Chapter 8: India and Iran Trade: Issues and Challenges

India and Iran historically share centuries-old strong socio-cultural and trade relations since ancient times. The chapter explores emerging opportunities and challenges in trade and investment in the present era. While Iran is one of the leading producers and exporters of oil, India, a major market for hydrocarbons, is heavily dependent on imports to meet its domestic requirements. This offers trade complementarities between the two countries as India is a secure market for Iran’s oil whereas Iran facilitates India to decrease its over-dependence for oil on Saudi Arabia. This chapter discusses the mutually beneficial trade relationship as well as potential for further deepening the existing economic ties between these two ancient civilizations that could offer a win-win situation for both countries.