India's Response to US Revocation of Chabahar Port Waiver
India is currently assessing the implications of the United States' decision to revoke the sanctions waiver for operations at Iran's Chabahar Port. This waiver, issued in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), will expire on September 29, 2025.
Strategic Importance of Chabahar Port
- Chabahar Port provides India with critical access to Afghanistan and Central Asia, enabling it to bypass Pakistan.
- Plans to connect Chabahar with the International North-South Transport Corridor (INSTC) are underway.
- Central Asian countries like Uzbekistan, Kazakhstan, and Tajikistan are interested in using the port for access to the Indian Ocean Region.
US Policy and Global Implications
- The revocation aligns with Washington's "maximum pressure" campaign against Tehran to isolate the Iranian regime.
- The US State Department has expressed the move as part of disrupting "illicit financial networks" linked to Iran's military activities.
- The decision may impact India's connectivity strategies with Afghanistan and Eurasia.
- There are concerns that this could inadvertently bolster China's Belt and Road Initiative (BRI) and the China–Pakistan Economic Corridor (CPEC).
India's Position and Future Plans
- India signed a 10-year contract on May 13, 2024, to operate Chabahar, marking its first overseas port management deal.
- The agreement is between Indian Ports Global Limited (IPGL) and Iran’s Ports and Maritime Organisation.
- Internal consultations are being held by the Indian government to address the situation arising from the waiver's revocation.
