‘Peace is not only a moral imperative, it is an economic necessity’

Trade must not be sacrificed at the altar of political brinkmanship, said the representative of the Indo-Iran Chamber of Commerce and Industry here on Monday.

Syed Hakim Raza, president of Indo-Iran Chamber of Commerce and Industries, urged for restraint, dialogue, and a return to diplomacy. “Peace is not only a moral imperative, it is an economic necessity. Let reconstruction, cooperation, and shared prosperity define the path forward,” he told The Hindu.

Mr. Raza said, “India and Iran are ancient civilisations with complementary economies and a history of pragmatic engagement.” “We extend our deepest sympathies to those who have lost loved ones or livelihoods in this conflict and reiterate our commitment to restoring business confidence on both sides,” he said.

Close to 9 million

According to Mr. Raza, the human and economic fallout of the conflict was staggering. More than 8 to 9 million Indians reside in Gulf Cooperation Council countries, with additional large Indian communities in Iran, Iraq, Turkey, and Azerbaijan.

“Disruptions to airspace, shipping lanes, and employment markets directly impact millions of Indian families dependent on remittances,” he observed.

Reconstruction needs in a post-conflict Iran alone could generate tens or even hundreds of billions of dollars in economic activity over time. If even 5%-10% of that economic opportunity were to involve Indian participation in infrastructure, pharmaceuticals, agriculture, energy, and engineering services, it would represent a transformative boost for Indian industry and employment, he said.

Bilateral trade

For decades, India-Iran trade/friendship and cultural exchange was both strategic and mutually beneficial. The bilateral trade once touched approximately $17–18 billion annually, supported largely by Iranian crude oil exports to India at favorable and discounted pricing structures. In return, India exported substantial volumes of basmati rice, tea, pharmaceuticals, machinery, and engineering goods to Iran.

“However, sanctions and escalating geopolitical confrontations reduced trade to nearly $2–3 billion in recent years, representing a sharp contraction of nearly 80%-85%. The economic cost of political confrontation has therefore already been enormous, even before the present crisis,” he lamented.

The assassination of Ayatollah Ali Khamenei, Supreme Leader of the Islamic Republic of Iran, marked a dangerous and destabilising moment for the region and the global economy, Mr. Raza said, adding such an act crossed a major geopolitical red line and risks pushing West Asia into prolonged instability.

“For India, a nation deeply connected to the region through energy security, trade, and an extensive diaspora, the consequences are immediate and profound,” he cautioned.