Archive · 1 Sep 2026
Modi signals expanded Iran trade amid renewed US sanctions
India’s Prime Minister Narendra Modi met Iran’s President Masoud Pezeshkian in Bishkek.
Modi said India wants to trade more goods with Iran.
This happened soon after the United States announced a major economic campaign against Iran.
Trading with Iran is difficult because of sanctions and problems involving money, insurance and transportation.
India’s trade with Iran has fallen sharply in recent years.
The two leaders also discussed peace and avoiding more war in the region.
Modi separately met Russian President Vladimir Putin.
They talked about India buying much more from Russia and trying to sell more Indian products there.
Narendra Modi said India wants to expand and diversify trade with Iran during talks with Masoud Pezeshkian in Bishkek.
The comments came seven days after the United States launched Operation Economic Outcast against Iran and its enablers.
India-Iran trade fell from $17.03 billion in 2018-19 to $1.63 billion in 2025-26 amid US sanctions.
Foreign Secretary Vikram Misri said India would explore feasible trade options while considering finance, insurance, transport and logistics constraints.
Modi and Vladimir Putin also discussed India’s growing trade deficit with Russia and progress on market access for Indian exports.
- Who
- Indian Prime Minister Narendra Modi and Iranian President Masoud Pezeshkian; Modi also met Russian President Vladimir Putin.
- What
- Modi expressed India’s intention to expand and diversify trade with Iran and discussed regional peace, while also addressing trade with Russia.
- When
- Monday; the Iran meeting occurred seven days after the United States launched Operation Economic Outcast. The Chabahar sanctions waiver ended on April 26 this year.
- Where
- Bishkek, Kyrgyzstan.
- Why
- India and Iran are exploring ways to maintain cooperation despite sanctions, while India is also seeking to reduce its trade imbalance with Russia.
India and Iran’s cooperation position
United States sanctions position
Future trade
India and Iran’s cooperation position
India wants to expand and diversify trade with Iran by exploring options that remain feasible under existing constraints. Iran says stronger cooperation and efforts to neutralize sanctions’ effects can elevate bilateral relations.
United States sanctions position
The United States has launched a whole-of-government economic campaign against Iran and its enablers, increasing the risks and constraints surrounding such trade.
Chabahar Port
India and Iran’s cooperation position
India says it remains in discussions with stakeholders to find a sustainable way forward for its association with Chabahar, citing the port’s regional importance.
United States sanctions position
The United States ended the sanctions waiver for Chabahar Port, forcing India to withdraw from managing the facility.
Regional conflict
India and Iran’s cooperation position
India said it would support efforts toward lasting peace, while Pezeshkian urged India to use its contacts to encourage dialogue and an end to war and bloodshed.
United States sanctions position
The article describes the United States’ economic measures against Iran but does not state a separate US position on the peace appeal.
- India-Iran trade
- Trade declined from $17.03 billion in 2018-19 to $1.63 billion in 2025-26.
- US campaign
- Operation Economic Outcast was launched seven days before Modi’s meeting with Pezeshkian.
- Trade constraints
- India’s officials cited finance, insurance, transport and logistics as factors affecting trade with Iran.
- Chabahar Port
- The United States’ sanctions waiver ended on April 26 this year, requiring India to withdraw from managing the port.
- India-Russia trade
- Modi and Putin discussed India’s growing trade deficit, particularly after increased Russian crude purchases.
- Russian market access
- India reported progress for meat, marine and dairy product exports to Russia.