US President Donald Trump’s new diktat in opposition to Iran could have some resonance with India. In an try and nook Iran, Trump has put Tehran’s trading partners within the line of hearth. Any nation doing enterprise with Iran will likely be penalised with 25 per cent further tariffs from Washington.
Which brings us to Iran’s prime trading partners – China, Turkey, India, the UAE, Pakistan and Armenia. India already is going through 50 per cent tariffs from the US. Moreover, if US Senator Lindsey Graham is to be believed, Trump has greenlit a invoice to punish nations – that features India, China, Brazil – which proceed to purchase Russian oil regardless of sanctions.
WHAT THE GOVT SAYS
Trade ministry officers instructed Business Today that because the announcement got here at midnight, the division is at the moment within the course of of analysing the possible impression, and is anticipated to concern an announcement quickly.
Officials mentioned that the assertion is anticipated round midday on Tuesday.
INDIA-IRAN TRADE BREAKUP
Iran and India share a “long-standing relationship” in terms of trade, mentioned the Indian Embassy in Tehran. Major Indian exports to Iran embrace basmati rice, tea, sugar, recent fruits and medicines/prescribed drugs, whereas main exports from Iran to India embrace apples, pistachios, dates and kiwi.
As per the information made obtainable by the embassy, Indian exports to Iran in 2024-25 amounted to $1.24 billion, and imports amounted to $440 million. The complete bilateral trade amounted to $1.68 billion, which is a drop from $1.85 billion in 2023-24, and $2.33 billion in 2022-23. In the pandemic years prior, trade had dropped to $1.91 billion in 2021-22, and $2.1 billion in 2020-21.
India-Iran bilateral trade amounted to $4.77 billion in 2019-20, which is a major drop of 72 per cent from 2018-19’s $17.03 billion.
CHABAHAR PORT
The joint improvement of Chabahar port is a key side of India-Iran relations. Located in Iran’s Sistan-Balochistan province on the southern coast, the port is meant to serve as an necessary route for items and power assets, strengthening financial ties between the 2 nations and the area.
India and Iran formalised their cooperation on Chabahar port with a Memorandum of Understanding in May 2015, which was adopted in 2016 by the Trilateral Agreement with Afghanistan to determine the International Transport and Transit Corridor. The Ministry of External Affairs acknowledged that India is concerned in growing the primary part of the Shahid Beheshti Terminal at Chabahar Port in partnership with Iran.
In December 2018, India Ports Global Limited (IPGL) took over operational accountability for the port by its wholly owned subsidiary, India Ports Global Chabahar Free Zone (IPGCFZ).
The partnership progressed additional in May 2024 when IPGL signed a ten-year contract with Iran’s Ports and Maritime Organisation to equip and function the Shahid Beheshti Terminal. The settlement goals to enhance the port’s capability and operational effectivity.
