SOURCE :- SIASAT NEWS
US Treasury Secretary Scott Bessent on Monday, August 24, warned countries and businesses that they could face US sanctions if they continue maintaining economic ties with Tehran.
Terming it “Operation Economic Outcast,” the US unveiled a fresh wave of sanctions on Iran, stating the goal is to cut every single economic lifeline supporting the Iranian government until it stands alone. Bessent claimed that US President Donald Trump was calling up leaders around the world, requesting them to stop their trade deals with Iran.
The proposed sanctions have sparked concern among Indian exporters, who anticipate a greater impact on their shipping operations.
The US sanctions have so far impacted four India-based companies and three Indian nationals over their “involvement” in Iran’s petroleum and petrochemical trade.
Portease Partners LLP, Sadashiva Overseas Ltd, PP Softtech Pvt Ltd, and Prakrutees Infra Impex India Pvt Ltd were the companies sanctioned by the US. The three Indian nationals are Harish Ramchandra Rangi and Indrismiya Ashrafmiya Shekh, two designated partners of Portease and Prashant Garg of PP Softtech.
The State Department said the companies and individuals knowingly engaged “in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petrochemical products from Iran,” which is why they were sanctioned.
India among top ten import, export partners of Iran
India ranked eighth in Iran’s list of top export partners and fifth in the list of import partners, demonstrating the long-standing economic ties between the two nations.
Aside from brief, limited windows, historically, Iran was one of India’s top crude oil suppliers, with the latter largely halting direct Iranian oil imports after 2019 due to earlier US sanctions.
Indian exporters have already expressed fear over the sanctions, predicting it could severely disrupt major Indian exports to Iran. The United Arab Emirates last week announced the suspension of all trade activities, financial transactions and exchanges with Iran indefinitely amid the US’ declaration of Economic D-Day against Tehran.
Indian exporters claim that the US Operation Economic Outcast can further restrict trade that is already strained by shipping limitations, banking caution and sanctions.
“We are already seeing indications that transactions and payment mechanisms traditionally routed through the UAE are exploring alternative jurisdictions,” Dev Garg, vice president of the Indian Rice Exporters Federation, told Reuters.
Data from the first half of 2026 shows India exported 383.11 million of rice to Iran, making it the second-largest overseas market for premium rice, not excluding basmati rice.
According to Garg, any prolonged disruption in this corridor can have a “much greater bearing on the basmati industry”, particularly on millers and exporters in northern India, than on India’s non-basmati rice trade.
How UAE sanctions on Iran are affecting India
The other major Indian shipment to Iran, tea, reached USD 4.34 million during the first half of 2026. Prabhat Bezboruah, a prominent tea planter and former Tea Board chairman, noted that future sales face disruptions due to heavy reliance on UAE transit routes.
Indian tea exports to Iran totalled USD 14.34 million in the first half of 2026. Bezboruah said sales to Iran will be affected, as a lot of that goes through the UAE.
Although there has been no response from India’s trade and foreign ministries on the sanctions or the future of its shipments, Ajay Srivastava of a New Delhi-based economic research group told Reuters that direct shipments could increase, while payment issues may worsen.
Srivastava said that India’s Iran trade has already seen a sharp fall following the earlier sanctions. “We hope food and pharmaceutical products may receive exemptions, although exporters could still face higher freight, insurance and payment costs,” he said.
SOURCE : SIASAT
