India has been granted a six-month exemption from US sanctions to maintain its operations at the Chabahar Port in Iran, according to the Ministry of External Affairs (MEA). The relief, effective from September 29, 2025, provides India temporary flexibility to continue work on the strategically important port despite evolving US policy on Iran-related infrastructure projects.
Background of the Waiver
The Chabahar Port project has long been central to India’s regional connectivity strategy. In 2018, the United States granted India and a few other countries a special waiver under the Iran Freedom and Counter-Proliferation Act (IFCA), allowing operations at the port without the risk of sanctions.
However, the US government recently announced plans to revoke this waiver, citing broader changes in its Iran policy. In response, India engaged in diplomatic discussions to safeguard its interests. MEA spokesperson Randhir Jaiswal confirmed that Washington has now granted a temporary six-month exemption, ensuring continuity of port activities.
“The exemption allows India to continue its operations at Chabahar Port without facing sanctions, providing necessary operational stability,” Jaiswal said.
Strategic Significance of Chabahar Port
Situated on Iran’s southeastern coast along the Gulf of Oman, the Chabahar Port serves as a crucial gateway for India to access Afghanistan, Central Asia, and beyond, bypassing Pakistan. It supports the movement of essential commodities such as fertilisers, food grains, and other key goods to landlocked nations in the region.
The port’s development aligns with India’s broader connectivity and trade initiatives, particularly the International North-South Transport Corridor (INSTC), aimed at enhancing economic ties across Eurasia.
Geopolitical Context
The waiver comes at a time of shifting global and regional dynamics, especially after the Taliban’s return to power in Afghanistan and heightened tensions in West Asia. These developments have altered trade routes and regional security calculations, but Chabahar continues to retain strategic relevance for India’s foreign and economic policy objectives.
By extending this exemption, the US has offered India a crucial window to sustain its regional engagement and advance long-term infrastructure goals without immediate sanctions-related hurdles.
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