Apex exporters’ body Federation of Indian Export Organisations (FIEO) on Tuesday said that US President Donald Trump’s announcement to impose a 25 per cent duty on countries doing business with Iran is unlikely to have any significant impact on India.
President Trump recently announced that any country engaging in trade with Iran would face a 25 per cent tariff on its trade with the United States, a move that could affect major trading partners of Tehran such as India, China and the UAE.
However, FIEO said Indian companies and banks are fully compliant with the Office of Foreign Assets Control (OFAC) sanctions, limiting their engagement to clearly permitted humanitarian trade, primarily in food and pharmaceutical products.
“There is, therefore, no basis to anticipate any adverse impact on India,” FIEO Director General Ajay Sahai said.
India’s total trade with Iran stood at USD 1.68 billion in 2024–25 (April–March), of which exports accounted for USD 1.24 billion, largely driven by the farm and pharmaceutical sectors. Key exports included cereals, animal fodder, tea and coffee, spices, fruits and vegetables, rice, sugar, pharmaceuticals, manmade staple fibres, electrical machinery and artificial jewellery.
“As we all know, trade with Iran is outside US sanctions due to the humanitarian nature of most of these products. Therefore, the additional 25 per cent tariff announced by the US will almost have no impact on India,” FIEO said in a statement.
The announcement has drawn attention as exporters remain cautious amid rising trade uncertainties. Indian exporters are already facing pressure from steep tariffs of up to 50 per cent imposed by the US on certain goods.
On the import side, India mainly sources dry fruits, inorganic and organic chemicals, and glassware from Iran. During 2024–25, India’s merchandise exports to Iran rose marginally by 1.55 per cent to USD 1.24 billion, while imports declined sharply by 29.32 per cent to USD 441.83 million.
Beyond trade, a key pillar of India-Iran relations remains the joint development of the Chabahar port. Located in Iran’s Sistan-Balochistan province on the country’s southern coast, the port is strategically important for enhancing regional connectivity and strengthening trade links.
