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Free trade agreement ยท ๐Ÿ‡ฎ๐Ÿ‡ณ โ†” ๐Ÿ‡ฎ๐Ÿ‡ท ยท Under Exploration ๐Ÿ”„ (sanctions context)

India-Iran PTA.

India-Iran Preferential Trade Agreement (Exploring)

India-Iran PTA โ€” Under Exploration ๐Ÿ”„ (sanctions context). Proposed PTA under exploration. India-relevant trade: USD USD 2.5B.

India + IranParties
Under Exploration ๐Ÿ”„ (sanctions context)Status
โ€”In force
โ€”Signed
Coverage

What this agreement covers.

Proposed PTA under exploration

Key benefits

Why this agreement matters.

  • โœ“ India-Iran bilateral trade USD 2.5B despite sanctions
  • โœ“ Chabahar Port (India-developed) is strategic connectivity asset
  • โœ“ Iran is a key transit route to Central Asia and Afghanistan
  • โœ“ India purchases Iranian petroleum under sanctions-exempt arrangements
India position

How this FTA relates to India.

Both parties โ€” complex sanctions context

Aggregate trade volume among parties: USD 2.5B

Risk framework

FTA compliance risks.

Risk Assessment Mitigation
USA secondary sanctions on Iran create third-party risk for Indian banks High โ€” complex sanctions compliance required Work through sanctioned-exempt Chabahar arrangement and INR payment mechanisms; verify US OFAC exclusions
Iran sanctions affect insurance, shipping, and banking for India-Iran trade High โ€” major logistics and financing constraints Use Indian-flag vessels and Indian insurance where possible; Indian bank rupee payment mechanisms
Cited from

Referenced by these country pages.

Iran
Frequently asked

FAQ ยท India-Iran PTA.

What is Chabahar Port and why is India invested?

Chabahar Port on Iran's Gulf of Oman coast is India's strategic infrastructure investment. It provides India access to Afghanistan and Central Asia without routing through Pakistan. USA has granted Chabahar a sanctions exemption.

What does India currently export to Iran?

Pharma (significant โ€” Iran needs generic medicines), engineering goods, agro-food (rice, sugar, wheat), textiles. India is one of Iran's largest suppliers of essential pharmaceuticals.

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