Israel outweighs Iran in trade with India since 2019, shows data

India's exports to Iran dropped to $1.2 billion as of December 2023, on a rolling 4-quarter basis. India's exports to Israel grew to $6.1 billion in the same period

Trade links with Israel have strengthened in the past few years, even as the value of goods exchanged with Iran has diminished.

Iran accounted for $3.9 billion worth of India’s exports in the four quarters ending December 2019, compared to $3.6 billion to Israel. However, India’s exports to Iran dropped to $1.2 billion as of December 2023, on a rolling four-quarter basis, while exports to Israel grew to $6.1 billion in the same period.

 

In February 2024, India imported $126.8 million worth of manufactured goods from Israel. Other exports included pearls, precious and semi-precious stones ($55 million), and other manufactured goods such as handicrafts, sports goods, automobile tyres, tubes, and other rubber products worth $57.2 million in the same month.

From Iran, the top imported goods remain agricultural and allied products ($29 million), of which fresh fruit accounted for $28.2 million. Manufactured goods accounted for $19 million.

Iran’s imports, which totalled over $10 billion in 2019, have since fallen to less than $1 billion, while imports from Israel have increased during this period.

 

The trade balance, the difference between the value of imports and exports, has become more favourable for India with both countries.

India’s exports to Israel were around $2 billion more than imports in December 2019. This gap grew to $4 billion in December 2023. India also exports more to Iran than it imports.

On Monday, the trade secretary of India stated that the Indian government will make a policy decision to address any trade impact resulting from the conflict between Iran and Israel after thoroughly understanding its effects.

India is among Israel’s 10 largest trading partners, even as trade with Iran has decreased.

Both countries have made limited investments in India. Between April 2000 and December 2023, Israel’s foreign direct investment (FDI) in India was valued at $300 million, accounting for 0.04 per cent of the total FDI equity inflow into India.

Iran invested $1 million, according to data from the Department for Promotion of Industry and Internal Trade.