U.S. President Donald Trump’s announcement of an additional 25% tariff on countries trading with Iran is expected to have minimal impact on India’s economy and trade practices, government sources said.
India’s exposure to Iran-linked trade remains limited, with Tehran not even featuring among New Delhi’s top 50 global trading partners.India’s total trade with Iran stood at around $1.6 billion last year, accounting for just 0.15% of India’s overall trade volume.
Officials noted that this figure is likely to decline further in the current financial year due to external economic pressures and ongoing geopolitical uncertainties.
In contrast, Iran’s major import partners include the UAE, China, Turkiye and the European Union, which together dominate Tehran’s trade basket. India’s share of Iran’s imports is estimated at only $1.2 billion, or about 2.3%.
Given these modest trade links, officials said the latest US tariff move is unlikely to disrupt India’s trade flows or broader economic stability.
