United States removes waivers on Iran's Chabahar port, leaving India in a precarious position
In May 2016, the International Transport and Transit Corridor, also known as the Chabahar Agreement, was signed between India, Iran, and Afghanistan. This agreement marked a significant step towards strengthening the region's connectivity, with a focus on India's plans to reach Afghanistan and Central Asia without relying on Pakistan.
The Chabahar port, located in Iran's Sistan-Baluchistan province, is a deep-water port that is the closest Iranian port to the United States. Its strategic location in the open sea makes it safe and accessible for large ships, a crucial factor for its importance in India's strategic plans.
India has been actively involved in the development of the Shahid Beheshti Terminal at Chabahar, a key component of its strategic vision. In December 2018, India Ports Global Limited took over the port's operations. Since then, Chabahar has handled more than 90,000 TEUs of container traffic and over 8.4 million metric tonnes of bulk and general cargo.
The port has played a significant role in India's humanitarian efforts, with 2.5 million tonnes of wheat and 2,000 tonnes of pulses sent to Afghanistan, and 40,000 litres of an eco-friendly pesticide to Iran.
However, a recent decision by the US government could potentially disrupt these operations. The US State Department's principal deputy spokesperson, Thomas Pigott, announced that the special waiver for the Chabahar port, which allowed India and other countries to develop and use the port without US restrictions, will be cancelled from September 29, 2025.
This decision is part of the US's 'maximum pressure' policy to 'isolate the Iranian regime.' After this deadline, anyone operating or funding activities at Chabahar Port will face US sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA).
The US decision directly impacts India, as it will face US sanctions if it continues to operate or fund activities at Chabahar Port after the deadline. This could increase legal and financial risks, potentially deterring further investment and complicating operations at the port.
It is important to note that Chabahar Port is located near Pakistan's Gwadar Port, which has been developed by China. The US decision ends a special exemption given to India in 2018, which allowed India to develop and use the port without US restrictions.
India has provided equipment worth USD 25 million for the development of the Shahid Beheshti Terminal at Chabahar. The potential implications of the US decision could significantly impact these investments and India's strategic plans for the region.
As the deadline approaches, it remains to be seen how India will navigate this complex geopolitical landscape and maintain its strategic interests in the region.
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