NEW DELHI, India — India could face fresh economic pressure after U.S. President Donald Trump announced a 25 percent tariff on any country that continues doing business with Iran, a move that may complicate New Delhi’s already strained trade relationship with Washington.
India is among Iran’s top five trading partners and is already contending with steep U.S. tariffs of up to 50 percent on certain exports. The new measure, aimed at tightening economic isolation of Tehran, could further affect Indian companies engaged in bilateral trade with Iran.
Official data show that India exported goods worth $1.24 billion to Iran and imported $440 million during the 2024–25 financial year, taking total bilateral trade to $1.68 billion. Indian exports to Iran primarily include rice, tea, sugar, pharmaceuticals, manmade staple fibers, electrical machinery, and artificial jewelry, while imports largely consist of dry fruits, organic and inorganic chemicals, and glassware.
“India and Iran are important trade partners,” according to information published by the Indian Embassy in Tehran, which notes that India has consistently ranked among Iran’s five largest trading partners in recent years.
Beyond trade, the two countries have maintained strategic cooperation, most notably through the development of the Shahid Beheshti Port at Chabahar. India and Iran signed a memorandum of understanding in 2015 to jointly develop the port, which New Delhi views as a critical gateway for access to Afghanistan and Central Asia, bypassing Pakistan for regional trade and connectivity.
India’s involvement at Chabahar recently received a boost after the United States extended a six-month sanctions waiver, effective October 29, allowing Indian operations at the port to continue until at least April next year. The extension was widely seen as a diplomatic win for New Delhi amid broader U.S. sanctions on Iran and Russia.
According to the Indian Embassy, India continues to work closely with Iran to develop Chabahar as a major regional and international hub for humanitarian and commercial cargo movement.
Industry experts caution that while China remains Iran’s largest trading partner, other countries with significant trade ties to Tehran — including India, the United Arab Emirates, and Turkey — could also be affected if Washington moves ahead with the proposed tariffs.
The announcement adds another layer of uncertainty for India as it seeks to balance strategic interests in the region with growing trade and geopolitical pressures from the United States. (Source: IANS)
