What’s Happening in Iran? Protests Threaten India’s Strategic Chabahar Port Investment

Protests in Iran have erupted across more than 100 cities, raising concerns for India's $500 million investment in the Chabahar Port. As regime instability grows, officials worry about potential delays in operations and the broader implications for regional trade. The port is crucial for bypassing Pakistan and enhancing trade with Central Asia. With the unrest affecting supply chains and internet access, India is keen on restoring normalcy to protect its strategic interests. The situation is further complicated by China's increasing influence in the region, particularly at Gwadar Port. As protests evolve from economic grievances to calls for regime change, the future of Chabahar hangs in the balance.

By Narendra Chaudhary Jan 10, 2026, 12:35 IST

Protests Erupt Across Iran

The situation in Iran has escalated dramatically, with protests now occurring in over 100 cities. India is closely monitoring these developments as instability within the Iranian regime poses a potential threat to its significant investment in the Chabahar Port.

Officials in New Delhi express concern 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.

Chabahar Port holds strategic importance for India, serving as a crucial link to bypass Pakistan for access to Afghanistan, Russia, Europe, and Central Asia. 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 could hinder the project's completion, which would negatively impact India's strategic interests. A significant aspect of the INSTC is the Chabahar–Zahedan railway project, and unrest could delay rail connectivity, ultimately affecting the corridor's efficiency.

New Delhi is increasingly concerned that the unprecedented protests in Iran may disrupt cargo handling and infrastructure development at Chabahar. The protests have already resulted in internet blackouts and supply chain interruptions, which are detrimental to the project. Therefore, restoring normalcy in Iran is crucial for India.

The current unrest has posed a significant challenge for Iranian security forces. The morale among lower-ranking members of the Islamic Revolutionary Guards (IRG) is reportedly low due to the worsening economic situation, leading to insecurity among the labor class who fear being targeted by protesters.

India is also wary of potential moves by China during this period of instability. Historically, China has capitalized on such situations. Chabahar serves as a counterbalance to China's expanding influence at Gwadar Port in Pakistan, located just 170 km away.

For India, Chabahar is vital for monitoring 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, the growing Chinese presence in Gwadar raises concerns that delays at Chabahar could hinder India's long-term plans.

Mass protests began on December 28, 2025, fueled by a deepening economic crisis and 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, spreading from a few cities to over 100 locations across Iran.