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India's trade and economic engagement with Iran remains limited and is unlikely to be significantly impacted by recent tariff measures announced by the US, government sources said on Tuesday after President Donald Trump's announcement of a 25 per cent tariff on Iran's trading partners.
For India, Iran does not even figure in the top 50 global trading partners. Last year, India's trade with Iran was USD 1.6 billion, approximately 0.15 per cent of India's total trade, government sources said. They said India's trade value with Iran is expected to decline further in the coming Financial Year, given external economic factors. In 2024, Iran's total imports were about USD 68 billion, of which its leading import partners were the UAE (USD 21 billion accounting 30%), China (USD 17 billion accounting 26%), Turkiye (USD 11 billion accounting 16%), EU (USD 6 billion accounting 9%). India's share is only USD 1.2 billion, which accounts for only 2.3%, they said. Notably, the Indian exporting community remains watchful yet composed. Earlier speaking to ANI, Ajai Sahai, CEO & DG of the Federation of Indian Export Organisations (FIEO), said he is not unduly concerned about the statement, as Indian industry and banks deal only with Iran on goods that fall outside the scope of US OFAC sanctions. Akshay Gupta, Head- Bulk Exports, 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." US President Donald Trump had announced a 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 US. In a post on Truth Social, Trump said that the decision would be "immediately" in effect and that the "order is final and conclusive." "Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America. This Order is final and conclusive. Thank you for your attention to this matter!" Trump said in his post. (ANI)
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