US President Donald Trump has warned countries, financial institutions and businesses against providing Iran with what he called an “economic lifeline”, saying those that continue supporting Tehran could face “TREMENDOUS” economic consequences.

Trump’s warning comes as the United States steps up economic pressure on Iran. For India, the development could have implications for exporters, particularly those shipping agricultural products, food items and pharmaceuticals to the Iranian market.

India’s trade with Iran has already declined sharply over the years. However, Indian exporters continue to maintain a trade surplus with Tehran, making the potential impact of tighter US sanctions an issue to watch.

What did Trump say about Iran?

Trump has announced what he described as the “most crushing economic operation” against Iran and said the US would pursue economic warfare and isolation against Tehran.

His warning extends beyond Iran itself. Trump said countries, financial institutions and businesses that provide Tehran with financial or commercial support could face severe consequences.

The activities cited in his warning include oil smuggling, cash transfers, currency swap lines, exchange houses, ship registries and front companies.

“This will be an ECONOMIC D-DAY, and we need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat,” Trump said.

He also warned that countries allowing their financial institutions, businesses, airports or government entities to support Iran could face “TREMENDOUS Economic Consequences”.

How much does India trade with Iran?

India remains an important trading partner of Iran, although bilateral trade has fallen significantly from previous levels.

According to data from the Indian Embassy in Tehran cited in the report, India’s exports to Iran stood at $1.25 billion in 2025-26, while imports from Iran were around $370 million. This gave India a trade surplus of approximately $880 million.

The scale of bilateral trade is considerably smaller than it was several years ago.

In 2018-19, India-Iran trade was worth $17.03 billion. India’s imports from Iran stood at $13.53 billion that year, while exports were $3.51 billion.

By 2024-25, total bilateral trade had fallen to $1.68 billion.

This sharp decline means India’s overall economic exposure to Iran is now relatively limited compared with the size of the Indian economy. However, businesses that continue to depend on the Iranian market could still face difficulties if US sanctions and enforcement are tightened.

What does India export to Iran?

India’s trade relationship with Iran extends beyond energy.

Major Indian exports to Iran include:

• Basmati rice
• Tea
• Sugar
• Fresh fruits
• Drugs and pharmaceuticals
• Spices
• Cereals and other food products

Iran also exports products including pistachios, dates, apples and kiwis to India.

Any disruption to this trade could therefore affect businesses involved in agricultural products, food items and pharmaceuticals.

Why could Trump’s warning affect Indian exporters?

The immediate risk is not necessarily that India’s entire trade with Iran will stop.

Instead, Indian exporters could face greater difficulties with payments, shipping and logistics if the US expands sanctions or increases enforcement against businesses and financial institutions dealing with Tehran.

Shipping disruptions and higher freight costs could add to the pressure. The Strait of Hormuz remains a key pressure point, while vessel rerouting, elevated freight rates and tighter container availability can increase the cost and complexity of international trade.

For exporters with direct exposure to Iran, such disruptions could make shipments more expensive and payments more complicated.

India’s exports are finding other markets

India’s broader export performance provides some cushion against a potential slowdown in trade with Iran.

India’s merchandise exports reached a record $44.24 billion in July, representing a 19.6 per cent increase from a year earlier, according to the figures cited in the report.

Engineering goods exports rose 17.7 per cent to $12.24 billion, while electronics exports jumped 57.4 per cent to around $5.9 billion.

Exports to the Middle East also increased 8.6 per cent to $5.7 billion.

India has also been expanding its trade across several other markets. In July, exports to China increased 64.57 per cent year-on-year to $2.2 billion, while shipments to Singapore rose 83.7 per cent to $1.6 billion.

Exports to the US increased 12.85 per cent to $9.02 billion.

The diversification of India’s export markets could help businesses reduce their dependence on individual markets if geopolitical tensions disrupt trade with Iran.

Will Trump’s Iran warning hurt India?

Trump’s warning could affect Indian exporters doing business with Iran through higher shipping costs, payment complications and weaker demand if economic pressure on Tehran intensifies.

The impact is likely to be more significant for businesses with direct exposure to the Iranian market than for the Indian economy as a whole.

India-Iran trade has already contracted substantially from its earlier levels. With Indian exporters increasingly accessing markets across regions including ASEAN, Africa, South Asia and North-East Asia, India may be better placed to absorb the impact of any further disruption in Iran trade.

Indian Army Chief General Dhiraj Seth on Tuesday met Nepal Prime Minister and Defence Minister Balendra Shah in Kathmandu, with the two sides discussing matters of mutual interest and ways to strengthen military-to-military relations.

