How much trade does India conduct with Iran? Know how Trump’s announcement of an additional 25% tariff will affect India
What impact will it have on India after Trump announces 25% tariffs on Iran? Know details: The United States has disrupted global trade by using tariffs as a pressure tool. US President Donald Trump has announced an additional 25 percent tariff on countries that trade with Iran. He said the decision takes effect immediately and is final. This move raises concerns for countries that have economic ties with Iran, including India.
India–Iran Trade Overview: India and Iran have a long and strategic trade relationship. According to the Ministry of Commerce, India–Iran trade in 2024–25 stood at about $1.68 billion. India exported goods worth $1.24 billion, while imports from Iran were $0.44 billion. This gave India a trade surplus of around $0.80 billion.
However, trade has fallen sharply over the years. In 2018–19, bilateral trade reached nearly $17 billion. After the US imposed sanctions on Iran, trade volumes declined significantly.
What India Imports and Exports: India imports petroleum gas, petroleum coke, chemicals, dry fruits, apples, and bitumen from Iran.
India exports basmati rice, tea, sugar, bananas, medicines, pulses, and meat products to Iran.
Iran remains an important market for Indian basmati rice, which supports millions of Indian farmers.
Possible Impact on India: Trump’s tariff does not directly target Iran. Instead, it targets countries that trade with Iran by taxing their exports to the US. India already faces US pressure over its oil imports from Russia. If the US applies the Iran-related tariff to India, Indian exports to the US may become more expensive, hurting exporters.
Strategic Challenges for India: The impact may remain limited because India’s trade with Iran is already restricted due to existing US sanctions. India also conducts much of this trade indirectly.
At the same time, India continues to value strategic projects like Chabahar Port, which helps India access Central Asia and Afghanistan.
Trump’s tariff announcement creates a new challenge for India. However, India has faced similar pressures before. It will likely continue to balance its strategic interests with global trade realities while protecting its economic priorities.
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