The Ministry of External Affairs (MEA) announced that American sanctions will not apply to India’s Chabahar Port in Iran, effective from October 29. This comes as a relief for India, which signed a 10-year deal with Iran last year. Under the agreement, India Ports Global Ltd (IPGL) will invest $370 million to develop the port — a key gateway to the Indian Ocean and a lifeline for India’s humanitarian aid to Afghanistan.
The exemption follows intense India-US discussions as both countries move closer to finalising a major trade deal. MEA spokesperson Randhir Jaiswal confirmed that talks with the US continue and directed further queries to the Commerce Ministry.
The US had earlier exempted India from Iran sanctions in 2018 for the same project, recognising Chabahar’s strategic importance.
India is also reviewing the potential effects of new US sanctions on Russian oil firms. The MEA said India will continue sourcing affordable energy from multiple countries to meet the needs of its 1.4 billion citizens.
Commerce Minister Piyush Goyal added that India and the US are “very close” to a fair trade deal but emphasized that India will not rush into any agreement.
