Economic and trade relations between Iran and India entered a new phase with the signing of a $ 500 million memorandum in 2015 for the development of Chabahar port; Railway investment, Iran-India-Afghanistan trilateral agreement to build international transportation corridor in Chabahar help expand ties despite US sanctions against Iran. It seems that the conclusion of a bilateral preferential trade agreement can be facilitated, given the efforts made to pave the way for the development of bilateral trade.

According to 2018 statistics, Iran's exports to India are about $ 2 billion (2.1% of Iran's total exports to the world); In contrast, including oil, Iran's share in meeting India's import needs is 2.9 percent. India is of great importance in Iran's foreign trade; Last year, it was in the sixth place of Iran's export target markets and also in the fourth place of Iranian import bases (according to statistics of the Customs of the Islamic Republic of Iran for 1398). Therefore, facilitating trade between the two countries will develop trade relations between the two countries. According to estimates, Iran's export potential to India is equivalent to $ 21 billion, which is about 88.6 percent of this potential due to current exports.

Also, 90% of these goods are intermediaries and about 10% are consumer goods, which have an average tariff of 9.5% and 28.6%, respectively; It seems that the reduction of Indian tariffs in the framework of the trade agreement could pave the way for an increase in Iran's exports to the country.

According to the agreement of high-ranking officials of Iran and India to conclude a bilateral preferential trade agreement, this report presents a list of proposals for obtaining preferential tariffs from India in order to expand Iran's exports. To determine this list, variables such as Iran's export potential to India, the value of Iran's current exports to the world, the value of Iran's current exports to India, the value of India's imports from the world, India's applied tariff rate on imports of goods, were used.

According to calculations, out of about 4,000 items (eight-digit HS), 458 items were introduced as priority goods offered for a possible preferential trade agreement between the two countries. In addition to some of Iran's current exports of goods to India, these items include items that are not exported to India, but due to Iran's export potential as well as India's basket of goods imported from the world, they are on the list. Studies show that the total export potential of these items to the Indian market is $ 6.2 billion, of which only $ 1.8 billion is currently realized, Therefore, it is predicted that obtaining preferential tariffs from Indian commodities will be the precondition for the movement of the country's economic actors to strengthen its presence in the Indian market and achieve exports worth $ 4.4 billion.