- India is negotiating with the US to protect its strategic interests at Iran's Chabahar Port
- A six-month US sanctions waiver was granted to India until April 2026
- Exit from Chabahar is not an option for India, so it's in talks with the US as the waiver near expiry
As the clock ticks down to the expiry of the US sanctions waiver on India's operations at Iran's Chabahar Port, New Delhi is engaged in quiet but intensive negotiations with Washington to protect what it sees as a critical strategic and connectivity asset.
Top sources in the Indian government have told NDTV that India is exploring a "middle-ground" approach that could address American concerns while safeguarding India's long-term interests at the port.
"India is considering some options that would indirectly protect our interests in Chabahar Port and at the same time satisfy the US side to some extent," top government sources told NDTV, underlining that New Delhi is not preparing to pack up and leave.
According to the sources, after negotiations with the US, a six-month waiver till April 2026 was granted "as a special case" to wind up operations, but that pathway is "not an option as far as New Delhi is concerned".
"India continues to engage with the US side to work out modalities. Exiting the port is not an option as it's of strategic importance to India. India is keen to show the US that New Delhi will work on the conditions of the sanctions. So the negotiations are a bit complicated," the sources added.
The official position was echoed by the Ministry of External Affairs.
"As you are aware, on 28 October 2025, the US Department of Treasury had issued a letter outlining the guidance on the conditional sanctions waiver valid till 26 April 2026. We remain engaged with the US side in working out this arrangement," MEA spokesperson Randhir Jaiswal said to a question on the status of the waiver.
NDTV had reported on October 30, 2025 that American sanctions would not apply to India's Chabahar Port operations, with a special six-month waiver granted retrospectively from October 29. The reprieve came even as broader US sanctions on Iran remained in place.
In 2024, India had signed a 10-year contract with Iran under which the state-run India Ports Global Ltd (IPGL) committed investments of $370 million in Chabahar, underscoring the long-term nature of New Delhi's plans at the port.
For India, Chabahar is far more than a commercial venture. The port is central to New Delhi's connectivity strategy, offering access to the Indian Ocean and providing a crucial route to Afghanistan and Central Asia while bypassing Pakistan.
It has also been a key hub for India's humanitarian assistance to the people of Afghanistan. The strategic logic is not new: in 2018, during the first Trump administration, the US had issued a rare exemption to allow Indian companies to continue developing Chabahar even as sweeping unilateral sanctions were imposed on Iran, whose main port at Bandar Abbas was then facing overcapacity.
The current negotiations come at a time when New Delhi is also navigating a complex global sanctions landscape. The MEA had earlier said it was studying the implications of US sanctions on Russian oil companies.
"We are studying the implications of the recent US sanctions on Russian oil companies. Our decisions naturally take into account the evolving dynamics of the global market," the spokesperson had said last year.
Reiterating India's broader approach, the MEA added, "Our position on the larger question of energy sourcing is well-known. In this endeavour, we are guided by the imperative to secure affordable energy from diverse sources to meet the energy security needs of our 1.4 billion people."
Against this backdrop, Chabahar has emerged as another test case of how India balances strategic autonomy with its growing partnership with the US. For now, government sources are clear about the bottom line: while the waiver deadline looms, New Delhi is determined to find a workaround that keeps India anchored at Chabahar, even as it works to address Washington's concerns.
