Was India forced to retreat? What’s at stake after US’ intervention?

There were reports that India may withdraw from Iran’s Chabahar port project

The US has reportedly dragged India into the affair since threatening to intervene in the violence and crackdown on protesters in Iran, with some reports suggesting that it is pressuring India to “withdraw” from Iran’s Chabahar port. This situation led to a political showdown within the country. “India’s tumultuous decade-long involvement in the development of Iran’s Chabahar port collapsed after US President Donald Trump said on January 12 that any country doing business with the Persian Gulf nation would face a 25% tariff on all business with the US,” according to a report in a leading financial newspaper on Thursday (January 15).

Responding to the reports, the Congress allegedly accused “Prime Minister Narendra Modi” of “yielding to US President Donald Trump by compromising an important national interest”. The BJP responded strongly, calling the charge “pure fiction” and in turn accused the Congress of peddling lies. The ruling party referred to a video prepared by Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal to clarify the government’s stand on the issue.

A day after such a report was published, the MEA made it clear that India did not halt its activities in Chabahar by April 26, 2026 due to a valid exemption from US sanctions. MEA also said that the country is in constant contact with Washington DC to further expand and operationalize the regulation.

However, experts dispute both the idea of ​​an “exit” and the logic behind sanctioning a project that undermines China-Pakistan strategic advantage by acting as a toll gate against the Gwadar Port in Balochistan. Did India have to withdraw from Chabahar? And if so, how significant might this regression be?

What’s in Iran’s Chabahar port?

News of India’s Chabahar port project made the rounds following a report in The Economic Times, which stated that India was considering a strategic withdrawal after the US sanctions pressure on Iran strengthened. US sanctions in January against organizations trading with Iran once again raised questions about India’s Chabahar port investments.

The report states that the USA has imposed sanctions on India’s Chabahar project as of September 2025. However, no action was taken against India as it was given time to complete all its operations from here within the next six months.

“Of course, the US has disrupted India’s strategic game by reimposing sanctions on the port from September 29, 2025,” the ET report said. It was also stated that Iran’s new sanctions exemption for the Chabahar port will expire in April 2026. The news stated that the sanctions raised questions about India’s long-term operations in the Chabahar port.

How will India benefit from Chabahar port?

Due to the sanctions imposed by the USA on Iran for a long time, India had to operate carefully at the Chabahar port in the Sistan-Baluchistan province in southeastern Iran. The report highlights India at a time when the US is focusing on Iran. This has led to discussions about whether India will need to forcibly withdraw its operations there.

What makes Chabahar important for India?

-It is located just outside the Strait of Hormuz, a major global energy bottleneck.

-For India, the port is strategically very useful as it offers a direct sea route to Afghanistan and Central Asia without bypassing Pakistan.

– It is also an important node of the International North-South Transport Corridor (INSTC), which connects Mumbai to Russia and Europe via Iran.

-In addition to being regionally strategic, the port is only 170 km away from Gwadar in Pakistan, which is part of China’s Belt and Road Initiative.

-Therefore, Chabahar has long been seen as India’s defense against the China-Pakistan axis in the Arabian Sea and the Western Indian Ocean.