The meeting took place at the Office of the Prime Minister and Council of Ministers in Singha Durbar. Indian Ambassador to Nepal Naveen Srivastava was also present.

According to sources at the Prime Minister’s secretariat, discussions focused on bilateral interests and strengthening military relations between the two neighbouring countries.

General Dhiraj Seth’s Nepal visit

General Seth is on a four-day official visit to Nepal at the invitation of Nepal Army chief General Ashok Raj Sigdel. During the visit, he was conferred the honorary rank of General of the Nepali Army by President Ramchandra Paudel at a ceremony on Monday.

India and Nepal have followed a longstanding tradition since 1950 of conferring the honorary rank of General on each other’s army chiefs. The practice reflects the reciprocal military ties between the two countries.

General Seth also held bilateral talks with General Sigdel at the Nepal Army Headquarters on Monday. The discussions covered matters of mutual interest.

On Tuesday, General Seth also offered prayers at the Pashupatinath Temple in Kathmandu, according to Nepal Army sources.

India-Nepal ties amid border concerns

The meeting comes amid some unease in relations between India and Nepal, including differences over the Lipulekh, Limpiyadhura and Kalapani areas.

Earlier this year, Nepal Prime Minister Balendra Shah said in Parliament that he had learnt about Nepal’s territories being “encroached” upon by India. He also said Kathmandu was discussing the longstanding border issue with India and was in contact with China and the UK.

New Delhi subsequently rejected any role for third parties in resolving the India-Nepal boundary dispute.

Nepal and India have traditionally maintained close political, economic and people-to-people ties. Shah has not yet visited either India or China as prime minister, while Nepal’s Foreign Minister Shisir Khanal visited New Delhi and Beijing in June.

Earlier this month, Shah also held a one-on-one meeting with Indian Ambassador Naveen Srivastava and stressed the importance of strengthening Nepal’s historic relationship with India.

The Indian Embassy in Kathmandu said General Seth’s visit reaffirmed the “unique and time-tested defence relations” between India and Nepal, rooted in shared values, mutual trust and longstanding military-to-military ties.

India’s High Commissioner to Bangladesh Dinesh Trivedi met Prime Minister Narendra Modi in New Delhi on Tuesday, a day after his meeting with Bangladesh Prime Minister Tarique Rahman in Dhaka.

According to the High Commission of India in Bangladesh, Trivedi sought PM Modi’s guidance on further strengthening the bilateral relationship between India and Bangladesh through a constructive and people-centric approach.

The meeting came a day after Trivedi held discussions with Tarique Rahman on matters of mutual interest and ways to advance ties between the two neighbouring countries.

Dinesh Trivedi Meets Bangladesh PM

During his meeting with Tarique Rahman on Monday, Trivedi conveyed greetings from Prime Minister Modi and reiterated India’s commitment to working with the Bangladeshi administration and its people in a positive, constructive and forward-looking manner.

The two sides discussed issues of mutual interest and explored avenues for strengthening India-Bangladesh relations with a people-centric approach.

The engagement took place at the Prime Minister’s Office in the Cabinet Division at the Bangladesh Secretariat. Trivedi also shared his experience of serving in Dhaka over the previous two months.

Sheikh Hasina Extradition Request

The meeting assumed significance as Bangladesh has expressed hope that India will expedite the extradition process involving former Prime Minister Sheikh Hasina, who was ousted following a student-led uprising in 2024.

According to a statement issued by the Bangladesh Prime Minister’s Office, Dhaka also reiterated its request for India to return individuals it alleges were involved in the killing of Shahid Osman Hadi, a prominent figure associated with the July uprising who was shot on December 12, 2025.

Tarique Rahman stressed the need to create a suitable environment to take forward relations between Bangladesh and India.

Bangladesh Foreign Minister Khalilur Rahman, Prime Minister’s Foreign Affairs Adviser Humayun Kabir and other officials attended the meeting.

India-Bangladesh Ties Amid Diplomatic Friction

The latest high-level engagements come amid diplomatic tensions between the two countries following a virtual press interaction by Sheikh Hasina in New Delhi on August 5.

The event, organised by the Foreign Correspondents’ Club of South Asia to mark the second anniversary of her ouster, prompted strong objections from Dhaka.

During the interaction, Hasina said she remained determined to return to Bangladesh in December and restore democracy, while acknowledging the possibility of imprisonment or a death sentence upon her return.

Bangladesh’s Ministry of Foreign Affairs subsequently registered a strong protest and said the development had affected public sentiment and complicated efforts to strengthen bilateral cooperation.

India has said the government had no involvement in the event. Ministry of External Affairs spokesperson Randhir Jaiswal said it was organised by a private media entity and clarified that New Delhi did not endorse views expressed at the forum.