What happened
On September 19, 2025 in a move that could affect India’s strategic engagement with Afghanistan and Central Asia, the United States announced that the sanctions waiver for India’s development of Iran’s Chabahar Port will lapse on September 29, 2025. The waiver, first granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA), had allowed India to operate and modernise Chabahar without facing US sanctions.
Why it matters to India
Chabahar Port is a key strategic asset for India, enabling trade and humanitarian access to Afghanistan while bypassing Pakistan. The waiver’s revocation complicates India’s regional connectivity plans, its outreach to Afghanistan, and its broader Central Asia strategy. Strategically, Chabahar counters Pakistan’s Gwadar Port and supports India’s economic and diplomatic interests in West Asia.