India has secured a six-month exemption from United States sanctions for its operations at Iran’s Chabahar Port, the Ministry of External Affairs (MEA) confirmed on Thursday.

The decision provides a major relief for New Delhi’s regional trade and connectivity ambitions, allowing continued access to a strategic route that bypasses Pakistan.

According to the MEA, the United States granted India an exemption from sanctions under the Iran Freedom and Counter-Proliferation Act (IFCA), enabling the country to maintain its operations at the Chabahar Port along the Gulf of Oman. Officials said India remains in close contact with the United States to ensure stability in trade and regional projects.

The Chabahar Port holds significant strategic importance for India, offering direct maritime access to Afghanistan, Central Asia, and eastern Russia while bypassing Pakistan. It serves as a vital link in the International North-South Transport Corridor (INSTC), a multimodal trade route connecting India with Iran, Russia, and several Central Asian countries.

The waiver extension follows New Delhi’s active diplomatic engagement with Washington after the US had earlier revoked the long-standing exemption in September.

The revocation, first issued in 2018, was part of Washington’s “maximum pressure policy” aimed at isolating Iran. Following that move, India had said it was reviewing the possible implications of the decision.

India’s operations at Chabahar are seen as vital for both trade and humanitarian reasons. The port has previously been used to deliver essential supplies to Afghanistan, including 20,000 tonnes of wheat in 2023, and eco-friendly pesticides to Iran in 2021.

The relief also reinforces the long-term cooperation between New Delhi and Tehran. In May 2024, India signed a landmark 10-year agreement with Iran’s Port and Maritime Organisation to operate the Shahid Beheshti terminal at Chabahar.

The project, first proposed in 2003, has become a key part of India’s plan to improve trade links with Afghanistan, Central Asia, and other regions.

Several landlocked nations, including Uzbekistan, have shown interest in using the port to diversify trade routes. Russia, too, is reportedly exploring the port’s use through Central Asia to enhance its trade links with India and other Asian economies.

References: firstpost, business standard