India's trade and economic engagement with Iran remains limited and is unlikely to be significantly affected by the recent tariff measures announced by the United States, government sources said on Tuesday, following President Donald Trump’s decision to impose a 25 per cent tariff on countries trading with Iran.
Government sources told ANI that Iran does not feature among India’s top 50 global trading partners. In the last year, India’s trade with Iran stood at USD 1.6 billion, accounting for about 0.15 per cent of India’s total trade. They added that the trade value is expected to decline further in the coming financial year due to external economic factors.
The US has already imposed 50 per cent tariffs on India, among the highest in the world, including 25 per cent for Delhi’s purchases of Russian energy.
Here's why: A look at Iran's trading partners in numbers
In 2024, Iran’s total imports were estimated at around USD 68 billion. Its major import partners included the UAE with USD 21 billion, accounting for 30 per cent, China with USD 17 billion or 26 per cent, Turkiye with USD 11 billion or 16 per cent, and the European Union with USD 6 billion or 9 per cent. India’s share was only USD 1.2 billion, representing about 2.3 per cent.
Despite the developments, the Indian exporting community remains cautious but calm. Speaking earlier to ANI, Ajai Sahai, CEO and Director General of the Federation of Indian Export Organisations, said he was not unduly concerned, noting that Indian industry and banks engage with Iran only in goods that fall outside the scope of US OFAC sanctions.
Akshay Gupta, Head, Bulk Exports at KRBL, the parent company of India Gate rice, said in a statement that “Iran has been a key market for Indian basmati rice from an export perspective. Rice exporters have observed significant consumer demand in this region. When trade with Iran was fully open, KRBL exported approximately 250,000 tonnes of basmati rice.
However, over the years, sanctions and increased market restrictions have considerably impacted our business.”
Trump slaps tariffs on Iran's trading partners
US President Donald Trump announced the sweeping trade measure targeting countries that “continue to do business with Iran”, imposing a 25 per cent tariff on all their business dealings with the United States. In a post on Truth Social, Trump said the decision would be “immediately” in effect and that the “order is final and conclusive.”
Also read: Trump says Iran wants to negotiate with Washington as death toll in protests rises to 646
