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Iran Crisis: Iran is currently facing one of its biggest periods of turmoil and unrest as people in the Middle Eastern country took to the streets to protest against the Ayatollah Ali Khamenei-led government amid the ongoing tensions with the United States. Protests have intensified across the country, pushing it into a period of political and economic uncertainty. The unrest is somehow affecting India too, as any instability there is directly linked to India’s strategic and trade interests. But how could increasing unrest in the Middle Eastern country pose a threat to India? Let’s understand.
The massive protests began in the Middle East country at the end of December last year. Initially, the protests were held regarding inflation, unemployment, and the continuously falling Iranian currency against the dollar, but later they transformed into challenging the Khamenei regime. As per several reports, over 75 people were killed in the riots.
Currently, the situation has intensified to the extent that the Iranian government has closed the internet and mobile services across the country.
Notably, India has invested a huge amount of money in projects that focus on boosting its access to Central Asia, Russia and Europe. Among these projects, the most significant is Chabahar Port on Iran’s southeastern coast. This port provides New Delhi a direct route to Afghanistan and Middle East countries, bypassing its archenemy – Pakistan.
• Iran is witnessing intense anti-government protests against Khamenei regime.
• The protests are pushing Iran into political and economic uncertainty amid tensions with US.
• Any escalation of unrest in Iran could directly impact India’s strategic and commercial interests.
• India–Iran trade stood at around USD 1.68 billion in FY2024–25.
• Instability for long time could slow operations at Chabahar Port and disrupt trade routes.
As per the Department of Commerce data, the trade relation between India and Iran is good and reached approx USD 1.68 billion in FY2024-25 (April 2024-March 2025). Out of this, New Delhi exported goods worth USD1.24 billion. However, the import is very less as compare to the export, settled at USD0.44 billion.
If the Iran crisis further escalates, the trade operations between Chabahar port are expected to slow down. This could also affect the trade movement via INSTC.
It is to be noted that India has become one of Iran’s five largest trading partners. Goods that are exported from India to the Middle East country include rice, tea, sugar, pharmaceuticals, synthetic fibers, electrical machinery, artificial jewelry.
On the other hand, India imports dried fruits, inorganic/organic chemicals, and glassware from Iran.
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