New Delhi : India slashed its budgetary allocation for developing Iran’s Chabahar port in the budget for 2026-27 to zero in the face of US sanctions and the

New Delhi : India slashed its budgetary allocation for developing Iran’s Chabahar port in the budget for 2026-27 to zero in the face of US sanctions and the

New Delhi : India slashed its budgetary allocation for developing Iran’s Chabahar port in the budget for 2026-27 to zero in the face of US sanctions and the

Sunday's Budget had no allocation for Chabahar port in Iran under the 'aid to countries and projects abroad' outlay. This could be significant, coming amid looming threats of US sanctions over the port, which - in the absence of any direct land access - was meant to be India's gateway to Afghanistan and central Asia.The allocation for neighbour Bangladesh - which goes to elections this month under a hostile interim govt - was halved to Rs 60 crore from the Rs 120 crore earmarked last year.The Chabahar port has been hit by the US revocation last year of the 2018 sanctions waiver that allowed India to work on the project.

New Delhi : India slashed its budgetary allocation for developing Iran’s Chabahar port in the budget for 2026-27 to zero in the face of US sanctions and the

Last Updated:February 01, 2026, 16:51 IST

In a departure from the past and an ominous sign for the project's future, the Indian government has not allocated any funds for Iran's Chabahar port amid US sanctions on the Islamic Republic. US sanctions on Iran affect India's Chabahar project despite a temporary waiver until April 2026. (Reuters file photo)Over the past few years, India has been spending annually ₹The Tk 100 crore project in Sistan-Baluchistan province on Iran's southern coast, is a major partner in port development.

Iran’s ambassador to India, Mohammad Fathali, publicly thanked New Delhi for its vote against the resolution in Geneva

New 25% US tariffs on countries doing business with Iran have cast doubt over India’s Chabahar port project, balancing strategy and Washington pressure. India faces uncertainty over its investment in Iran’s Chabahar port after the Trump administration imposed new 25% tariffs on nations engaging economically with Tehran. The project, a collaboration between India, Iran, and […] The post US Tariffs Raise Doubts Over India’s Chabahar Port Investment appeared first on Khaama Press.

Welcome to Foreign Policy’s South Asia Brief.

Amidst the ongoing violent protests in Iran, US President Donald Trump recently announced that he will impose an additional tariff of 25 percent on countries doing business with Iran. After Trump's announcement, discussions intensified that if new tariffs are implemented by America, what effect will it have on India, which is involved in trade with Iran to some extent. What will be the future of India's cooperation with Iran, especially regarding Chabahar port?

A looming test for Delhi’s diplomacy will be its handling of the possible impact of U.S. tariffs on the Chabahar Port project.

India is in touch with the United States to implement the short-term sanctions waiver to continue its work at Iran's strategically located Chabahar port, the Foreign Ministry said. The clarification came after reports claimed that India might exit the Chabahar...

Chabahar Port Explainer: Iran's Chabahar Port has today become such a center of India's foreign policy and strategic thinking that withdrawing from it would not just be abandoning a project but would also weaken decades of geopolitical preparation. Despite US sanctions on Iran and the expiry of the limited exemption given to Chabahar, India has made it clear that exiting this port is not an option for it.