US sanctions on Iran are back and India finds itself in a tricky spot. On Tuesday, the US President Donald Trump issued a warning to countries that trade with Iran. He said that anyone doing business with Iran will not be doing business with the United States. India does business with both. So what is the likely impact the sanctions will have on India?

For one, Iran is the third largest source of crude oil for India. India’s imports from Iran in 2017-18, which are dominated by petroleum, were valued at $11.11 billion while exports were worth just over $2 billion and comprised mainly of rice and tea. India has sought an exemption on these from the US government but hopes of a waiver look slim.

To add to that India has pledged an investment of $500 million dollars in Iran’s Chabahar Port which is a very crucial and strategic trade route for India, Iran, and Afghanistan.

In an interview to CNBC-TV18, Saurabh Chandra Former Oil Secretary, Meera Shankar Former Indian Ambassador - United States, and DP Srivastava Former Indian Ambassador – Iran, discussed the implications of Iran sanctions on India.