In a development that underscores India’s growing diplomatic agility, India has confirmed a six-month exemption from U.S. sanctions on Iran’s Chabahar Port, allowing it to continue operations and investments in one of the most geopolitically significant infrastructure projects in the region.
The Ministry of External Affairs (MEA) spokesperson, Randhir Jaiswal, announced on Thursday that Washington has granted India temporary relief from its sanctions regime that otherwise restricts economic engagement with Iran. “We have been granted an exemption for a six-month period on American sanctions applicable to the Chabahar Port,” Jaiswal stated during a weekly press briefing.
The announcement follows months of behind-the-scenes diplomacy, in which India is believed to have leveraged its strategic position, both as a key U.S. partner in the Indo-Pacific and as a major investor in Iran’s only oceanic port on the Gulf of Oman.
A Decade-Long Vision, Now on a Tighter Clock
In May 2024, India and Iran signed a 10-year agreement giving India’s Ports Global Limited (IPGL) operational control over parts of the Chabahar Port, along with a US $370 million commitment for port equipment and infrastructure development.
The port, located just 170 kilometers west of Pakistan’s China-funded Gwadar Port, has long been touted as India’s gateway to Afghanistan, Central Asia, and beyond, bypassing Pakistan’s chokehold on direct overland routes. For New Delhi, Chabahar represents more than trade. It is a statement of intent, that India can carve out its own corridors of connectivity even amid global sanctions regimes and great-power rivalries.
Why the U.S. Exemption Matters
Washington’s sanctions against Iran were reimposed in 2018 after the U.S. withdrawal from the Joint Comprehensive Plan of Action (JCPOA), the Iran nuclear deal. Those sanctions have since complicated international participation in Iranian infrastructure and energy projects.
While the U.S. had previously issued limited exemptions for Chabahar, citing its importance to Afghanistan’s economic stability, these were often temporary, uncertain, and heavily conditioned.
This new six-month waiver therefore marks an important diplomatic success for India, particularly at a time when Washington is reasserting its sanctions policies while simultaneously seeking India’s cooperation in the Indo-Pacific. In practical terms, the exemption ensures that Indian shipping lines, insurance firms, and banking partners can continue to transact for port operations, activities that would otherwise risk being penalised under U.S. law.
The Strategic Web: India, Iran, and the United States
India’s tightrope walk is delicate. On one hand, it relies on American defence cooperation and technology transfers as part of the Quad alliance and its Indo-Pacific strategy. On the other, it maintains a centuries-old civilisational and economic relationship with Iran, a key gateway to Eurasia’s energy and trade corridors. Chabahar is not merely a port; it’s India’s logistical lifeline to Central Asia and the International North-South Transport Corridor (INSTC)– linking Mumbai to Moscow via Bandar Abbas, Tehran, and the Caspian Sea.
Analysts note that the U.S. exemption may have less to do with generosity and more with geostrategic calculus. As China deepens its presence at Gwadar and across the Persian Gulf, Washington may find it useful for India to remain economically active in Iran, indirectly balancing Beijing’s influence.
A Calculated Win Amid Global Sanctions Storms
The exemption comes at a time when India is also closely observing new U.S. sanctions on Russian energy firms, a matter that directly impacts New Delhi’s discounted oil imports from Moscow. MEA officials have signalled that India’s energy strategy remains pragmatic, driven by “national interest and market realities.”
This positioning- pragmatic, multi-aligned, and quietly assertive, defines India’s modern foreign policy posture. Chabahar, in this sense, is not just a port but a microcosm of India’s strategic autonomy: cooperating with the U.S. where interests align, engaging with Iran and Russia where they must, and keeping China’s encirclement strategy in check.
Beyond Six Months: The Road Ahead
While the exemption gives breathing room to India’s operations, it remains temporary, and thus fragile. The next steps will likely depend on how U.S.–Iran relations evolve, the state of the 2025 U.S. presidential campaign, and whether Washington re calibrates its sanctions framework around a more multi-polar reality.
For now, however, India’s continued presence in Chabahar signals that its long-term Eurasian vision remains intact. The port stands as a rare symbol of continuity in a region often defined by volatility.
As one senior diplomat privately remarked, “Chabahar has survived three U.S. administrations, multiple sanction waves, and two wars. That tells you everything about its importance, and India’s persistence.”
