US Iran sanctions unlikely to dent Indian exports

Nifty24, 334.55115.5. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• By Shruti Srivastava, BloombergLast Updated: Aug 25, 2026, 10: 04: 00 PM IST.
• Rice accounted for $810.08 million of the $1.25 billion in exports to Iran in the financial year concluded March, administration data indicated.
• Exporters shipped almost 60% of basmati rice production to Iran and a few other nations in the Middle East since the US-Iran war began, Bhalothia remarked.
• US President Donald Trump's administration on Monday unveiled sanctions against more than 60 entities, and threatened economic punishment against any country doing business with Iran.
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Nifty24, 334.55115.5. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now. Indian exports face little risk from tougher US sanctions on Iran. Indian exports face little risk from tougher US sanctions on Iran.

As bilateral trade is mainly concentrated in pharmaceuticals and agricultural products, particularly basmati rice, stricter US sanctions on Iran are unlikely to significantly affect India's exports to the country.

Stricter US sanctions on Iran are unlikely to hit local exports as the Persian Gulf nation's bilateral trade with India is largely limited to pharmaceuticals and agricultural commodities, led by basmati rice. Rice accounted for $810.08 million of the $1.25 billion in exports to Iran in the financial year concluded March, administration data indicated. That compares with India's $11.5 billion worth of overall exports of the staple during the year. Trump will have to risk pain to create new Iran sanctions truly bite.

Demand from Iran additionally held up despite higher costs and months of disruption from the war, according to Ajay Bhalothia, general secretary of the All India Rice Exporters Association. Exporters shipped almost 60% of basmati rice production to Iran and a few other nations in the Middle East since the US-Iran war began, Bhalothia remarked. While the cost has only gone up, Iranians have been buying for "food security reasons, " he stated. Live Events.

'Economic D-Day': US announces expansion of sanctions in 'onslaught' on Iran Tehran purchased over 1 million tons of rice in the fiscal year concluded March, up from 855, 132 tons a year before, administration data demonstrates. US President Donald Trump's administration on Monday unveiled sanctions against more than 60 entities, and threatened economic punishment against any country doing business with Iran. Yet, importers and exporters have developed payment networks in Dubai and the wider United Arab Emirates, Germany, China and most lately Turkey, according to Bhalothia. These transactions have not faced disruptions so far, he remarked. Other key Indian shipments to Iran include pharmaceuticals, tea, bananas, cereals, bovine meat and some chemicals. Even these are unlikely to be disrupted, exporters say, citing humanitarian exception and limited alternatives. Meanwhile, India hasn't imported any crude from Iran since 2019, except for a small window that opened up this year due to US waivers. Before the US sanctions on Iran, India had longstanding ties with the nation, with Tehran among its biggest oil suppliers. Add Now!

Indian exports to IranUS sanctions on Iranbasmati rice exportspharmaceutical exports to IranIran trade relations with Indiafood securitypharmaceuticals.

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Taken together, the developments around US Iran sanctions unlikely to dent Indian exports point to a situation that is still moving, and the coming days should bring more clarity.