India-Iran trade declined a sharp 79.4 per cent in the first eight months of the current fiscal to $3.5 billion from $17 billion in the comparable period last year after the lapse of the oil sanction waiver extended by the US to India.

Escalating tension between Iran and the US after the recent killing of Iranian general Qasem Soleimani in a US drone attack could hurt trade further as India’s exports to Iran, which have sustained despite the economic sanctions, could now take a hit. This is true especially with the balance in the rupee-rial account running out, fear exporters.

Read more on The Hindu BusinessLine.