New Delhi, Jan 13 (PTI) Apex exporters' body FIEO on Tuesday said US President Donald Trump's announcement to impose 25 per cent duty on countries doing business with Iran will almost have no impact on India.
Trump has announced that any country doing business with Iran will have to pay a 25 per cent tariff on its trade with Washington, a move that could impact Tehran's major trading partners such as India, China and the UAE.
Federation of Indian Export Organisations (FIEO) said that Indian companies and banks are in full and demonstrable compliance of OFAC (Office of Foreign Assets Control) sanctions on Iran, engaging exclusively in clearly permitted humanitarian trade, mainly in food and pharmaceuticals.
"There is, therefore, no basis to anticipate any adverse impact on India," FIEO Director General Ajay Sahai said.
India had a total trade of USD 1.68 billion with Iran in 2024-25 (April-March), which included USD 1.24 billion in exports primarily from the farm sector.
India's top exported products to Iran were cereals, animal fodder, tea and coffee, spices, fruits and vegetables, and pharmaceuticals.
"As we all know that the trade with Iran is outside the sanctions imposed by US, given the humanitarian nature of most of these products. And therefore, FIEO is of the view that the impact of additional 25 per cent tariff imposed by US on any country doing business with Iran will almost have no impact on India," FIEO said.
The US announcement is important as exporters are keeping their fingers crossed on the impact of the additional duty.
Indian exporters are already reeling under the impact of the steep 50 per cent tariffs imposed by the US.
Major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery and artificial jewellery, while major imports consist of dry fruits, inorganic/organic chemicals and, glassware.
A key aspect of India-Iran ties is the joint development of the Chabahar port. Located in the Sistan-Balochistan province on the energy-rich Iran's southern coast, the port is being developed by India and Iran to boost connectivity and trade ties.
India's merchandise exports to Iran rose by 1.55 per cent to USD 1.24 billion in 2024-25, while imports dipped by 29.32 per cent to USD 441.83 million. PTI RR ANU
ANU
