India’s economic and diplomatic ties with Iran are under renewed scrutiny following a U.S. announcement that countries maintaining trade with Iran could face a 25% tariff if they seek business relations with the United States. Government officials have indicated that India is planning to reduce its trade with Iran further in the current fiscal year due to external economic pressures, even as it prepares to host Iran’s President Masoud Pezeshkian during the upcoming BRICS summit. The summit marks the 75th anniversary of diplomatic relations between India and Iran.
Despite the U.S. tariff threat, sources suggest the impact on India will be limited. However, Washington’s policy has introduced uncertainty over the anticipated visit of Iranian Foreign Minister Syed Abbas Araghchi to New Delhi later this month. India’s External Affairs Minister, S. Jaishankar, highlighted the country’s vision for BRICS 2026, emphasizing that the organization can withstand global shocks. India’s position on Iran will attract significant attention, given that the Islamic Republic is a BRICS member and India has been a founding participant of the bloc.
At the launch of the BRICS 2026 logo, attended by key envoys including the Russian and Iranian ambassadors, Mr. Jaishankar also revealed discussions with U.S. Secretary of State Marco Rubio on trade, critical minerals, nuclear cooperation, defense, and energy. Bilateral and multilateral relations with Iran were expected to advance this year, particularly through India’s plans to expand its presence in Iran’s strategically vital Chabahar port. The port plays a central role in India’s connectivity projects with Central Asia and Russia and aligns with India’s emerging engagement with Afghanistan’s Taliban administration.
While Iran’s President faces no legal obstacles traveling to India as a BRICS member, the ongoing U.S.-Iran confrontation has created a domestic crisis in Iran, compounded by public protests reportedly encouraged by U.S. pressure. India remains in contact with its citizens in Iran amid intermittent Internet blackouts. The Iranian Foreign Minister’s visit, originally scheduled to review bilateral collaboration, was also expected to focus on Indian welfare in Iran. The visit would have been Mr. Araghchi’s second in under a year, following his May 2025 trip after India’s Operation Sindoor. Diplomatic engagement continues, with India weighing both strategic interests and citizen safety while navigating U.S.-Iran tensions.
