摘要：AbstractGlobalization has not only brought the whole world into a global village but it has also paved the way of various countries to trade with each other. Common culture, language, religion and traditions along with economical ‘Comparative Advantage’ have always been the deciding factors for countries to collaborate with each other. India and Iran trade relations are based on the comparative advantages of different economic capabilities and due to this principle an escalating prosperity and an increasing trade volume by trading with each other can be achieved. In this paper, the trade relations between Iran and India have been assessed from 2001 to 2010.The findings show that mineral fuels form larger part of Indian imports from Iran and also India's exports to Iran include inorganic chemicals, articles of iron or steel, drugs and pharmaceuticals. Consequently, comparative Advantage leads to economic growth.
