**Modi Discusses Trade and Regional Stability with Iranian President at SCO Summit**
In a significant meeting on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Bishkek, Kyrgyzstan, Indian Prime Minister Narendra Modi engaged in discussions with Iranian President Masoud Pezeshkian regarding the future of trade relations between their nations. The meeting, which took place on Monday, marked the first in-person dialogue between the two leaders since the escalation of conflict in the Middle East earlier this year.
Prime Minister Modi expressed India's intention to "expand and diversify" its trade relations with Iran, emphasizing the importance of strengthening the long-standing friendship between the two countries across various sectors. In a post on social media platform X, Modi stated, "We want to expand and diversify our trade basket in the times to come."
This discussion comes at a time when India’s trade with Iran has significantly declined, dropping over 90% from approximately $17 billion in the 2018-19 fiscal year to an estimated $1.6 billion for the financial year ending March 2026. The reduction in trade has been largely attributed to increased economic sanctions imposed by the United States, which have sought to isolate Iran economically through measures such as Operation Economic Outcast. Under this initiative, the U.S. Treasury Department has indicated it will enforce timelines for countries to cease Iran-related activities, with potential secondary sanctions for non-compliance.
Despite these challenges, India remains one of Iran's five largest trading partners. However, the current state of bilateral trade primarily involves goods that are exempted for humanitarian reasons. Modi's remarks reflect a desire to revitalize this relationship amidst a backdrop of geopolitical tensions.
During their meeting, Modi and Pezeshkian also addressed the ongoing conflict in the Middle East, which has seen renewed violence following U.S.-Israeli military actions against Iran. Modi expressed concern over the escalating tensions and reiterated India's stance that all issues should be resolved through dialogue and diplomacy. The Indian Foreign Ministry confirmed that Modi emphasized India's commitment to supporting efforts aimed at achieving lasting peace in the region.
In light of the conflict, Modi highlighted the necessity of safeguarding freedom of navigation and commerce, particularly in vital maritime routes such as the Strait of Hormuz. He underscored the importance of protecting civilians and civilian infrastructure, including commercial shipping and seafarers, from harm. Since the beginning of hostilities in February, ten Indian seafarers have reportedly lost their lives due to attacks on commercial vessels in the area.
Looking ahead, Modi expressed anticipation for Pezeshkian's visit to India for the upcoming BRICS Summit in New Delhi scheduled for September. The meeting also included Iranian Foreign Minister Seyed Abbas Araghchi, indicating a collaborative approach to addressing regional issues and enhancing bilateral relations.
As the geopolitical landscape continues to evolve, India's efforts to strengthen its ties with Iran may play a crucial role in navigating the complexities of trade and diplomacy in the region.