India-Iran Trade Relations: Navigating US Sanctions and Humanitarian Exports

India is carefully evaluating the US-imposed 25% tariff on countries doing business with Iran, as most of its exports to Tehran are humanitarian. The announcement's impact on trade, especially in food and pharmaceuticals, is crucial. India's exports to Iran represent a tiny fraction of its total trade volume.

India is scrutinizing the implications of a newly announced 25% tariff on countries trading with Iran, as declared by US President Donald Trump. Most of India's exports to Iran are of a humanitarian nature, placing significance on this announcement for future trade relations.

Commerce Secretary Rajesh Agrawal emphasized that while India's trading volume with Iran is relatively small, consisting primarily of humanitarian goods, it remains integral for exports such as food and pharmaceuticals. India's trade with Iran was valued at USD 1.68 billion for 2024-25, which includes USD 1.24 billion in exports.

The Federation of Indian Export Organisations has confirmed Indian compliance with existing sanctions, engaging in permissible trade. As stakeholders await the formal executive order, the potential impact of this tariff remains a critical concern for Indian exporters already dealing with hefty US tariffs.