India-Iran Bilateral Trade Dips 90% In 3-year Due To US Sanctions

India-Iran bilateral trade came down to USD 2.33 billion during the FY 2022-23 from a high of USD 17 billion in 2018-19, according to the Department of Commerce of India. This is a fall of 86.29 per cent in the last four years in the wake of US sanctions on Tehran.

Trade between New Delhi-Tehran dwindled to another low of USD 1.94 billion in 2021-22 from 2018-19 which is a drop of 88.58 per cent.

During the period of FY 2022-23, India’s exports to Iran were USD 1.66 billion and imports from Iran were USD 672.12 million.

In the current fiscal year from the period April 2023-July 2023, bilateral trade stood at USD 660.70 million. During the period, Indian exports amounted to USD 455.64 million and Indian imports amounted to USD 205.14 million. Total trade decreased by 23.32 per cent as compared to the corresponding figure of the previous year. 

In 2022-23, Iran was India’s 59th biggest trading partner, with bilateral trade reaching USD 2.33 billion.

India’s trade with Iran has seen a contraction in recent years, before an uptick in FY 2022-23. It increased by 21.77 per cent — from USD 1.94 billion in 2021-22 to USD 2.33 billion in 2022-23.

Trade with Iran also dwindled from a high of USD 17 billion in 2018-19 to USD 4.77 billion in 2019-20, and further to USD 2.11 billion in 2020-21.

India mainly exports agricultural goods and livestock products including meat, skimmed milk, buttermilk, ghee, onions, garlic and canned vegetables. Whereas, India imports methyl alcohol, petroleum bitumen, liquified butanes, apples, liquified propane, dates and almonds from Iran.

On the other side, the India-Israel trade has doubled in the last five years to USD 10.7 billion (excluding defence) in the FY 2022-23 from USD 5.56 billion in 2018-19 

A sharp rise has happened in the last few years as relations between both countries improved. Between 2021-22 and 2022-23, trade increased by 36.9 per cent — from USD 7.87 billion to USD 10.77 billion.

In 2022-23, India’s exports to Israel were worth USD 8.45 billion, while New Delhi’s imports from Israel stood at USD 2.3 billion, leaving a trade surplus of USD 6.13 billion in India’s favour.

India is Israel’s second-largest trading partner in Asia and the seventh-largest globally, according to the Ministry of External Affairs.