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Wednesday, July 15, 2026

Bharat’s retreat from Chabahar will benefit China and hurt American interests

“India’s retreat from Chabahar will benefit China and hurt American interests”, First Post, May 14, 26

“With the US sanctions waiver for Iran’s Chabahar Port expiring on April 26, 2026, India finds itself at a strategic crossroads.

Chabahar has always carried significance beyond its commercial value. For India, it offered a rare geopolitical workaround: direct access to Afghanistan and Central Asia without relying on Pakistan. Anchored in agreements dating back to 2003 and reinforced by the 2024 ten-year operational deal, the port was meant to serve as a critical node in the International North-South Transport Corridor (INSTC). Investments in port infrastructure, combined with plans for rail connectivity to Zahedan, were designed to integrate India into Eurasian trade routes while strengthening its strategic footprint. Even limited operational success, such as humanitarian shipments to Afghanistan, demonstrated its potential as a viable alternative to existing corridors.

What has changed is not the logic behind Chabahar, but the environment in which it operates. The expiration of the US waiver removes the legal and financial space that allowed India to balance its Iran engagement with its broader alignment with Washington. Secondary sanctions, by design, extend beyond direct actors and impose real costs on any entity connected to Iran’s economy. For India, this risk is not theoretical. Exposure could affect banking channels, trade flows, and even broader economic ties with the United States. In that context, the decision to dilute operational control is a pragmatic response to systemic pressure rather than a shift in strategic intent…….”

Read full article at firstpost.com

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