India-Iran Trade Collapses as UAE Backs US Sanctions

malayalam.oneindia.com (Malayalam)

India faces significant trade disruption with Iran following new UAE restrictions and US sanctions. Bilateral trade has plummeted from $17 billion in 2018-19 to $1.6 billion in 2025-26, with exports nearly halted. Most Indian goods reached Iran via Dubai, making UAE's decision to suspend all trade and financial dealings with Iran a major blow. Rice, tea, and pharmaceuticals were key exports, with Iran being India's second-largest rice market. Exporters now face a 90% reduction in trade and must find alternative markets. Further US sanctions on banking and shipping could completely halt India-Iran transactions, as payment channels through UAE banks are also blocked.


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