Iran’s President Visits India for Trade and BRICS Talks
On 11 September, Iranian President Masoud Pezeshkian arrived in New Delhi for a high‑level meeting with Prime Minister Narendra Modi. The visit, his first to India since taking office, placed trade, investment and BRICS economic cooperation at the forefront of the bilateral agenda.
### Bilateral Focus: Trade, Investment and Maritime Security
The Prime Minister’s Office said the leaders discussed a range of issues, from expanding the trade basket to safeguarding freedom of navigation and the safety of seafarers. Modi reiterated India’s desire to diversify imports from Iran, a point echoed by Pezeshkian who highlighted potential investment in the Chabahar Port and broader regional connectivity.
### BRICS Business Forum: Local‑Currency Finance
During the BRICS Business Forum in New Delhi, Pezeshkian called for greater use of national currencies in intra‑bloc trade and a larger financing role for the New Development Bank. He proposed local‑currency credit lines and guarantee mechanisms for infrastructure and energy projects, aligning with the bloc’s discussions on cross‑border payment interoperability.
### Trade Numbers: A Humanitarian Profile
India’s merchandise trade with Iran stood at $1.145 billion between April and December 2025, comprising $883.10 million in exports and $262.19 million in imports, according to the Commerce Ministry. The trade mix is largely humanitarian, featuring agricultural products and pharmaceuticals. Shipping disruptions linked to the Iran conflict have also affected Indian exports such as rice, tea and medicines.
### Pakistan’s Mediation and Trade Ambitions
The backdrop of this visit is Pakistan’s active mediation in Iran‑US talks. Islamabad hosted the Iran‑US negotiations in April, leading to the Islamabad Memorandum of Understanding in June and a roadmap for further talks in Switzerland. Pakistan’s foreign ministry noted that sanctions remain a constraint on economic projects, but progress will depend on the pace of sanctions relief.
Pakistan and Iran have set a target of $10 billion in bilateral trade by 2028, a goal discussed during Pezeshkian’s August visit to Islamabad and reiterated in June 2026.
### Overlapping Yet Distinct Engagements
India’s engagement with Tehran is largely centred on bilateral commerce, maritime security, investment, and BRICS‑led economic initiatives. Pakistan, meanwhile, combines trade and border ties with a prominent diplomatic role in the Iran‑US dialogue. Both countries therefore maintain separate but overlapping avenues of cooperation with Iran.
What to Watch
- The pace of sanctions relief on Iran and its impact on trade and infrastructure projects. - Potential expansion of Indian investment in Chabahar and other regional connectivity initiatives. - Future BRICS agreements on local‑currency financing and the New Development Bank’s role. - Progress in the Iran‑US diplomatic process, especially any new agreements stemming from the Islamabad MoU.
These developments will shape the trajectory of India‑Iran economic relations and the broader regional security environment.