India on Friday said it is carefully tracking the evolving situation in Iran and will continue to shape its engagement with Tehran in line with ground realities, even as the United States announced a fresh 25 per cent tariff on countries conducting business with Iran. The government underlined that New Delhi remains alert to regional and international developments while safeguarding its long-standing strategic and diplomatic interests.
Responding to media queries, External Affairs Ministry spokesperson Randhir Jaiswal said India has maintained a historically strong partnership with Iran and is closely observing recent developments. He stressed that India’s future engagement with Tehran would be guided by how the situation unfolds. According to him, New Delhi is continuously assessing political, economic and security-related factors before taking any further steps.
Speaking specifically on the proposed 25 per cent tariff announced by Washington, Jaiswal reiterated that India is “closely following all these developments,” while also pointing out that bilateral trade between India and Iran remains limited in scale. He explained that during the last financial year, total bilateral trade stood at approximately $1.6 billion, of which Indian exports to Iran accounted for about $1.2 billion, while imports from Iran were roughly $0.4 billion.
Placing the figures in a broader perspective, Jaiswal noted that Iran’s contribution to India’s overall global trade is relatively small. He stated that Iran accounts for only around 0.15 per cent of India’s total trade volume worldwide, highlighting its marginal position in India’s external trade basket. Iran does not feature among India’s top 50 trading partners, and current trade is largely confined to food products and pharmaceuticals. India also ceased importing crude oil from Iran in May 2019 following the imposition of US sanctions during the first term of Donald Trump.
The remarks come amid reports that India is reassessing its options regarding continued involvement in the strategically important Chabahar Port project located in Iran’s Sistan-Balochistan province, particularly in the context of renewed American pressure. India is a key development partner in the port, and the two countries have a 10-year agreement for the development and operation of a terminal there.
In October last year, the US granted India a conditional six-month sanctions waiver for the Chabahar project, valid until April 26, 2026. Referring to this, Jaiswal recalled that the US Department of the Treasury had issued formal guidance on October 28 outlining the scope of the waiver. He added that India remains in dialogue with the US to work through the arrangement and ensure continuity of the project within the permitted framework.
Officials have indicated that India may proceed with transferring around $120 million already committed to the port project and is also considering the creation of a new entity to continue development work. Such a move, they said, could help limit direct government exposure while still maintaining India’s strategic presence and support for the project. Both India and Iran have consistently advocated for Chabahar to be linked with the International North-South Transport Corridor, a 7,200-kilometre multi-modal connectivity network aimed at enhancing trade links between India, Iran, Central Asia, Russia and Europe.
Meanwhile, Iran has been witnessing widespread anti-government protests triggered by economic hardships and political demands, with activists claiming that more than 2,000 people have been killed. Tensions have further escalated following warnings from Trump of “very strong action” if Tehran intensifies its crackdown on protesters.
Addressing concerns about the safety of Indian nationals, Jaiswal said the Indian embassy in Iran is in constant touch with the community there. He stated that approximately 9,000 Indian citizens are currently residing in Iran, the majority of whom are students. He added that India has issued multiple advisories in light of the deteriorating security situation.
According to these advisories, Indian citizens in India have been strongly advised not to travel to Iran at this time, while those currently residing there have been urged to leave the country using any available means. New Delhi has also advised against all non-essential travel to Iran, underscoring the seriousness with which it is treating the unfolding situation.
