Is Trade with Iran Primarily Humanitarian?
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Synopsis
India is navigating the complexities of its trade relationship with Iran, especially in light of the recent 25% tariff proposed by the US. With a focus on humanitarian exports, the Indian government is awaiting further clarity before making definitive assessments. Explore the implications and the current state of trade between these nations.
Key Takeaways
- India’s exports to Iran are focused on humanitarian goods.
- The US has imposed a 25% tariff on trade with Iran.
- Indian officials are awaiting clarity on the US executive order.
- Previous sanctions have already reduced trade levels significantly.
- India’s trade with Iran mainly involves agricultural products.
New Delhi, Jan 15 (NationPress) The Commerce Secretary Rajesh Agrawal stated that a significant portion of India’s exports to Iran is primarily humanitarian. The Indian government is currently awaiting the comprehensive US executive order to evaluate the potential effects of the 25% tariff introduced by US President Donald Trump on all trade with the US. This announcement came via a social media post on Monday, indicating that any nation engaging in trade with Iran would incur this tariff immediately.
Indian officials are still seeking clarity regarding this declaration. The Commerce Secretary emphasized that India’s trade with Iran is limited, focusing predominantly on humanitarian goods.
He reiterated that the government is in the process of analyzing the announcement and is looking forward to the official executive order to grasp its ramifications.
According to the Federation of Indian Export Organisations, Indian businesses and financial institutions are fully adhering to the sanctions imposed by the US Office of Foreign Assets Control. The organization noted that trade with Iran is confined to allowed humanitarian items, chiefly food products and pharmaceuticals.
Previous sanctions issued by the Office of Foreign Assets Control in November 2018 had already caused a substantial drop in trade between India and Iran.
Official statistics reveal that India’s total trade with Iran was valued at $1.68 billion in 2024–25, which included exports amounting to $1.24 billion, primarily from the agriculture sector.
During this period, India’s exports to Iran constituted merely 0.28% of its total exports of $437 billion. Key exports from India to Iran include cereals, animal feed, tea and coffee, spices, fruits and vegetables, and pharmaceutical goods.
The government has stated that a definitive decision will be made once the US provides its detailed order regarding the proposed tariff.
Point of View
It is crucial to recognize that India’s trade with Iran is primarily humanitarian-focused, despite external pressures. The government’s prudent approach in awaiting further clarity from the US executive order demonstrates a commitment to maintaining essential trade relations while adhering to international guidelines. This strategy not only supports humanitarian efforts but also safeguards India's economic interests.
NationPress
15/01/2026
Frequently Asked Questions
What is the nature of India's exports to Iran?
India's exports to Iran primarily consist of humanitarian goods, including food products and pharmaceuticals.
What is the proposed tariff by the US on trade with Iran?
The US has proposed a 25% tariff on all trade with Iran, effective immediately.
How has previous US sanctions affected India-Iran trade?
Previous sanctions from the US had already led to a significant decline in trade between India and Iran.
What percentage of India's total exports goes to Iran?
India's exports to Iran accounted for only 0.28% of its total exports of $437 billion during the last reported period.
What goods are primarily exported from India to Iran?
Key exports from India to Iran include cereals, animal fodder, tea, coffee, spices, fruits, and vegetables.
