Will China Gain Control of Iran’s Chabahar Port? Did India Step Back or Play a Strategic Move? Experts Explain the Budget Omission

Tehran: The Indian government has strategically overlooked the Chabahar Port in Iran in its 2026 Union Budget. No allocation has been made for the Chabahar port project, which India had previously supported with an annual allocation of ₹100 crore. Experts are now analyzing the reasons behind this decision.

Geopolitical analyst Brahma Chelani commented on India’s strategy regarding Chabahar. According to him, the port is India’s only route to Afghanistan and Central Asia that bypasses Pakistan. With India seemingly stepping back, the opportunity for China to strengthen its presence—already established in Pakistan’s Gwadar Port—could increase. However, this move may also be part of a deliberate Indian strategy.

In a detailed post on social media, Chelani noted that while the budget did not allocate new funds, India had already transferred $20 million for the development of the Shahid Beheshti Terminal at Chabahar. “This existing funding means that technically, no new budget allocation was required,” he explained. “It also indicates that New Delhi is seeking a middle path with Washington regarding its operations at Chabahar.”

Strategic Maneuvering Amid U.S. Pressure

India is aware of the potential threat from China. The absence of a new budget allocation for 2026-27 could therefore be seen as a tactical pause rather than a retreat. This move comes amid pressure from the Trump administration, which last September withdrew a previously granted exemption to India for Chabahar without explanation. India has since been given a six-month temporary relief to continue operations until April 2026, after which it could face restrictions. Chelani suggests that India’s decision may also be aimed at negotiating with Washington while maintaining its strategic interests.

For years, India has been a key partner in developing Chabahar, located on Iran’s southern coast in the Sistan-Baluchestan province. The port plays a crucial role in India’s trade and strategic access to Afghanistan, Central Asia, and beyond.