India has officially confirmed an investment of USD 120 million in Iran’s strategically located Chabahar Port, marking a significant milestone in bilateral maritime and infrastructure cooperation. Iranian and regional media reports said the amount represents India’s direct capital commitment towards port infrastructure development under a long-term cooperation framework with Iran’s Ports and Maritime Organisation.
Iranian officials have stated that the Indian investment has been fully realised, with Indian entities actively involved in port operations and the procurement of essential equipment. Despite earlier logistical and diplomatic challenges, cooperation between the two countries at Chabahar continues as planned.
Located in Iran’s Sistan-Baluchestan province along the Gulf of Oman, Chabahar Port holds major strategic and commercial significance. For India, the port provides a direct maritime gateway to Afghanistan and Central Asia, bypassing Pakistan and enhancing regional trade connectivity.
The port is also a critical component of India’s broader strategy to strengthen economic engagement with landlocked Central Asian nations and to expand its footprint in the International North-South Transport Corridor (INSTC), aimed at improving multimodal connectivity between South Asia, the Middle East, and Eurasia.
However, the Chabahar project has faced geopolitical headwinds. In September 2025, the United States announced the withdrawal of special sanctions relief that had earlier allowed Indian entities to operate at the port without sanctions exposure, raising concerns over future investments and operational flexibility.
Despite these external pressures, officials in both New Delhi and Tehran have reiterated that Chabahar remains vital to their strategic and economic partnership. With India’s USD 120 million investment now formally affirmed, the port is expected to continue playing a growing role as a regional transit hub linking South Asia with Central Asia and beyond.
