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Although India is one of Iran’s major trading partners, Iran itself is not a significant trading partner of India. In 2024-25, Indian exports to Iran stood at $1.24 billion and imports at $440 million, taking the total bilateral trade to $1.68 billion, according to data from the Ministry of Commerce and Industry.
This places Iran 63rd on the long list of India’s trading partners.
To put this in perspective, Iran ranks behind major and mid-tier economies like Germany, Japan, Australia, France, Italy, Mexico, Spain, Vietnam, Qatar, Nepal, Ireland, and even smaller economies like Tanzania, Angola, Togo, Mozambique, Senegal, and Ghana.
Meanwhile, India is among Iran’s top five trading partners, alongside China, Turkey, the United Arab Emirates, Pakistan and Armenia. New Delhi exports basmati rice, tea, sugar, fresh fruits, medicines and pharmaceuticals, and imports apples, pistachios, dates and kiwis, according to the Indian Embassy in Tehran.
When it comes to India, the United States tops the list with an overall trade of over $132 billion, followed by China with over $127 billion, the UAE with over $100 billion, Russia with over $68 billion and Saudi Arabia with over $41 billion.
Despite India’s limited trade with Iran, US President Donald Trump’s diktat of an additional 25 percent on countries doing business with Iran could have knock-on effects for India, which has already been taxed 50 percent by Washington. Additionally, US Senator Lindsey Graham said Trump had given the green light to a bill to penalize countries that continue to buy Russian oil despite sanctions, including India.
It is unclear what impact these potential tariffs would have on trade negotiations between India and the United States. The new American ambassador to India, Sergio Gor, is on a mission to rebuild the strained ties between Washington and New Delhi. He said both parties were actively engaged to close the deal.
Meanwhile, US Commerce Secretary Howard Lutnick said in a recent interview with Chamath Palihapitiya that the trade deal was postponed because Trump expected Prime Minister Narendra Modi to call him, but he was disappointed. “The whole deal has been put in place. But let’s be clear, this is his (Trump’s) deal. He is the closest. He is closing the deal. All it took was for Modi to call the president. They were uncomfortable doing it. Modi did not call. We have done trade deals with Indonesia, the Philippines and Vietnam. We assumed a trade deal with India before them,” he said. Lutnick said that when India finally returned to discuss terms, he responded that the United States would no longer accept those same terms.
