The ongoing protests in Iran have raised concerns in India regarding the future of the Chabahar Port project, a key strategic investment worth nearly $500 million.
NEW DELHI – The situation in Iran has become increasingly chaotic, with protests erupting in over 100 cities across the country. As regime instability rises, India is closely monitoring the developments, particularly regarding its strategic investment in the Chabahar Port.
Indian officials have expressed concerns about the safety and continuity of operations at this critical port, where India has invested nearly $500 million. While there is currently no direct threat to the project itself, officials warn that escalating protests and potential regime changes could significantly delay its progress.
The Chabahar Port holds strategic importance for India, serving as a vital gateway to bypass Pakistan and access Afghanistan, Russia, Europe, and Central Asia. This port is integral to India’s Connect Central Asia policy, which aims to enhance trade with landlocked nations such as Uzbekistan, Turkmenistan, and Kazakhstan.
Moreover, the port is a key component of the International North-South Transport Corridor (INSTC), a 7,200-kilometer ship-rail-road network linking India to Iran, Russia, Europe, and the Caspian Sea. This corridor is expected to reduce transit times by nearly 40 percent and cut costs by around 30 percent.
However, the ongoing protests pose a risk of delaying the project’s completion, which could undermine India’s strategic advantages. A significant aspect of the INSTC is the Chabahar-Zahedan railway project, and unrest in the region could hinder rail connectivity, ultimately affecting the efficiency of the corridor.
New Delhi is particularly concerned that the unprecedented protests in Iran could disrupt cargo handling and infrastructure development at Chabahar. The protests have already led to internet blackouts and supply chain disruptions, making it crucial for normalcy to return to Iran for the project’s success.
The current unrest has created challenges for Iranian security agencies, with low morale reported among the ranks of the Islamic Revolutionary Guards (IRG) due to the escalating economic crisis. This environment has fostered insecurity among the labor class, who fear being targeted by protesters amid the turmoil.
India is also wary of potential moves by China during this period of instability. Historically, China has sought to expand its influence in countries experiencing unrest. The Chabahar Port is seen as a counter to China’s growing presence at the Gwadar Port in Pakistan, located just 170 kilometers away.
In addition to its economic implications, Chabahar is vital for India to monitor Chinese naval activity in the Arabian Sea and the Indian Ocean. Indian officials are hopeful that the situation in Iran will stabilize soon, preventing any adverse effects on their strategic investments. They are acutely aware that delays at Chabahar could hinder India’s long-term plans, especially as China continues to expand its operations in Gwadar.
The protests in Iran began on December 28, 2025, fueled by a deepening economic crisis and widespread frustration with the Islamic Republic government. Initially sparked by rising inflation, food prices, and the severe depreciation of the Iranian Rial, the protests have since evolved to include calls for regime change.
What started as demonstrations by shopkeepers has now expanded to include students and the general public, with protests spreading across more than 100 locations in Iran. The situation remains fluid, and the international community is watching closely as events unfold.
According to IANS, the implications of these protests extend beyond immediate concerns, potentially affecting regional dynamics and international relations in the coming months.