India is considering a temporary transfer of its stake in Iran’s Chabahar Port to a local entity due to the impending expiration of a US Treasury sanctions waiver on April 26, 2026. This plan involves India Ports Global Limited divesting its shares in the India Ports Global Chabahar Free Zone to an Iranian partner, with assurances that the stake will revert to India once US sanctions are lifted.
Since entering a 10-year operational agreement with Iran’s Ports and Maritime Organisation in 2024, India has invested around USD 120 million in Chabahar, which serves as its only direct maritime access to Afghanistan and Central Asia. The port is crucial for India’s role in the International North-South Transport Corridor, a multimodal trade route connecting India to Europe and Russia. With the expiration of the sanctions waiver, India faces a pressing deadline to devise a strategy that mitigates sanctions risks while maintaining its long-term access to the port.
The Ministry of External Affairs has indicated ongoing discussions with the US to find a solution, framing the transfer as a “tactical recalibration” rather than a permanent withdrawal. Analysts warn that a full exit from Chabahar could allow China to expand its influence, making it challenging for India to walk away entirely while protecting its strategic interests.
