Trade with Iran is mostly humanitarian: Commerce Secretary Rajesh Agrawal
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.
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