India is carefully reviewing the US decision to revoke the sanctions waiver for Iran’s Chabahar Port, a move that could directly affect New Delhi’s strategic and economic interests in the region.
During a press briefing on Friday, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said:
“We have seen the US press statement regarding revocation of sanctions waiver for Chabahar Port. We are presently examining its implications for India.”
US Decision on Chabahar Waiver
The announcement came two days after the US State Department confirmed it was lifting the exemption originally granted in 2018. The waiver, issued under the Iran Freedom and Counter-Proliferation Act (IFCA), had allowed India and other partners to develop the port for Afghanistan’s reconstruction and Central Asian trade.
The US said the waiver’s withdrawal is in line with its “maximum pressure policy” aimed at isolating Iran. The change takes effect on September 29, 2025, after which anyone involved in operating or expanding the Chabahar Port could face sanctions.
Why Chabahar Matters for India
The decision places India in a difficult position. In May 2024, New Delhi signed a 10-year agreement to operate a terminal at Chabahar, located on the Gulf of Oman. The project is critical for India’s trade strategy as it provides a gateway to Afghanistan and Central Asia, bypassing Pakistan.
First proposed in 2003, Chabahar is also part of the International North-South Transport Corridor, a key route aimed at boosting connectivity and reducing dependency on traditional trade channels.
On Pakistan-Saudi Arabia Defence Pact
Jaiswal also addressed the new defence pact between Pakistan and Saudi Arabia, which states that an attack on one would be considered an attack on both.
“India and Saudi Arabia have a wide-ranging strategic partnership that has deepened considerably in the last few years. We expect that this partnership will keep in mind mutual interests and sensitivities,” he said.
Analysts suggest the pact could influence India’s defence ties with Riyadh, where cooperation has grown in recent years.
India-US Trade Talks
Commenting on trade negotiations with the US, Jaiswal said discussions between US Trade Representative Brendan Lynch and India’s Commerce Ministry were “positive and forward-looking.”
He confirmed that efforts would be intensified to conclude a “mutually beneficial” trade agreement. Talks had earlier faced hurdles over US demands to allow dairy and genetically-modified (GM) agricultural products into India.
On Nepal’s Political Transition
On Nepal, Jaiswal welcomed the new interim government led by Sushila Karki, who took office on September 12 following violent protests and the resignation of former Prime Minister K. P. Sharma Oli.
Prime Minister Narendra Modi also spoke with PM Karki, assuring India’s continued support for peace, stability, and development in the Himalayan nation.