Iran Protests Raise Concerns for India's Strategic Investments

The recent protests in Iran have escalated, affecting over 100 cities and raising concerns for India's strategic investments in the Chabahar Port. With an investment of nearly $500 million, India is closely monitoring the situation as regime instability poses risks to operational continuity. The protests, initially sparked by economic grievances, have evolved into calls for regime change, potentially delaying critical infrastructure projects. As India navigates these challenges, the implications for regional trade and security are significant, particularly in light of China's growing influence in the region. This article delves into the complexities of the situation and its potential impact on India's long-term strategic goals.

By Narendra Chaudhary Jan 10, 2026, 13:52 IST

Escalating Unrest in Iran

As of January 10, the situation in Iran has deteriorated significantly, with protests erupting in more than 100 cities. India is closely monitoring these developments due to the increasing instability of the Iranian regime, which poses a threat to India's strategic investments, particularly in the Chabahar Port.

Officials in New Delhi have expressed concerns regarding the safety and operational continuity at this vital port, where India has invested approximately $500 million. While there is currently no direct threat to the project, the potential for intensified protests and possible regime change could lead to significant delays, according to an official.

The Chabahar Port serves as a crucial link for India, allowing access to Afghanistan, Russia, Europe, and Central Asia while circumventing Pakistan. This port is integral to India's Connect Central Asia policy and is expected to enhance trade with landlocked nations like Uzbekistan, Turkmenistan, and Kazakhstan.

Additionally, the port is a key component of the International North-South Transport Corridor (INSTC), a 7,200 km network of ship, rail, and road that connects India to Iran, Russia, Europe, and the Caspian Sea. This corridor is designed to reduce transit times by nearly 40% and cut costs by around 30%.

The ongoing protests are anticipated to delay the project's completion, which could undermine India's strategic advantages. A significant aspect of the INSTC is the Chabahar–Zahedan railway project, and the current unrest may hinder rail connectivity, ultimately affecting the corridor's efficiency.

New Delhi is increasingly concerned that the unprecedented protests in Iran could disrupt cargo handling and infrastructure development at Chabahar. The protests have already resulted in internet blackouts and supply chain disruptions, impacting the project and emphasizing the need for a return to normalcy in Iran.

The situation has become a challenge for Iranian security agencies, with low morale among the ranks of the Islamic Revolutionary Guards (IRG) due to the worsening economic crisis. This has created 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. China has a history of capitalizing on such situations, and Chabahar serves as a counter to China's expanding influence at Gwadar Port in Pakistan, located just 170 km away.

The Chabahar Port is vital for India as it allows for monitoring of Chinese naval activities in the Arabian Sea and the Indian Ocean. India hopes for a swift resolution to the unrest in Iran to protect its strategic investments. Additionally, India remains cautious of China's significant developments in Gwadar, as delays at Chabahar could hinder India's long-term strategic objectives.

Mass protests began in Iran on December 28, 2025, fueled by a deepening economic crisis and widespread dissatisfaction with the Islamic Republic Government. Initially sparked by rising inflation and food prices, the protests have evolved to include calls for regime change.

What started with shopkeepers has now expanded to include students and the general populace, with protests spreading to over 100 cities across Iran.