India denies reports of exit from Chabahar port amid US sanctions

India has come under domestic scrutiny over the future of its involvement in the Chabahar port project in Iran, following reports that the country may be forced to withdraw due to US sanctions.

However, the Ministry of External Affairs (MEA) denied the reports in a statement to Indian media today, saying India has not decided to exit Chabahar. MEA spokesperson Randhir Jaiswal told reporters that India continues to engage with the US seeking an extension of the six-month sanction waiver, which is currently set to expire on 26 April 2026.

“On the question of Chabahar, on October 28, 2025, as you are aware, the US Department of Treasury had issued a letter outlining the guidance on the conditional sanctions waiver, which is valid till April 26, 2026. We remain engaged with the US side in working out this arrangement,” Jaiswal said during the weekly media briefing.

The waiver allows India to continue operating the Shahid Beheshti Terminal at Chabahar through India Ports Global Limited (IPGL). If the waiver is not extended, India may have to withdraw or risk sanctions-related action, Indian media maintained.

A day earlier, The Economic Times reported that New Delhi’s withdrawal could result in the loss of $120 million already transferred to Iran, while government directors at IPGL resigned en masse and the company’s website was shut down.

The reports, citing unnamed sources, suggested India had no choice but to exit the project after US President Donald Trump imposed a 25% tariff on countries doing business with Tehran. Opposition leaders accused Prime Minister Narendra Modi of yielding to US pressure, with Congress spokesperson Pawan Khera calling it “a new low” in India’s foreign policy and questioning why India allowed “USA to arm-twist India".

Observers noted that India’s engagement with Chabahar remains strategically significant, with experts highlighting past concerns that IPGL was created primarily to acquire control of the port. India had assumed responsibility for developing Chabahar under a 10-year agreement with Iran in 2024, with Modi previously hailing the project as “a major strategic win.”