US Grants India Six-Month Waiver on Sanctions for Chabahar Port Project
The United States has granted India a six-month exemption from sanctions on the Chabahar Port project in Iran, enabling India to continue developing this key trade route to Afghanistan and Central Asia. The waiver ensures operational continuity and supports India’s regional connectivity strategy, while India continues diplomatic engagement with the US on a broader trade framework.
In a significant diplomatic development, the US government has extended a six-month sanctions waiver to India for its operations at the Chabahar Port in Iran, previously set to expire in late October 2025. This exemption allows India to pursue its strategic and economic interests by maintaining the port's development uninterrupted. Chabahar Port is crucial for India as it provides a vital trade corridor bypassing Pakistan, connecting India directly to Afghanistan, Central Asia, Russia, and Europe. India signed a 10-year lease for the port in 2024 and committed substantial investments for its infrastructure and concessional credit. The waiver reflects recognition of India's role in regional stability and trade connectivity, balancing complex geopolitical and energy security challenges. Despite the US's prior intent to revoke exemptions under the Iran Freedom and Counter-Proliferation Act aligned with its maximum pressure policy on Tehran, diplomatic negotiations facilitated this temporary relief. Indian officials emphasize that securing affordable, reliable energy and diverse trade routes is essential for the country's 1.4 billion population. The Chabahar Port also counters China's influence, especially against its rival Gwadar Port in Pakistan allied with China's Belt and Road Initiative. The US waiver thus not only sustains India’s regional strategy but also embeds it as a key player in maintaining supply chains and geopolitical balance across Central Asia and beyond while talks on further trade agreements continue.
