India Cuts Chabahar Port Project Funding

India has decided not to allocate any funds for the Iran===Chabahar Port project in its Union Budget 2026-27, a significant departure from previous years' annual outlays. This move comes amidst renewed US sanctions on Iran and the impending expiration of a six-month waiver granted to India for its involvement in the project. The Iran===Chabahar Port, jointly developed by India and Iran, is crucial for India's access to Afghanistan and Central Asia, bypassing Pakistan, and is an integral part of the International North–South Transport Corridor. India had previously committed investments including $120 million for equipment and a $250 million credit line for surrounding infrastructure. The decision reflects India's caution in navigating geopolitical pressures, particularly from the United States, which has threatened additional tariffs on countries trading with Iran. India is reportedly exploring options such as transferring its committed investment and creating a new entity to continue supporting the project.