Escalation of tension between the US and Iran will have implications on India’s exports to the Persian Gulf nation, said FIEO President Sharad Kumar Saraf. Tensions between Iran and the US increased after an American drone strike that killed top Iranian General last week. Iran is a key trading partner of India. FIEO Chief said so far exporters have not flagged any concerns related with exports to Iran. “However, if the tensions esclates, it may have an effect on India’s exports to Iran,” added Saraf.

FIEO Chief also said that due to existing trade sanctions on Iran, Iranian shipping lines are only taking Indian consignments to that country. Iran’s major exports to India are oil, fertilisers and chemicals, while it imports cereals, tea, coffee, basmati rice, spices and organic chemicals, among others said Saraf.

FIEO President also added that India’s exports to Iran during 2018-19 were $3.51 bn, while imports were $13.52 bn. The trade imbalance is mainly because of India’s import of oil from Iran. Sharad Kumar Saraf is also of the view that Iran holds huge export opportunities in sectors such as agriculture, chemicals, machinery, pharmaceuticals, paper and paper products, man-made fibre and filament yarn and essential oils.