Indian Prime Minister Narendra Modi has said India wants to boost trade with Iran even amid new US sanctions. Meeting with Iranian President Masoud Pezeshkian in Bishkek, the capital of Kyrgyzstan, he said India wants to further expand and diversify trade between the two countries in the coming days.
In a post on X after the meeting, Modi said he reaffirmed his commitment to further strengthening India’s long-standing friendship with Iran across various fields.
“In the days ahead, we want to broaden the range of our trade goods and diversify them,” he said.
Modi’s remarks came just seven days after the US launched an economic campaign targeting Iran called “Operation Economic Outcast.” Under that campaign, Washington has ramped up pressure across sectors including Iran’s military activities, energy and petrochemical trade. It has also created sanctions risk for foreign parties doing business with Iran.
The meeting with Pezeshkian was the two leaders’ first direct meeting since the US-Iran conflict began six months ago. The talks also covered the regional situation.
Modi said India would continue to support any effort aimed at ensuring lasting peace.
Delhi looks for ways to boost trade under sanctions
Modi did not go into detail on how trade with Iran would be increased. But India’s Foreign Secretary Vikram Misri was asked about it.
Misri said the prime minister spoke of exploring new possibilities that could be implemented even within the existing constraints on trade with Iran.
He said this would require taking into account matters of financing, insurance, transport and logistics.
Trade between India and Iran currently runs through private parties, which must operate within various restrictions under the international trade and financial system.
India historically had a substantial trade relationship with Iran, but it has shrunk considerably because of US sanctions.
Bilateral trade between the two countries stood at $17.03 billion in FY2018-19. That fell to $1.63 billion in FY2025-26.
Delhi’s thinking on Chabahar port
The question of Chabahar port also came up in discussions on transport and maritime cooperation with Iran. India has a long-standing relationship with the strategically important port.
Misri said India continues talks with various stakeholders, aiming to find a “sustainable path” that takes into account Chabahar port’s role.
The US sanctions waiver granted to India for Chabahar port expired on April 26. India has made significant investment in Chabahar.
The Iranian embassy in India, quoting Pezeshkian’s remarks, said there is broad scope to increase cooperation between the two countries in political, economic, scientific, cultural and other areas of mutual interest.
The embassy said that alongside strengthening bilateral cooperation, if the impact of sanctions could be addressed, India-Iran relations could be taken to an even higher level.
Pezeshkian further asked Modi to use India’s extensive contacts with various parties to help Iran move away from the path of war and bloodshed and return to the path of dialogue and understanding.
Trade deficit comes up in Putin meeting
Modi also held a bilateral meeting with Russian President Vladimir Putin in Bishkek. It was the two leaders’ first direct meeting this year.
Misri said the meeting touched on the growing trade deficit between India and Russia, which has widened in particular after India’s large-scale purchases of crude oil from Russia.
Misri said both sides acknowledged the issue, and discussions are under way on increasing India’s exports to Russia across various sectors.
He said that when Putin visited India last year for the annual summit, Modi gave him a document outlining existing obstacles to Indian goods entering the Russian market, including some non-tariff barriers.
Misri said significant progress has been made on this front with the cooperation of Russian counterparts. Market access in Russia has notably improved for several key products, including meat, seafood and some dairy products.