US sanctions on Iran to have minimal impact on India, say govt sources - here’s why

India is improbable to look immoderate large interaction from the 25 per cent tariff announced by the US President Donald Trump connected countries doing concern with Iran, arsenic per authorities sources cited by quality bureau ANI, who pointed to India’s constricted commercialized vulnerability with Tehran.Newly announced US tariffs are ‘likely to person minimal interaction connected India’ arsenic Iran does not diagnostic among the nation's apical 50 trading partners, the authorities sources said. India’s full commercialized with Iran stood astatine astir $1.6 cardinal past year, accounting for conscionable 0.15 per cent of India’s wide trade. This fig is expected to diminution further successful the existent fiscal twelvemonth owed to broader outer economical factors. Of Iran’s full imports of astir $68 cardinal successful 2024, the UAE, China, Turkiye and the European Union unneurotic accounted for the bulk, portion India’s stock was lone $1.2 billion, oregon 2.3 per cent.Exporters person besides downplayed concerns. Ajay Sahai, manager wide of the Federation of Indian Export Organisations (FIEO), said Indian companies and banks stay afloat compliant with US Office of Foreign Assets Control norms and prosecute lone successful permitted humanitarian trade, chiefly nutrient items and pharmaceuticals, reported quality bureau PTI.“There is, therefore, nary ground to expect immoderate adverse interaction connected India,” Sahai said.

He noted that India’s commercialized with Iran mostly falls extracurricular the scope of sanctions owed to its humanitarian nature. In 2024-25, India’s full commercialized with Iran was $1.68 billion, including $1.24 cardinal successful exports, chiefly from the workplace and pharmaceutical sectors, arsenic per PTI.Industry representatives, however, flagged different challenges. Sahai said the crisp depreciation of the Iranian currency is simply a bigger interest for exporters, arsenic it weakens user purchasing powerfulness and raises risks of cancelled contracts. Rice exporters besides said their existent vulnerability to Iran is constricted and progressively routed done the UAE to negociate risks, reported ANI.Overall, exporters stay cautious but judge the projected US tariff volition person small nonstop effect connected India, fixed the tiny commercialized volumes and the humanitarian quality of astir shipments.