India’s exports to Iran have been declining over the past year due to a decrease in the rupee reserves of the West Asian economy.
In the future, it may be difficult for India to increase exports to Iran due to geopolitical tensions such as the Russia-Ukraine and Israel-Hamas conflicts, as well as Iran’s support for Russia and Hamas, according to sources familiar with the situation.
Exports to Iran have been on a downward trend since November of last year. From January to October of calendar year 2023, outbound shipments to Iran decreased by almost 44 percent to $888 million.
The decrease has been largely driven by a decline in basmati rice exports, as well as high-quality products.