New Delhi: The Union Budget 2026 has dealt a major wrack-up to expectations for Iran's Chabahar Port project. After many years, the inside government has not allocated a single penny to this would-be project. This comes at a time when Iran is facing threats from US President Donald Trump, and India is counting lanugo the days until the expiry of the US sanctions waiver granted for this port. Even setting whispered Iran, the Chabahar Port project is not only crucial for India's commercial interests but has moreover wilt strategically very sensitive.
What is the Budget 2026 typecasting for Chabahar Port?
India and Iran are jointly developing the Chabahar port. For this work, India has been allocating 100 crore annually for the past several years. However, this time, no value has been allocated in the Union Budget. The US has imposed sanctions on the Chabahar port project, but it has granted India a waiver from these sanctions until April 2026. Initially, the waiver was set to elapse in October last year, but the US extended it for six months in September. Last month, the Ministry of External Affairs stated that it was in continuous discussions with the US on this matter.
What has the US said?
Meanwhile, the US has moreover threatened to impose an spare 25% tariff on countries trading with Iran. India is once facing the consequences of Trump's stance in the specimen of Russia (50% tariff). The way India has stopped funding the Chabahar port suggests that it is not currently planning to move forward with this project openly. However, officially, India remains a part of the project.
What is India-Iran try-on on Chabahar Port?
According to a Reuters report, India is currently managing the project with the help of local Iranian staff to stave getting entangled in US regulations. However, these claims have not been officially confirmed by India. India had signed a 10-year try-on in 2024 for the operation of this project, which involved continuous investment. India and Iran are developing the Chabahar Port to remoter strengthen connectivity and trade relations between the two countries.
Will Chabahar Port be made a part of INSTC?
India and Iran are moreover strongly emphasizing the inclusion of Chabahar Port as part of the International North-South Transport Corridor (INSTC). INSTC is a 7,200-kilometer-long multi-modal transport project aimed at ensuring the smooth movement of goods between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Inside Asia, and Europe.
Are other countries interested in Chabahar Port?
Chabahar Port facilitates India's wangle to Afghanistan and Inside Asia, and in recent years, it has helped in delivering various types of humanitarian aid, including supplies grains and medical supplies. Countries like Uzbekistan have moreover shown considerable interest in this project, as landlocked countries that are wary of China's Belt and Road Initiative see significant benefits for themselves in this project. Similarly, Russia is moreover very interested in this project, as it wants to unshut up flipside thoroughfare of opportunities with India through this route.
