India Iran Trade Relations: The impact of increasing tension between America and Iran is not going to be limited to just the two countries. If restrictions on trade with Iran become more stringent due to Trump’s tariffs and strict policies, then its impact can be seen on other countries including India.

Especially countries like India, which are already facing 50 percent American tariff. This may become a new challenge with the new decree. This is not only likely to upset the trade balance. Rather, energy, import-export and diplomatic relations may also be affected. Let us know about the trade relations between India and Iran…

What do the figures say?

According to information received from media reports, organic chemicals have the largest share in exports from India to Iran. Whose price is 512.92 million dollars. After this come agricultural products like fruits, nuts, peels of citrus fruits and melons. Whose exports have been worth 311.60 million dollars.

At the same time, India imports about 86.48 million dollars of mineral fuel, oil and distillation related products from Iran. However, the impact of US sanctions on India-Iran trade relations is clearly visible. While trade between the two countries was $17.03 billion in 2018-19, it declined to $4.77 billion in 2019-20 and by 2025, this figure was reduced to just $1.68 billion. That means overall there was a huge decline in these figures.

India can be harmed not only by tariffs but also by this factor

If distance arises between India and Iran due to American pressure and other reasons. So its impact will not be limited to business only. Iran is an important transit route for India. Through which Indian trade has access to Russia, Central Asia and Europe. India largely depends on Iranian routes for connectivity with these areas, so any disruption can have far-reaching effects.

Chabahar port of Iran has special importance for India. Through this, business can be done directly with Afghanistan and Central Asian countries and there is no need to go through Pakistan. Along with this, the International North-South Transport Corridor INSTC also passes through Iran, which connects India with Russia and European countries.

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US Iran Trade Tariff: America has warned of imposing 25 percent additional tariff on countries doing business with Iran. Due to which there has been a stir in the business world globally. This step may affect countries like Brazil, China as well as India.

This can have a deep impact on the trade relations between India and Iran. Due to America’s tariff decision, India may have to take steps to balance its imports and exports. Let us know, how are the trade relations between the two countries?

75 percent tariff may be imposed on India

Iran has been an important trade partner of India for a long time. But now America has announced to impose 25 percent additional tariff on countries doing business with Iran. Due to which its impact can be seen on India also.

The new tariff is in addition to the 50 percent tariff already imposed by the US. This means that overall there may be a possibility of up to 75 percent trade tariff being implemented for India.

These things are traded between India and Iran

India has been included in the top five trading partner countries of Iran. The major products sent from India to Iran include Basmati rice, tea, sugar, fresh fruits, medicines, cashew nuts, peanuts, pulses and other agricultural and food items.

On the other hand, India imports products like methanol, petroleum bitumen used in road construction, apples, LPG, dry dates and almonds from Iran.

India-Iran trade statistics

Talking about the trade figures between the two countries, the total trade between India and Iran in the financial year 2022-23 has been $2.33 billion. Which shows an increase of about 22 percent compared to a year ago. During this period, India exported $1.66 billion to Iran. Whereas India’s import from Iran stood at $672.12 million.

Meanwhile, between April 2023 and July 2023, the total trade between the two countries was recorded at $660.70 million. In which India’s export was 455.64 million dollars and import was 205.14 million dollars.

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