India has made no allocation for the Chabahar port project in the 2026 Union Budget, a decision that comes amid escalating tensions between Washington and Tehran and uncertainty over US sanctions on Iran. For several years, New Delhi had earmarked an annual outlay of Rs 100 crore for the development of Chabahar, a flagship connectivity project located in Iran's Sistan-Balochistan province along its southern coast. India is a major partner in the development of the port, which has long been seen as a key part of its regional trade and strategic outreach to Afghanistan, Central Asia and beyond.