India, already dealing with hefty US tariffs, may feel the effects of US President Donald Trump’s new 25% tariffs on nations engaging in business with Iran. New Delhi ranks among Tehran’s top five trade partners, with a bilateral trade volume of $1.68 billion, including exports of $1.24 billion and imports of $0.44 billion in the fiscal year 2024-25. The Indian Embassy in Tehran notes that India is a significant trade partner for Iran, with major exports like rice, tea, sugar, pharmaceuticals, and electrical machinery.
India and Iran entered a 2015 MoU to collaborate on the development of the Shahid Beheshti Port in Chabahar, Iran. The Indian Embassy emphasizes the strategic importance of Chabahar Port as a key regional and international trade hub for the movement of goods. Recently, the US granted India a six-month sanctions waiver for operations at Chabahar port, extending until April next year. This waiver is crucial for India’s trade access to Afghanistan and Central Asia, bypassing Pakistan.
While China stands as Iran’s primary trading partner, India, along with the UAE and Turkey, could encounter challenges due to the new US tariffs, as per industry experts. The US waiver for India at Chabahar port is seen as a diplomatic victory amidst broader tensions involving US sanctions on Iran and Russia. The port’s significance lies in facilitating India’s trade and connectivity with Afghanistan and Central Asia, circumventing Pakistan’s routes.
