India Monitoring Impact of US Tariff Announcement on Iran-Linked Trade
India on Thursday said its exports to Iran are largely humanitarian in nature and that it is awaiting details of a US executive order before assessing the implications of the proposed 25 percent tariff announced by US President Donald Trump on countries doing business with Tehran.Earlier this week, the US President said in a social media post that any country conducting business with Iran would face a 25 percent tariff on all trade with the United States, with immediate effect. Indian authorities said the specific contours of the move would become clear only after the formal executive order is issued.
Limited and Humanitarian Trade Exposure
Commerce Secretary Rajesh Agrawal said India has limited trade exposure to Iran, with exports primarily focused on humanitarian goods and services.He noted that India is closely examining the announcement and will take a considered view once the executive order is formally notified.
Exporters Highlight Compliance and Trade Composition
The Federation of Indian Export Organisations said Indian companies and banks are engaged only in permitted humanitarian trade with Iran, largely involving food items and pharmaceuticals.India’s total trade with Iran stood at USD 1.68 billion in 2024-25. This included USD 1.24 billion in exports, mainly from the agricultural and pharmaceutical segments. Imports from Iran during the year were valued at USD 441.83 million.
Exports to Iran accounted for just 0.28 percent of India’s total merchandise shipments of USD 437 billion in 2024-25.
Key Export and Import Products
India’s major exports to Iran include cereals, animal fodder, tea and coffee, spices, fruits and vegetables, and pharmaceutical products. On the import side, key items include dry fruits, inorganic and organic chemicals, and glassware.Despite the limited exposure, exporters are closely tracking the situation, especially as they continue to face pressure from the steep 50 percent tariffs already imposed by the US on certain trade flows.
Chabahar Port Remains Strategic to Bilateral Ties
A significant pillar of India Iran relations is the joint development of the Chabahar port in Iran’s Sistan Balochistan province. The port is central to India’s efforts to enhance regional connectivity and strengthen trade links with Iran and beyond.Recent Trade Trends
In 2024-25, India’s merchandise exports to Iran rose 1.55 percent to USD 1.24 billion, while imports declined sharply by 29.32 percent to USD 441.83 million. Authorities said these trends reflect both geopolitical factors and long standing constraints on bilateral trade.India said it will continue to review the situation as more clarity emerges from the US on the proposed tariff framework.
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