This article covers trade and economic links between India and Iraq: the value and direction of trade, the central role of crude oil, the goods India exports, projects carried out by Indian companies in Iraq, and recent trade fairs and delegations. It draws only on the Ministry of External Affairs (MEA) bilateral brief of June 2026.

Trade figures

According to the MEA brief of June 2026, the economic and trade relations between India and Iraq slowed down after the invasion of Iraq in 2003. Total bilateral trade has grown steadily since 2010, mainly due to increasing crude oil imports.

The brief gives these figures for the two most recent financial years:

  • FY 2025-26: total trade of US$ 27.51 billion, including imports worth US$ 24.55 billion (-15.03%) and exports worth US$ 2.958 billion (-9.68%)
  • FY 2024-25: total trade of US$ 33.36 billion, including imports worth US$ 30.01 billion and exports worth US$ 3.354 billion

The brief attributes a decline of 14.46% in bilateral trade in FY 2025-26, compared with the previous financial year, to regional conflicts in June 2025 and February-April 2026. As of the brief, Iraq is the 7th largest trade partner of India.

Crude oil

The brief describes Iraq as the most significant partner for India's energy sector since 2017. Iraq was the largest supplier of crude oil to India from 2017 to 2022. Since the Russia-Ukraine war, it has become the second largest supplier of crude oil to India.

Crude oil is the mainstay of India-Iraq trade relations and accounts for over 95% of total bilateral trade. Iraq supplied 47.11 MMT of crude oil to India during the financial year 2025-26, which accounts for 19.16 % of India's total oil imports in value. India is the second-largest importer of Iraqi oil after China.

Iraq's State Organization for Marketing of Oil (SOMO) is closely engaged with Indian public sector oil companies, namely IOCL, HPCL and BPCL. An Iraqi Oil Ministry delegation attended the 9th Asian Ministerial Energy Roundtable in Bengaluru in February 2023, and India Energy Week, at the invitation of India's Minister of Petroleum and Natural Gas. The Iraqi Oil Minister's June 2023 visit for the Joint Commission Meeting is described in the relations article.

In addition to crude oil in bulk, India imports commodities such as raw wool and Sulphur from Iraq.

Indian exports to Iraq

Indian exports to Iraq consist of cereals, iron and steel, meat and meat products, pharmaceutical products, agro chemicals, cosmetics, rubber manufactured products, paints, gems and jewellery, ceramics, manufactures of metals, machine tools, electrical machinery and instruments, transport equipment, electronic goods, handicrafts, sugar, tea and garments.

The brief notes that a significant volume of exports takes place through Dubai and other destinations.

Projects by Indian companies

The brief lists the following projects:

  • SEPC Ltd. (formerly Mokul-Shriram JV) was reallocated a US$ 235 Million project in December 2012 to build the Al Qibla sewerage system in Basra, which was completed in June 2023.
  • Transformers & Rectifiers India Ltd. (TARIL) won a contract in March 2025 to supply electrical transformers to AI Sabha group. The project is ongoing.
  • Shapoorji Pallonji Group constructed a hotel project in Basra funded by the Ministry of Youth and Sports.
  • Bharat Heavy Electricals Ltd (BHEL) won an order for a compressor package for the Baiji Refinery, placed by Northern Refineries Company (NRC), a national oil refinery company owned by Iraq's Ministry of Oil.
  • BHEL has also executed a turnkey order for the construction of the 4x125 MW gas turbine-based Sulaymaniyah Power Project.
  • Kalpataru group has recently undertaken a $ 60 million power transmission lines project in southern Iraq.

Trade fairs and delegations

Recent trade promotion activity recorded in the brief includes:

  • an Indian pavilion at the 49th Baghdad International Fair, held from 1-7 February 2026 under the sponsorship of FIEO, with 22 companies and about 40 Indian businessmen
  • participation by Indian companies HPL and Oswal cables in the 11th International Iraq Energy Exhibition and conferences in Baghdad, 10-12 January 2026
  • an Indian pavilion at the 5th Health Expo in Baghdad, 18-21 September 2025, sponsored by ETSIPL, with 28 Indian companies from the health sector
  • participation by Redington, Birla Cables and TJDEED Technologies in ITEX 2025 in Baghdad
  • participation by about a dozen Iraqi businessmen in Indusfood-2025 in Greater Noida, 8-10 January 2025
  • participation by eight Indian companies in the Iraq International Exhibition for Marble, Alabaster and ceramics at the Baghdad Fair Ground, 12-15 December 2024
  • a visit by more than 20 multisectoral Indian companies to Erbil and Sulaymaniyah under FIEO sponsorship in June 2024
  • a meeting on 23rd May 2024 between an India Oil Delegation from IOCL and GAIL and Iraqi oil officials, including Dr. Ezzat Sabir Ismail, Deputy Minister for Gas Affairs
  • participation by about 20 Indian construction companies in the Erbil Construction Trade Fair in May 2024
  • an India pavilion at the 47th Baghdad International Fair, 10-19 January 2024, sponsored by FIEO, with 47 companies and about 100 Indian businessmen

The brief also notes that Iraqi pharmaceutical companies take part in trade promotion events in India.