The Federation of Indian Export Organisations (FIEO) has expressed serious concern over growing tensions between Iran and the US.
FIEO chief Sharad Kumar Saraf said the escalation of tensions would have implications on India’s exports to the Persian Gulf nation.
India’s exports to the Gulf nations touched around $42 billion in 2019. They account for 12 percent of the country’s total exports.
FIEO Chief said so far exporters had not flagged any concerns related with exports to Iran.
"However, if the tension escalates, it may have an effect on India's exports to Iran," said Saraf while adding that due to existing trade sanctions on Tehran, Iranian shipping lines were only taking Indian consignments to that country.
Iran’s major exports to India are oil, fertilisers and chemicals, while it imports cereals, tea, coffee, basmati rice, spices and organic chemicals, among others. India’s exports to Iran during 2018-19 amounted to $3.51 billion, while imports were $13.52 billion.
Iranian Islamic Revolutionary Guard Corps' (IRGC) Al Quds Commander Qasem Soleimani was killed on Friday in a US drone attack near Baghdad International Airport. Iraqi Shiite militia commander Abu Mahdi al-Muhandis and 10 other people were also killed in the strike.
Washington justified the assassination of Soleimani by claiming that he was plotting sabotage against US assets in the Middle East. However, the US provided no proof of the purported plot. The Iranian side, in turn, has warned Soleimani will be avenged, prompting Trump to threaten to "quickly and fully strike back”.