Restrictions on Chabahar Port, where New Delhi has investments, could hamper regional connectivity, officials have argued

India has pledged continued support for its joint project with Iran at the Port of Chabahar, days after US President Donald Trump targeted the facility in new sanctions against Tehran. The Chabahar project is key for the region's economic development, New Delhi has said.

Speaking on Monday at an event to mark the 46th anniversary of the Islamic Revolution of Iran, Indian Foreign Ministry secretary Jaideep Mazumdar Mazumdar described regional connectivity as a "crucial" aspect of relations, according to the Times of India. He added that the development of the Chabahar deepwater port in southeastern Iran is a key example of the two countries' "shared vision for mutual benefit through connectivity." 

His remarks come days after Trump passed an executive order to exert "maximum economic pressure" on Iran, directing Secretary of State Marco Rubio and US Treasury Secretary Scott Bessent to "impose sanctions on the Iranian government, aiming to restrict its access to funds, including those generated through oil exports, ports, and related businesses." 

"The Secretary of State shall modify or rescind sanctions waivers, particularly those that provide Iran any degree of economic or financial relief, including those related to Iran's Chabahar port project," the order stated.

Chabahar Port was conceived as a strategic hub for the International North-South Transport Corridor, developed by India, Iran, and Russia as an alternative shipping route to the Suez Canal. The INSTC originates in Mumbai, traversing through Iran's Bandar Abbas, Bandar-e-Anzali, and Chabahar, before crossing the Caspian Sea to reach Astrakhan in southern Russia. It then connects to Moscow and St. Petersburg via rail and road links.  

In 2024, New Delhi and Tehran signed a contract that involves India equipping and operating the Shahid Beheshti terminal of the port over the next ten years, opening up opportunities for India to increase trade and commerce with Central Asia and Russia, as well as Afghanistan, bypassing Pakistan. As per the contract, India Global Ports Limited (IGPL) will take over the operations of the general cargo and container terminals at the Shahid Beheshti port, one of the two facilities at Chabahar.

After the Chabahar deal was announced, the administration of then-US President Joe Biden threatened India with sanctions, saying that anyone considering "business deals with Iran, they need to be aware of the potential risk of sanctions." Indian Foreign Minister Subrahmanyam Jaishankar responding by saying that the long-term agreement between India and Iran to operate Chabahar Port is "for everyone's benefit."

READ MORE: X suspends RT India account

Notably, the previous Trump administration had in 2018 exempted Chabahar from US sanctions, acknowledging its role in facilitating reconstruction efforts in Afghanistan.

An Indian government report recently noted a significant increase in maritime activity through the INSTC, with a 43% rise in vessel traffic and 34% growth in container traffic during the financial year 2023-24. The Iranian ambassador to India, Iraj Elahi, was quoted by the Times of India as hailing the strong partnership between Tehran and New Delhi and stating that economic ties are growing. "Cooperation through the International North-South Transport Corridor is another key example of the strong partnership between our countries," he said.