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Tariff Threat and Iran Unrest Stall Indian Trade, Clouding Chabahar Plans

India awaits formal details on a proposed 25% levy from Washington.

Overview

  • Consignments worth more than ₹2,000 crore bound for Iran are stuck at Kandla and Mundra after unrest disrupted Iranian port operations and payments.
  • Indian exporters have paused new deals for basmati rice and other goods due to non-payment risks and currency volatility.
  • The commerce ministry said it is awaiting details on President Trump’s proposed 25% tariff on countries doing business with Iran, which remains without implementing rules.
  • India’s Chabahar port operations continue under a US waiver valid through April, with experts warning the project could be at risk if the waiver is not extended.
  • Brent crude has climbed above $64 a barrel, raising import costs for India, though Iran represents about 0.3% of India’s total exports according to analysts.