Chabahar Port in Iran keeps appearing in India’s foreign policy headlines. Here is why this single port matters so much to New Delhi.

Chabahar gives India direct access to Afghanistan and Central Asia while bypassing Pakistan. Indian goods can travel by sea to the port and then overland north, avoiding the land route through Pakistan, which India cannot use for trade.

India Ports Global Ltd, a government-owned company, operates the Shahid Beheshti terminal at the port under a long-term agreement with Iran. India has fulfilled a $120 million financial commitment under the main contract signed in May 2024.

The port is also a key link in the International North-South Transport Corridor, which aims to connect India with Russia and Europe through Iran and Central Asia.

The complication is US sanctions on Iran. Washington had exempted Chabahar from certain sanctions, recognising its role in Afghanistan’s development. But that waiver expired on April 26, 2026, freezing fresh Indian activity at the port.

Reports say India is considering handing operations to a local Iranian entity temporarily, with rights reverting once sanctions lift. The External Affairs Ministry says it is in touch with all stakeholders on the port’s future.