US President Donald Trump's announcement to impose a 25 per cent duty on countries doing business with Iran is likely to have minimal impact on India.
According to government sources, for India, Iran does not even figure in the top 50 global trading partners.
Last year, India's total trade with Iran was $1.6 billion, which is approximately 0.15 per cent of India's total trade, news agency ANI quoted government sources as saying.
They said India’s trade value with Iran is expected to further go down in the current financial year, given external economic factors.
"Iran's total imports were about $68 billion in 2024, of which its leading import partners were the UAE ($21 billion - 30 per cent), China ($17 billion - 26 per cent), Turkiye ($11 billion - 16 per cent), and the EU ($6 billion - 9 per cent). India’s share is only $1.2 billion (2.3 per cent)," according to government sources.
The Federation of Indian Export Organisations (FIEO), the apex body of exporters, too, said the tariff directive will have almost no impact on India.
FIEO said that Indian companies and banks are in full and demonstrable compliance with OFAC (Office of Foreign Assets Control) sanctions on Iran, engaging exclusively in clearly permitted humanitarian trade, mainly in food and pharmaceuticals.
"There is, therefore, no basis to anticipate any adverse impact on India," FIEO Director General Ajay Sahai said.
India's top exported products to Iran were cereals, animal fodder, tea and coffee, spices, fruits and vegetables, and pharmaceuticals.
"As we all know that the trade with Iran is outside the sanctions imposed by the US, given the humanitarian nature of most of these products. And therefore, FIEO is of the view that the impact of an additional 25 per cent tariff imposed by the US on any country doing business with Iran will almost have no impact on India," FIEO said.
Major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery and artificial jewellery, while major imports consist of dry fruits, inorganic/organic chemicals and glassware.
