Trump Iran Tariffs: India’s pharmaceutical exports to West Asian country hit record high in 2025    

US President Donald Trump’s new threat of imposing an additional 25% tariff on countries that trade with Iran, which has witnessed protests against the ruling regime, could hurt India’s exports to the West Asian nation. 

Exports of pharmaceutical products to Iran hit a five-year high in 2025, jumping 70% in calendar year 2025 compared with 2024, according to official data. Besides, India has been among Iran’s five largest trade partners in recent years, noted the Ministry of External Affairs (MEA) country briefs.

Major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery, artificial jewellery, etc. On the other hand, India imports dry fruits, inorganic/organic chemicals and glassware from Iran.

As per the Trade Intelligence and Analytics Portal, Department of Commerce, the pharmaceutical products export to Iran in CY25 stood at $44.256 million compared to $25.263 million in CY24. It is the highest ever export since 2021, when it stood at $35,574 million. 

Pharma exports to Tehran, including generic medicines and special formulas, have been rising constantly. Another category that saw a sharp jump in CY25 was sugar and sugar confectionery, rising from just 3.24 million in 2024 to 24.22 million in 2025.

Rice remains the most exported commodity. However, there have been concerns over a sharp decline in Basmati rice export to the country. The NITI Aayog Trade Watch for Q1FY26 says cereals account for 2.62% of India’s exports, and Iran is the second-highest importer.

“India’s dependence on the Middle East for both energy and agricultural exports makes it vulnerable, with key markets such as Iran for basmati rice and tea seeing sharp declines,” noted the NITI Aayog report.