Strategic infrastructure projects like Chabahar always carry bigger geopolitical weight—this India's withdrawal amid renewed Trump sanctions feels like a reluctant but calculated compromise to safeguard broader US ties at the cost of regional connectivity ambitions. The 10-year agreement signed in 2024 to manage and develop the port plus rail link to Zahedan on the Afghan border offered a vital maritime gateway from Mumbai to Central Asia, bypassing Pakistan and countering China's Gwadar port in the Belt and Road Initiative.

Operations began under a 2018 trilateral MoU with Iran and Afghanistan, positioning Chabahar as Iran's only oceanic port outside the Strait of Hormuz. But Trump's reimposition of sanctions in September 2025 came with an unconditional six-month waiver for wind-down until April 26, 2026, prompting India to quietly liquidate its $120 million investments. Opposition Congress accused Modi of "surrender," questioning lost funds and policy flip-flops; BJP countered as misinformation, noting ongoing US discussions.

Experts like former ambassador Kanwal Sibal called the sanctions "geopolitically senseless," hurting India more than Iran while benefiting China-Pakistan axis; analyst Sushant Sareen termed it compulsion with no viable choice. MEA clarified continued operations under waiver period. Alternative routes remain limited, dimming INSTC corridor potential linking India to Russia Europe via Iran. In my view, pragmatic amid Trump's tariff pressures and "America First" stance, but a clear strategic setback—losing hard-won access undermines Act East and neighborhood policies. Hoping waiver extensions or creative exemptions preserve some gains without full exit; balancing US partnership with independent regional access remains crucial for India's rising global role and connectivity goals in a multipolar world.