Iran’s Foreign Minister Abbas Aragchi has expressed disappointment over the lack of funding for Chabahar Port in India’s new budget. He said that this decision is disappointing for both India and Iran. However, Aragchi’s comments suggest that Iran still wants to work with India and hopes to take the port forward.

Not giving budget for ‘Golden Gate’ disappointing: Aragchi

When Aragchi was asked in a TV interview whether he was disappointed by India not including Chabahar in this year’s budget, Aragchi replied, ‘I think it is disappointing for both Iran and India.’ He described Chabahar Port as the ‘Golden Gate’, as Prime Minister Narendra Modi had said earlier.

According to Aragchi, this port connects the Indian Ocean region with Central Asia, Caucasus and Europe. If it is fully developed, it can become the best transit route for India to reach Central Asia, Caucasus and Europe through Iran. He expressed hope that one day this port will be fully developed.

‘No amount’ for Chabahar in general budget

For the first time, no funds were kept for Chabahar Port in the Union Budget 2026-27. This decision came at a time when tension between America and Iran has increased. In September 2025, America imposed strict sanctions on Iran, but India was given a six-month exemption, which is ending in April 2026.

India still remains the major development partner of the port. External Affairs Ministry spokesperson Randhir Jaiswal had said last month that India is talking with America on issues related to Chabahar.

India will sideline Pakistan

Chabahar Port is located in Sistan-Baluchistan, the south-eastern province of Iran. India and Iran have jointly developed it so that a direct trade and transit route can be created to Afghanistan and Central Asia without passing through Pakistan. This project increases India’s regional connectivity, promotes trade to landlocked Central Asian countries and counters China’s influence on Pakistan’s Gwadar Port.

In 2024, a big deal was signed between India and Iran, under which India took part in the development of the port. In the previous budgets, India has been allocating around Rs 100 crore every year.

Why is Chabahar Port important for India?

Chabahar is very important for India’s strategic position. This project not only increases trade but also gives India an alternative route to reach Central Asia. However, due to US sanctions and geopolitical pressure, India has stopped funding in the budget, which shows a kind of balanced approach.

Iran’s ambassador had also earlier said that he is ready to work with India on Chabahar. No official comment has come from India yet, but this issue remains a challenge in the relations between the two countries. Experts believe that in future, the future of Chabahar will be decided based on the status of sanctions and talks with America.