India’s trade relationship with Iran has undergone a seismic shift since the United States reimposed economic sanctions on Tehran in 2019. What was once a flourishing bilateral trade valued at over $17 billion annually has now dwindled to a fraction of its past size.

🔻 Trade Decline: An 87% Contraction Since 2019

In 2019, the total trade between India and Iran stood at $17.6 billion. Fast forward to 2024, and that figure has plummeted to just $2.3 billion, marking an 87% decrease. The collapse is primarily due to the near-complete cessation of energy imports—once the backbone of India’s import profile from Iran.

📊 Table 1: India–Iran Bilateral Trade Snapshot

Year	Total Trade ($ Billion)	India’s Exports to Iran ($ Billion)	India’s Imports from Iran ($ Billion)	Major Import Categories
2013	14.6	5.4	9.2	Mineral Fuels, Chemicals
2018	17.0	4.1	12.9	Mineral Fuels
2019	17.6	3.9	13.7	90%+ Mineral Fuels
2024	2.3	1.3	1.0	Organic Chemicals, Fruits, Nuts

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⛽ From Oil to Organics: A Shift in Import Composition

Prior to sanctions, over 90% of India’s imports from Iran were mineral fuels such as crude oil. That trade has now collapsed by 99%, drastically reshaping the nature of imports.

Today, India’s $1 billion worth of imports from Iran primarily include:

• Organic Chemicals
• Edible Fruits
• Nuts
• Miscellaneous Consumer Goods

Together, these now account for over 80% of India’s imports from Iran, showing a stark departure from the fossil-fuel-driven past.

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📤 Export Landscape: A Two-Thirds Reduction

India’s exports to Iran have also suffered a significant hit, declining by 68% from 2018 levels. In 2019, India exported $3.9 billion worth of goods; by 2024, that figure stands at $1.3 billion. The drop in exports reflects overall trade uncertainty and the challenges posed by international banking restrictions and payment channels.

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🔍 Key Takeaways

• India–Iran trade has declined by 87% since 2019.
• Imports of mineral fuels have dropped by 99%.
• Iran now supplies India mostly with organic chemicals, fruits, and nuts.
• India’s exports to Iran have fallen from $5.4 billion in 2013 to $1.3 billion in 2024.
• The trade shift underlines the wider geopolitical impact of US-led sanctions on regional trade flows.

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📌 Conclusion

The trajectory of India–Iran trade is a textbook example of how geopolitical decisions can reshape economic ties. While the relationship hasn’t been entirely severed, its structure and scale have shifted dramatically. For Indian traders and logistics players, this means re-evaluating opportunities in niche sectors such as food commodities and industrial chemicals—sectors that have shown resilience amid diplomatic headwinds.