**Executive Summary**
This document is a response to Unstarred Question No. 1750 in Lok Sabha regarding India-Iran trade, answered on February 10, 2026. It addresses the trade relationship between India and Iran, India's investment in and use of the Chabahar Port, and the potential impact of US tariffs on trade with Iran. It also provides links to find more detail on these topics.
**Key Points / Main Content**
* **India-Iran Trade Relations:**
* During the period of April-December 2025, the total merchandise trade with Iran amounted to USD 1,145.29 million, with exports totaling USD 883.10 million and imports totaling USD 262.19 million.
* India's trade with Iran is primarily humanitarian, focusing on agricultural products and pharmaceuticals.
* Detailed information on India's merchandise imports and exports with Iran (item-wise and value-wise, for April-November 2025) is available at provided URLs.
* **Chabahar Port Project:**
* The Chabahar Port project aims to enhance connectivity to Afghanistan for reconstruction, economic development, and trade with Central Asia.
* India Ports Global Limited (IPGL), through its subsidiary India Ports Global Chabahar Free Zone (IPGCFZ), has been operating the port since 2018.
* On May 13, 2024, IPGL signed a ten-year contract to equip and operate the Shahid Beheshti Terminal of Chabahar Port.
* India has fulfilled its commitment of USD 120 million for the procurement of port equipment, as per the contract provisions.
* **US Tariffs and Trade Equation:**
* No communication has been received regarding the impact of the 25% tariff on countries trading with Iran by US.
**Impact Analysis**
**India**
* **Impact:** India benefits from enhanced trade relations and connectivity to Afghanistan and Central Asia through the Chabahar Port. India benefits from humanitarian trade (agricultural and pharmaceutical products)
* **Action Required:** Continue supporting Chabahar port and monitor for trade policy developments and refer to provided URL for trade details.
**Afghanistan**
* **Impact:** Afghanistan benefits from enhanced connectivity, reconstruction, and economic development via the Chabahar Port project.
* **Action Required:** Leverage Chabahar port to enhance trade.
**India Ports Global Limited (IPGL) and India Ports Global Chabahar Free Zone (IPGCFZ)**
* **Impact:** Responsible for operating and equipping the port, including a ten-year contract signed in May 2024.
* **Action Required:** Continue operating and equipping the Shahid Beheshti Terminal as per the agreement and continue procurement of port equipment.
**Ports and Maritime Organisation of the Islamic Republic of Iran**
* **Impact:** Signed a ten-year contract with IPGL for equipping and operating the Shahid Beheshti Terminal of Chabahar Port.
* **Action Required:** Coordination and oversight of operations.
Key Entities Referenced
Ministry of Commerce & Industry: Indian government ministry responsible for international trade and commerce.
Chabahar Port: A port in Iran of strategic importance to India for trade with Afghanistan and Central Asia.
India Ports Global Limited (IPGL): An Indian company operating the Chabahar Port.
Iran: One of the two countries between whom trade relations are discussed.
India: One of the two countries between whom trade relations are discussed.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO.1750
ANSWERED ON 10/02/2026
INDIA–IRAN TRADE
1750. THIRU D M KATHIR ANAND
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be
pleased to state:
(a) whether India and Iran share a significant trade relationship, with bilateral trade
reaching $2 billion in Financial Year 2025-26, driven by key exports and imports
and strategic projects like the Chabahar port and the INSTC, if so, the details of
items imported and exported between India and Iran;
(b) whether India has invested $500 million in Chabahar Port and depends on
the International North-South Transport Corridor links India to Russia and
Europe via Iran, reducing transit times and costs compared to traditional
maritime routes and if so, the details thereof; and
(c) whether the 25% tariff on countries trading with Iran by US would adversely affect
India’s trade equation with Iran and if so, the Government action in this regard?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) During the current financial year (April–December, 2025), India’s total
merchandise trade with Iran stood at USD 1,145.29 million, comprising exports of USD
883.10 million and imports of USD 262.19 million. India’s trade is mostly humanitarian
in nature, encompassing agricultural products and pharmaceuticals. The details of
India’s merchandise imports and exports with Iran, item-wise and value-wise, for the
period April–November 2025, may be accessed at the following link:
https://tradestat.commerce.gov.in/meidb/country_wise_all_commodities_export
https://tradestat.commerce.gov.in/meidb/country_wise_all_commodities_import
(b) The Chabahar Port project was conceptualized to provide much-needed
connectivity to Afghanistan for its reconstruction and economic development and for
boosting trade and economic linkages with Central Asia.An Indian company, India
Ports Global Limited (IPGL), through its wholly owned subsidiary, India Ports Global
Chabahar Free Zone (IPGCFZ), has been operating the port since 2018. On 13 May
2024, IPGL signed a ten-year contract with the Ports and Maritime Organisation of the
Islamic Republic of Iran for equipping and operating the Shahid Beheshti Terminal of
Chabahar Port. As per the provisions of the contract, India has fulfilled its commitment
of USD 120 million for the procurement of port equipment.
(c) No such communication has been received.
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