India Gets Six-Month US Sanctions Waiver for Operations at Chabahar Port

October 30, 2025

New Delhi, October 30: The US has granted India a six-month exemption from sanctions imposed on Iran’s Chabahar Port. Foreign Ministry spokesperson Randhir Jaiswal announced this at a press conference on Thursday.

The US had previously announced that sanctions would be imposed on companies involved in working, investing, or operating at the port from September 29th, but the restrictions were later extended until October 27th. This exemption will now remain in effect for another six months.

India Acquired the Port on a 10-Year Lease in 2024

India acquired the Chabahar Port on a 10-year lease in 2024. Under this agreement, India will invest $120 million and provide a $250 million line of credit.

This port provides India with direct trade access to Afghanistan, Central Asia, Russia, and Europe.

Major benefits India will gain from Chabahar Port

1. Access to Central Asia by bypassing Pakistan

India will no longer need to send goods to Afghanistan or Central Asia via Pakistan.

From Iran’s Chabahar Port, India can directly send goods to Afghanistan and Central Asia, saving both time and cost.

2. Boosting trade and exports

India will now be able to easily send medicines, food items, and industrial products to other countries through Chabahar.

This will increase India’s exports and reduce logistics costs.

Furthermore, India and Iran can jointly develop Chabahar as a major trade hub.

3. India’s investments will be protected

India has already invested significantly in Chabahar Port.

The US exemption now allows India to proceed with this project without any obstacles.

4. Countering the China-Pakistan alliance

Chabahar Port is close to Pakistan’s Gwadar Port (where China is investing).
This gives India a strategic advantage and enables it to effectively counter the China-Pakistan alliance.

India is sending essential goods to Afghanistan through Chabahar.

Previously, India had to transit through Pakistan to send goods to Afghanistan, which was difficult due to border disputes.

Now, India sends wheat and other essential commodities to Afghanistan through the Chabahar Port and imports gas and oil from Central Asia.

History of the Chabahar Agreement

Negotiations between India and Iran regarding Chabahar began in 2003 during the Atal Bihari Vajpayee government.

In 2013, Manmohan Singh announced an investment of ₹8 billion (₹800 crore).

In 2016, Prime Minister Narendra Modi signed a trilateral agreement with Iran and Afghanistan, announcing an investment of ₹1,250 crore for port development.

In 2024, Foreign Secretary Vinay Kwatra discussed connectivity and trade cooperation with the Iranian Foreign Minister.

According to the Indian company IPGL, the port will have a capacity of 82 million tonnes upon completion.

Other highlights from the Ministry of External Affairs’ press conference

Since January this year, 2,790 Indian citizens have been deported from the US.

About 100 Indians have also been deported from the UK.

Negotiations on a trade agreement between India and the US are ongoing.

India has completely rejected the OIC (Organization of Islamic Cooperation) statements, saying the OIC has no right to comment on Kashmir.

Prime Minister Narendra Modi congratulated the new Prime Minister of Japan and discussed issues related to the Quad group.

Some Indian companies have been issued licenses to import rare minerals from China.