In a candid assessment of the cooling relations between New Delhi and Tehran, Iranian Foreign Minister Abbas Araghchi has described India's decision to zero out funding for the Chabahar port project this year as a "disappointment" for both nations. Speaking to the media, Araghchi reminded New Delhi of Prime Minister Modi’s own past description of the site as a "golden gate" designed to link the Indian Ocean to Central Asia, the Caucasus, and Europe.
The project, which sits in Iran’s Sistan-Balochistan province, has long been the crown jewel of India’s regional strategy, intended to bypass Pakistan and provide a direct trade route to landlocked Central Asian markets. However, for the first time since a major development deal was inked in 2024, the latest Union Budget failed to allocate the usual ₹100 crore typically earmarked for the port’s progress.
The funding freeze arrives at a precarious moment for Indian diplomacy. While the port serves as a vital counterweight to China’s influence at Pakistan’s Gwadar port, it has been caught in the crosshairs of renewed tensions between Washington and Tehran. Although the United States granted India a six-month sanctions waiver last September to continue work on Chabahar, that exemption is due to expire on April 26.
The Ministry of External Affairs has confirmed it is currently in talks with the US to navigate the looming deadline, but Araghchi’s comments suggest that the lack of financial commitment is already being felt in Tehran. "I hope that one day we can witness the full development of this port," the Iranian minister remarked, highlighting a project that currently appears to be in a state of diplomatic limbo.
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