Iran Open to Indian Involvement in Chabahar as Budget Cut Sparks Questions
Iran Open to Indian Involvement in Chabahar as Budget Cut Sparks Questions
Iran says Chabahar remains open to India despite budget cuts, underscoring its strategic role for Afghanistan and Central Asia.
Iran’s envoy to India, Mohammad Fathali, said on Friday that Tehran remains open to working with New Delhi on operations at Chabahar port, even as there has been no official word from India on the facility after the budget for 2026-27 slashed to zero. He stressed that Chabahar is vital for access to Afghanistan and Central Asia and that the port’s location on the Gulf of Oman gives it significant regional connectivity value. Up to now, Iran has indicated a willingness to expand cooperation on the issue, though details about how India’s role might be managed were not provided.
The broader backdrop includes the winding up of India Ports Global Ltd, which had overseen operations at the Shahid Beheshti terminal since 2018, and the resignation of Indian officials associated with the firm in the wake of US sanctions. Budget documents showed that the allocation for Chabahar had been revised from ₹100 crore to ₹400 crore for 2025-26 but then set to nil for 2026-27. Fathali noted that any questions about India’s continued participation should be directed to New Delhi, adding that the port’s fundamental value remains unchanged and that some countries will continue to use its strategic location for access to Central Asia and Afghanistan.
In parallel, India has fulfilled its stated financial commitment of $120 million for procuring port equipment, and sources have noted a broader context including a separate $250 million credit line for future development. Iran’s ambassador highlighted the port’s strategic importance for regional access and expressed confidence that the Indian government will manage the evolving situation. While sanctions climate has created uncertainty, Tehran signaled a willingness to expand ties with India on this marquee infrastructure project, underscoring Chabahar’s role in regional connectivity and trade diversification.
