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India Calls Trade with Iran "Humanitarian," Awaits US Tariff Details

India's Commerce Secretary stated that the country's exports to Iran are largely humanitarian in nature, involving items like food and pharmaceuticals. The government is awaiting the detailed US executive order to assess the impact of President Trump's proposed 25% tariff on nations trading with Iran. Indian trade with Iran has already sharply declined following earlier US sanctions in 2018. Official data shows that India's total trade with Iran is a minuscule portion of its overall export volume.

Key Points: India's Humanitarian Trade with Iran Amid US Tariff Threat

  • India's Iran trade is mostly humanitarian goods
  • Awaiting detailed US executive order on 25% tariff
  • Trade already declined due to 2018 sanctions
  • Exports to Iran are just 0.28% of India's total
2 min read

Trade with Iran is mostly humanitarian: Commerce Secretary

India says its exports to Iran are mostly humanitarian goods as it awaits the detailed US executive order on President Trump's proposed 25% tariff.

Trade with Iran is mostly humanitarian: Commerce Secretary
"The government is studying the announcement and is awaiting the official executive order to understand its implications. - Commerce Secretary Rajesh Agrawal"

New Delhi, Jan 15

India's exports to Iran are mostly humanitarian in nature and the government will wait for the detailed US executive order before assessing the impact of the proposed 25 per cent tariff announced by US President Donald Trump, Commerce Secretary Rajesh Agrawal said on Thursday.

Trump had said in a social media post on Monday that any country doing business with Iran would face a 25 per cent tariff on all trade with the United States, with immediate effect.

However, Indian officials said they are still waiting for clarity on the announcement.

The Commerce Secretary said India has limited trade with Iran and most of it involves humanitarian goods.

He added that the government is studying the announcement and is awaiting the official executive order to understand its implications.

"The government is studying the announcement and is awaiting the official executive order to understand its implications," he added.

Industry body Federation of Indian Export Organisations said Indian companies and banks are fully complying with sanctions issued by the US Office of Foreign Assets Control.

It said trade with Iran is restricted to permitted humanitarian items, mainly food products and pharmaceuticals.

Earlier sanctions imposed by the Office of Foreign Assets Control under the US Department of the Treasury in November 2018 had already led to a sharp decline in trade between India and Iran.

According to official data, India's total trade with Iran stood at $1.68 billion in 2024-25.

This included exports worth $1.24 billion, largely from the agriculture sector.

India's exports to Iran made up just 0.28 per cent of its total exports of $437 billion during the same period.

India's key exports to Iran include cereals, animal fodder, tea and coffee, spices, fruits and vegetables, and pharmaceutical products.

The government said it will take a final view once the US issues the detailed order on the proposed tariff.

- IANS

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Reader Comments

R
Rohit P
This is concerning. Even if it's a small percentage of our total exports, a 25% tariff from the US would hurt our farmers and pharma companies. We need to diversify our trade partners more aggressively. Can't keep dancing to someone else's tune all the time. 🇮🇳
A
Arjun K
Good move by the Commerce Secretary to study the details first. Jumping to conclusions helps no one. Our exports are essential items like rice and medicines. Surely the US can see the difference between humanitarian aid and strategic trade?
S
Sarah B
While I understand the need for caution, I respectfully think our response could be more proactive. We should be building stronger diplomatic channels to explain our position on humanitarian trade before a tariff is imposed, not just waiting for the order.
V
Vikram M
$1.24 billion in exports might seem small, but for our agricultural sector, every market counts. Hope the government negotiates an exemption for humanitarian goods. We have historical and cultural ties with Iran that go beyond just politics.
K
Kavya N
The data shows trade has already declined sharply since 2018. Our companies are complying with all rules. This feels like unnecessary pressure. Sending food and medicine should not be politicized. 🙏

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