'Iran Has Good Relation With India, We Respect India's Decision': Envoy Reacts After Chabahar Port Budget Slashed To Zero

New Delhi: Iranian Ambassador To India Mohammad Fathali, in an exclusive interview with Republic TV, reacted to India cutting off allocation for the Chabahar Port in the recently-announced Union Budget. He stated that Iran has good relations with India and respect its decision to manage through US sanctions.

“We have a good relation with India and believe that we will have a good relation with India in the future,” Fathali said. Further, he stressed on the importance of the the geographical location to the post. He said many countries need the port for access into Central Asian and Afghanistan.

Positioned at the entrance of the Gulf of Oman, Chabahar serves as Iran’s premier deepwater terminal, providing the nation with unhindered access to international shipping lanes.

Geographically, it sits just west of the Pakistan-Iran border, acting as a direct mirror to Pakistan's Gwadar port located to the east. Since Gwadar was built by China as a cornerstone of the Belt and Road Initiative (BRI), Chabahar functions as much more than a commercial hub, it is India’s strategic counterweight in the regional power struggle.

The Union Budget of India for financial year 2026-2027 has not allotted anything for the Chabahar Port. This is in sharp contrast to Budget 2025-26, in which the grant to the strategic connectivity project located in Iran’s Sistan-Balochistan province along its southern coast was increased from Rs 100 crore to Rs 400 crore.

This comes after US President Donald Trump intensified sanctions and military pressure on Tehran.

The ambassador also stated that Iran and US are positive about the ongoing negotiations to diffuse tensions between the two countries in Oman.

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