As US tariff risk looms, officers say India-Iran commerce ‘minuscule’| Enterprise Information

NEW DELHI: India’s commerce with Iran is minuscule and primarily entails provides of meals and prescribed drugs important for inflation-ravaged Iranian residents, folks conscious of the matter mentioned, including that any implication of recent American tariffs for many who export to Iran will rely upon the specifics of Washington’s selections.

A freight practice carrying cargo containers rides alongside a railway observe in Ajmer on August 26 (AFP FILE)

US President Donald Trump mentioned in a social media put up on Monday that “efficient instantly, any Nation doing enterprise with the Islamic Republic of Iran pays a Tariff of 25% on any and all enterprise being achieved with america of America. This Order is remaining and conclusive…”

His feedback had been in response to a crackdown on protests by the regime in Tehran, which has reportedly led to the deaths of two,000 folks. Observe newest updates on Iran protests right here

India’s exterior affairs minister S. Jaishankar individually mentioned he mentioned commerce, essential minerals, nuclear cooperation, defence and power together with his US counterpart Marco Rubio throughout a cellphone name on Tuesday. “Simply concluded a great dialog with @SecRubio. Mentioned commerce, essential minerals, nuclear cooperation, defence and power. Agreed to stay in contact on these and different points,” Jaishankar wrote in a put up on X.

Individuals conversant in the matter, who requested to not be named, mentioned the specifics of any US government order over such a tariff would make clear the standing of the majority of India’s exports to Iran, which total make for a minuscule proportion of India’s total merchandise exports. If any extra levies are to kick in, they might apply on exports to America, the place Indian items are already topic to 50% duties, together with a 25% punitive levy over Russian power purchases.

Certainly one of these folks mentioned the levies over Iran are anticipated to have “minimal impression” on India. Iran doesn’t determine amongst India’s high 50 international buying and selling companions. India’s complete commerce with Iran throughout 2024-25 was value $1.68 billion, or about 0.15% of the nation’s complete commerce, with imports from Iran amounting to $0.44 billion. “India’s commerce worth with Iran is predicted to go down additional within the present monetary yr as a result of exterior financial elements,” this individual mentioned.

India stopped importing oil from Iran—as soon as the primary commodity in two-way commerce—in Could 2019 due to sanctions imposed by Trump in his first time period. This resulted in two-way commerce plummeting from $17.03 billion in 2018-19 to the present low ranges.

India’s exports to Iran are progressively falling, official commerce knowledge reveals. Within the first eight months of the present monetary yr (April-November 2025), exports fell over 6% to $764.51 million in comparison with $813.37 million in the identical interval the earlier yr. Rice constituted the majority of those shipments, value $471 million.

Key gadgets exported to Iran in April-November 2025 included buffalo meat ($7.99 million), bulk medication ($4.38 million), espresso ($4.43 million), drug formulations ($41.93 million), important oil ($12.11 million), contemporary fruits ($37.65 million), groundnuts ($8.42 million), pulses ($22.94 million), basmati rice ($468.10 million), non-basmati rice ($2.52 million), spices ($21.73 million), sugar ($12.84 million) and tea ($38.84 million).

Imports from Iran fell to $224.42 million in April-November 2025, an 11.77% dip in comparison with $254.35 million within the year-ago interval. Key gadgets India imported throughout this era included contemporary fruits ($89.21 million) and a few non-sanctioned petroleum merchandise ($104.51 million).

“Imports are the one method to proceed supplying necessities reminiscent of meals gadgets and medicines to Iran due to cost issues. Indian exports are anticipated to fall additional sharply as consumers are unable to buy Indian items as a result of rising inflation in Iran. Widespread Iranians are quick dropping their buying energy. A number of Indian exporters have stopped exporting items with out receiving outdated dues,” a second individual quoted above mentioned.

A 3rd individual identified that “China, Iraq, the UAE, Turkey, Afghanistan and Pakistan are the main commerce companions of Iran. In addition they have pursuits in Iranian crude oil.”

Queries despatched to the commerce ministry didn’t elicit any response.

Commenting on the extra 25% tariff, the Federation of Indian Export Organisations (FIEO) mentioned India had a complete commerce of $1.68 billion with Iran in 2024–25, which included $1.24 billion in exports primarily from the farm sector. “As everyone knows, the commerce with Iran is exterior the sanctions imposed by the US, given the humanitarian nature of most of those merchandise,” it mentioned in an announcement.

“Subsequently, FIEO is of the view that the impression of a further 25% tariff imposed by the US on any nation doing enterprise with Iran may have nearly no impression on India. Nevertheless, we foresee a a lot bigger impression on Iranian foreign money, which is now at its historic low, and should even go down additional, impacting each Iranian exports and imports.”

Ajay Sahai, director normal and CEO of FIEO, expressed optimism following US ambassador Sergio Gor’s assertion. “He’s a detailed aide of President Trump. He’s right here to strengthen the India-US relations in any respect ranges, together with commerce,” he mentioned. Gor on Monday underscored the significance of the India-US partnership and mentioned each companions are actively engaged in concluding a bilateral commerce deal.