India and Iran maintain a strategically significant but tension-laden relationship, shaped by centuries of civilisational connection, Iran's historical importance as India's major oil supplier, and the complicating factor of US-led sanctions. The centrepiece of modern bilateral engagement is the Chabahar Port project — India's first direct strategic infrastructure investment in a foreign port — which provides India with an Iran-circumventing overland corridor to Afghanistan and Central Asia. Iran joined BRICS in January 2024, adding a new multilateral dimension to a partnership India has navigated with characteristic independence from Western pressure.
COOPERATION AREAS
Where India and Iran actually work together
5 active areas of cooperation, as of July 2026. Click any card for the full brief.
TRADE & INVESTMENT
By the numbers
FY2023-24 estimates; figures significantly below pre-2018 sanctions peak of ~$15bn. Actual trade, including informal flows through third countries, may be higher. Oil imports partially resumed through alternative settlement mechanisms.
~$2.3bn
Total bilateral trade in goods
~$1.4bn
India exports to country
~$0.9bn
India imports from country
Trade trajectory · USD bn
$2.3bnin FY24 · click a bar to compare years
TOP TRADED ITEMS
AGREEMENTS & MILESTONES
The relationship since 1950, in 9 dates
CURRENT STATE
Where things stand, 2026
India-Iran relations are at an inflection point. The Chabahar 10-year lease signed in 2024 has anchored India's strategic connectivity investment. Iran's BRICS membership from January 2024 creates a new multilateral channel for engagement. Oil trade has partially resumed through non-dollar mechanisms. US sanctions remain the primary constraint, and the JCPOA remains unrevived. India continues to navigate the relationship with its characteristic 'strategic autonomy' — maintaining Chabahar and engagement despite US pressure, without openly defying the sanctions framework.
