India has effectively pulled back from Iran’s Chabahar port following the reimposition of U.S. sanctions. The move comes after India paid $120 million to Iran before the sanctions took effect. Iran can now use these funds to operate the port without India’s involvement.
The withdrawal was marked by the collective resignation of government representatives from the board of India Ports Global Limited (IPGL), the public-sector company responsible for Chabahar. Additionally, IPGL’s official website has been deactivated, signaling India’s operational exit.
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Indian media reports emphasize that India will no longer participate in Chabahar port development or operations. The decision has sparked strong criticism from opposition parties, particularly the Congress, which called the move a sign of weakness in foreign policy.
Congress leader Poonam Khera questioned why the Modi government allowed the U.S. to influence India’s strategic choices. She argued that stepping back under U.S. pressure undermines India’s diplomatic independence and regional influence.
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India had taken control of Chabahar port in 2024 under a 10-year agreement with Iran. The exit highlights the growing impact of U.S. sanctions on regional infrastructure and India-Iran cooperation.