Iran and India Have Targeted Non-Oil Trade Growth
The nations seek to boost bilateral economic ties through private sector collaboration and BRICS frameworks.
Updated on Sept. 27, 2026 in International Trade
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Iran and India are aiming to expand their non-oil trade relations following a significant decline in volume since 2019. The two nations are leveraging private sector cooperation and their joint membership in BRICS to stabilize and grow their economic output.
Why it matters
Bilateral trade has fallen sharply from its $17 billion peak in the 2018-2019 fiscal year due to persistent U.S. sanctions and banking restrictions. By shifting focus toward non-oil goods and transit projects, both countries hope to bypass current economic hurdles.
Total bilateral trade reached $1.63 billion during the 2025-2026 fiscal year, consisting of $1.25 billion in Indian exports and $370 million in imports. This total remains significantly below the $17 billion record established during the 2018-2019 period.
The players
Shri Vishwesh Negi
He is the current ambassador of India to Iran responsible for overseeing diplomatic relations and trade initiatives.
BRICS
This is an intergovernmental organization comprising major emerging economies that is now serving as a platform for new economic cooperation frameworks.
The details
The strategy centers on increasing B2B meetings and private sector exchanges while utilizing the Chabahar Port, which India secured a 10-year contract to operate in 2024. India has already exported over 790,000 tons of basmati rice to Iran during the first 10 months of the current fiscal year.
Timeline
The 2018-2019 fiscal year saw trade volume reach a peak of $17 billion.
India signed a 10-year contract to operate the Shahid Beheshti Terminal at Chabahar Port in 2024.
Bilateral trade volume totaled approximately $1.63 billion for the 2025-2026 fiscal year.
India currently holds the BRICS presidency throughout 2026.
Member nations aim to finalize a new economic cooperation framework by 2030.
Market Dynamics
This effort follows the 2024 commitment to the 10-year contract for Chabahar Port operations, which acts as the cornerstone for India's regional transit ambitions. The initiative marks a strategic pivot toward infrastructure-led trade to counteract the volatility caused by global banking restrictions.
Retail and institutional investors with exposure to agricultural commodities or regional shipping infrastructure should monitor the status of Chabahar Port operations. The shift toward B2B trade frameworks may influence supply chain stability for firms involved in the Iran-India trade corridor.
The takeaway
The move toward a non-oil trade focus highlights the need for nations to establish independent infrastructure when traditional banking channels are compromised. Businesses operating in these regions should prioritize diversifying their logistics networks to mitigate the impact of ongoing sanctions.
What happens next
BRICS member nations are working toward a deadline of 2030 to finalize a formal economic cooperation framework.
Further reading
For more on evolving trade patterns, visit the International Trade section.
Source note: This article includes information reported by Tehran Times.
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