Prime Minister Narendra Modi met Iranian President Masoud Pezeshkian on the sidelines of the Shanghai Cooperation Organisation summit in Kyrgyzstan on Monday and said that both the countries want to “expand” and diversify” their trade basket in the future.
This was the first meeting between the two leaders in two years and also since the ongoing war between the United States and Iran erupted earlier this year.
Sharing a glimpse from the meeting, Modi wrote on X that both the leaders discussed ongoing tensions in the West Asia region which have the entire world in a chokehold and said that India will support all peace efforts.
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“Met President Masoud Pezeshkian in Bishkek. Reiterated our commitment to strengthening India’s long standing friendship with Iran across diverse sectors. We want to expand and diversify our trade basket in the times to come,” the Prime Minister wrote.
“We had a discussion on the prevailing situation in the region. India will continue to support all efforts aimed at ensuring lasting peace,” he added.
Indian firms sanctioned for trade with Iran
{{/usCountry}}“We had a discussion on the prevailing situation in the region. India will continue to support all efforts aimed at ensuring lasting peace,” he added.
Indian firms sanctioned for trade with Iran
{{/usCountry}}Iran and India have been longstanding trade partners. Modi’s post on diversifying and expanding trade with Iran comes a week after the US Treasury Department announced new sanctions targeting Iran’s economy, which included four Indian firms among those sanctioned for importing Iranian petroleum and petrochemical products.
Also read: Four Indian firms among those sanctioned by US for Iran oil trade amid ‘Operation Economic Outcast’
The sanctions came a day after US Treasury Secretary Scott Bessent announced a campaign — ‘Operation Economic Outcast’ — aimed at cutting off Iran’s sources of revenue and increasing the risk of secondary sanctions for entities doing business with Iran.
The four India-based firms that faced sanctions included customs broker Portease Partners LLP and its partners, Indrismiya Ashrafmiya Sheikh and Harish Ramachandra Rangi. According to the State Department, Portease “facilitated the import of multiple shipments of Iranian petrochemical products to India.”
India-US trade deal stuck?
Even as the trade deal between India and the United States remains under works, there has been little progress in the last month. In July, the commerce ministry said that India’s engagements with the US Trade Representative (USTR) helped secure a lower tariff for Indian goods.
It had also said that both nations were seeking an “early conclusion” of the planned bilateral trade agreement. However, there has not been any update since.