Context:

Recently, India has obtained a six-month waiver (exemption) from U.S. sanctions for its activities at the Chabahar Port in Iran. This development comes amid the U.S.’s decision to revoke the earlier waiver (granted in 2018) under the Iran Freedom and Counter‑Proliferation Act (IFCA), as part of its “maximum pressure” campaign against Iran.

Background

The Chabahar Port (in Iran’s Sistan-Baluchestan province) is India’s strategic gateway to Afghanistan, Central Asia and even potentially Eurasia—it bypasses Pakistan and China-linked routes.

·        India signed a 10-year agreement (May 2024) with Iran for India Ports Global Limited (IPGL) to operate the Shahid Beheshti terminal, committing investment.

·        Since 2018, the U.S. had provided an exception (waiver) for India’s participation in Chabahar under IFCA, recognizing its connectivity & humanitarian dimension.

·        On 16 Sept 2025 the U.S. announced the revocation of this waiver effective 29 Sept, warning that entities involved may face sanctions under IFCA.

·       After diplomatic engagement, India secured a further six-month exemption from sanctions (from late Oct 2025) enabling operations.

Significance

• The waiver safeguards India’s investment and operations at Chabahar, thereby protecting its strategic connectivity corridor to Afghanistan & Central Asia.
• It helps maintain the momentum on the International North‐South Transport Corridor (INSTC) and reduces reliance on Pakistan-transit routes.
• The move signals India’s ability to navigate complex diplomacy, balancing its ties with the U.S., Iran, and regional connectivity goals.
• For the U.S., granting the waiver underlines its recognition of India’s role even while pursuing sanctions on Iran, reflecting the flexibility in its sanctions policy.

About INSTC:

 The International North–South Transport Corridor (INSTC) is a large‐scale multimodal transport network (sea + rail + road) aimed at connecting India, Iran and Russia (and via them, Central Asia and Europe).

·        The agreement for INSTC was signed by St. Petersburg on 12 September 2000 between India, Iran and Russia; it came into force on 16 May 2002.

·        The corridor spans about 7,200 km (some sources) linking the Indian Ocean through the Persian Gulf, the Caspian Sea and onward to northern Europe via Russia.

Conclusion

The six-month U.S. sanctions waiver is a significant diplomatic win for India, protecting a critical strategic investment in the Chabahar Port and conserving its regional connectivity ambitions. However, this is a temporary relief, and the real test lies ahead in building commercial viability, reducing sanction risk, and forging durable institutional mechanisms to safeguard India’s interests.