Tougher US sanctions on Iran are raising fresh concerns for Indian exporters, but for the country’s basmati rice industry, the immediate risk is not a collapse in Iranian demand. Instead, exporters are increasingly worried about whether they can continue to move cargo, ensure shipments, and receive payments smoothly as sanctions tighten and established trade channels come under pressure.
In recent years, bilateral trade between India and Iran has contracted sharply. According to government data, bilateral merchandise trade between India and Iran declined from $17.03 billion in 2018-19 to $4.77 billion the following year and has since dropped to just $1.63 billion in 2025-26—a decline of about 90%. In the latest year, India exported goods worth $1.25 billion to Iran while imports stood at $0.37 billion, leaving India with a trade surplus of about $880 million, according to the Embassy of India in Tehran.
