Surging India-Iran Air Freight: Risk of 'Collateral Damage' from Proposed US 25% Tariffs

(Photo: Phaata)

India’s air cargo sector is facing new headwinds as US President Donald Trump’s proposal to levy a 25% tariff on nations trading with Iran risks disrupting rising trade routes. This tariff proposal comes just as air freight activity from India to Iran has skyrocketed, recording a growth of nearly 200% over the past five years. In fact, India has ranked among Iran’s top five trading partners in recent years.

The Boom in India-Iran Air Routes

Data from India's Directorate General of Civil Aviation (DGCA) shows that air shipments from India to Iran stood at 563 tonnes in 2023 but jumped to nearly 1,200 tonnes in just the first nine months of 2025 (January – September). This growth rate is impressive compared to the 661 tonnes recorded for the full year of 2021; cargo volumes have nearly doubled in just a few years thanks to stronger cooperation between the two nations.

While Chabahar Port took center stage last week as a crucial alternative trade route between India and Afghanistan, air freight also plays a pivotal role, particularly in transporting pharmaceuticals, tea, and rice as part of humanitarian aid.

Freight forwarders are now even offering 3-day express and 6-day standard services for parcels and commercial goods such as textiles, machinery, and food between the two countries.

According to the Indian Embassy in Tehran, India's major exports include rice, tea, sugar, pharmaceuticals, man-made staple fibers, electrical machinery, and artificial jewelry; while imports from Iran mainly consist of dry fruits, organic/inorganic chemicals, and glassware.

The Tariff Specter and Forwarder Concerns

Members of the Federation of Freight Forwarders’ Associations in India (FFFAI) believe that Trump’s move could negatively impact India, a nation already facing increased tariffs on exports to the US. The imposition of additional tariffs would adversely affect bilateral trade, undermining the competitiveness of Indian products in the US market and increasing costs for exporters.

Speaking to the Times of India (TOI) on this issue, Mr. S. Anil Kumar, Vice Chairman of FFFAI, stated:

"Hyderabad is one of the major contributors of pharmaceutical exports to Iran, while rice shipments from Andhra Pradesh also form a significant part of this trade. Trump's policy moves are therefore expected to have a substantial impact on India. Given India's strong trade and cultural ties with Iran, such measures could deal a blow to Indian exporters and disrupt long-standing economic relationships."

Paradox in the US Market

In stark contrast to the vibrancy of the Iran route, air cargo volumes from India to the United States have plummeted to a 9-year low. DGCA data reveals that cargo traffic to the US dropped to approximately 6,100 tonnes in 2025, the lowest level since 2016.

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Source: Phaata.com (According to Times of India)

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