- India's trade with Iran is minimal, at around $1.6 billion last year
- Iran ranks outside India's top 50 trading partners with 0.15% trade volume
- Iran's largest suppliers include UAE, China, Turkiye, and the European Union
India's commercial exposure to Iran is marginal, and therefore it is unlikely to face any meaningful fallout from the latest US tariff action, government sources said on Tuesday, responding to President Donald Trump's decision to levy a 25 per cent tariff on countries trading with Tehran.
Officials noted that Iran does not rank among India's top 50 trading partners. Bilateral trade stood at around $1.6 billion last year, accounting for roughly 0.15 per cent of India's overall trade volume. According to the sources, this figure is expected to shrink further in the next financial year due to prevailing global economic pressures.
They pointed out that Iran's import basket itself is dominated by a small group of partners. In 2024, Iran imported goods worth nearly $68 billion, with the UAE emerging as the largest supplier at $21 billion (30 per cent), followed by China at $17 billion (26 per cent), Turkiye at $11 billion (16 per cent), and the European Union at $6 billion (9 per cent).
India's contribution to Iran's imports, by comparison, remains modest at about $1.2 billion, or just 2.3 per cent, the sources said.
The comments come after US President Donald Trump unveiled a broad trade measure aimed at nations that, in his words, "continue to do business with Iran", announcing a 25 per cent tariff on all their commercial transactions with the United States.
Making the announcement on Truth Social, Trump said the move would take effect without delay and leave no room for negotiation. "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.
