In 2024, India inked a 10-year deal with Iran, granting India Ports Global Limited (IPGL) the rights to develop and operate the Shahid Beheshti Terminal at Chabahar Port. This port is a critical link in the International North-South Transport Corridor (INSTC) that connects India with Afghanistan, Central Asia, Russia, and Europe, bypassing Pakistan. The investment from India amounts to approximately ₹4000 crore.
What Happened?
In September 2025, the US reimposed stringent sanctions on Iran, reversing the exemptions given in 2018 by the Trump administration. OFAC (Office of Foreign Assets Control) gave India a six-month wind-down period from October 2025 to April 2026 to cease all operations.
Read Also: US Warships and Missiles Ready, Looming Conflict... Discover Where Khamenei's Secret Hideout Is
Source: aajtak
During This Period
Government-appointed directors collectively resigned from the IPGL board. The company’s website was shut down to shield involved parties from US sanctions. India also transferred $120 million to settle debts and dues.
On January 12, 2026, President Trump announced a 25% additional tariff on any country trading with Iran, increasing pressure on India, given its extensive trade relations with the US.
Discover How the Vessel That Saved Many Species from Catastrophe Was Found by Scientists
Reactions to the Decision
The opposition called it capitulation to the US, neglecting national interests. However, the government and its supporters saw it as a pragmatic move to avoid confrontation and protect the economy.
Source: aajtak
Chabahar is strategic for India: it counters Pakistan's Gwadar Port (developed by China) and provides a humanitarian corridor to Afghanistan for supplies like food and medicine.
The Current Situation
With the wind-down period lasting until April 2026, India has resolved to fully exit. Meanwhile, significant protests in Iran are complicating matters further. India is now considering alternative routes.
