treasury had issued guidance on the conditional sanctions waiver, valid till April 26, 2026. We remain engaged with the US side in working out this arrangement,” he said during a weekly media briefing, without disclosing further details.

Financial Commitment to Chabahar

India has already fulfilled a key financial commitment under its 10-year agreement with Iran signed in May 2024, contributing $120 million for developing the Shahid Beheshti terminal. The funds are intended to equip the terminal with infrastructure including mobile harbour cranes, rail-mounted quay cranes, forklifts, and pneumatic unloaders, which are critical for port operations and efficient cargo handling.

Sources indicated that India remains committed to fulfilling its obligations and retaining operational influence at the port while minimizing exposure to any new or unforeseen US sanctions. “We still have four months, and we remain engaged with the US to see what can be done,” one official said.

Context of US Pressure

US President Donald Trump has increased pressure on countries dealing with Iran in light of the ongoing protests and crackdown in Tehran, threatening punitive measures including a 25% tariff on all nations trading with Iran. While Indian authorities maintain that the impact of such a measure would be limited—given that India-Iran trade totaled $1.68 billion in 2024-25, or roughly 0.15% of India’s total trade—the potential for sanctions has nonetheless prompted New Delhi to take precautionary measures.

It is important to note that the 25% tariff threat has so far only been issued through social media posts, without formal notification or an executive order, leaving some uncertainty over its enforceability. India already faces other US tariffs, including a 50% levy on certain exports and a 25% punitive tariff on Russian oil imports, underscoring the broader trade challenges New Delhi navigates in its relations with Washington.

Strategic Importance of Chabahar

Chabahar is not only a commercial port but also a geopolitical asset for India, allowing it to bypass Pakistan in reaching Afghanistan and Central Asia. Retaining influence at the port ensures India continues to have leverage in regional trade corridors and maintains goodwill with Iran, which has been a consistent supporter of India’s positions in international forums.

As the waiver expiry approaches in April, Indian authorities are carefully evaluating contingency options, including restructuring operational responsibilities and exploring alternative entities to minimize risk while ensuring India’s long-term strategic and commercial interests at Chabahar remain intact.

In summary, India is balancing its economic, strategic, and diplomatic interests in Chabahar by reducing exposure of state-run companies and officials to US sanctions, continuing financial commitments to port development, and exploring resilient operational models—all while engaging closely with Washington to maintain the exemption and avoid disruptions in this critical international trade and logistics hub.