TEHRAN: Non-oil trade between Iran and India reached $2.5 billion during March 21-September 22, 2015.
Announcing this, Chairman of Iran-India Business Council (IIBC) Ebrahim Jamili told Iran Daily that in the year to mid-March 2015, the figure stood at $6.3 billion, of which $2.5 billion pertained to Iran’s exports while $3.8 billion to India’s overseas sales.
He added the figure is expected to witness a 15-percent growth by mid-March 2016. “During March 21-September 22, 2015, Iran exported goods worth $1.3 billion to India while importing commodities valued at $1.2 billion from that country.
Jamili announced that the two sides are to discuss ways to boost mutual trade ties in the next IIBC session.
“Given the July-14 nuclear deal between Iran and P5+1, bilateral economic relations have entered a new phase during which trade exchanges will witness a growth.”
Currently, he noted Iran’s banking restrictions are the main hurdle to further expansion of economic cooperation with India.
“During the period of intense sanctions, the US exerted great pressure on India to limit trade ties with Iran. The nuclear accord, however, has restored hopes for a substantial growth in this regard to both states.”
Following the removal of the embargoes, Indian firms will be provided ample opportunities to expand presence in Iranian market and use Iran’s potentials, he said, stressing that in case this opportunity is lost, they will terribly fall behind European and American companies.
“Iran and India boast long-standing cultural relations and share a great deal of commonalities. In addition, their economic and geographical features are complementary to each other and this will help boost economic collaborations.”
Lauding India’s great potentials, IIBC chairman noted the country has recently made a huge economic progress and, following China, has always ranked second among Asian countries in terms of the highest economic growth the past few years.
During the past five years, the country has registered a growth of more than 8 percent and it is predicted that it will rank among the world’s major economic powers in the near future, Jamili said.
“Iran can become a favorable trade partner for India given its unique economic advantages and proximity. Increased trade with New Delhi will be highly lucrative for Tehran.”
He disclosed that Indian companies have shown interest in investing in Chabahar port in Sistan-Baluchestan Province, adding development of the port will help reduce transportation costs significantly for the two countries.
Currently, he pointed out, Jebel Ali port in the UAE is India’s sole access to international markets, adding this is while, Chabahar port will be a more suitable option for Indian ships to access Iranian and Afghan markets via sea.
“In addition, India can use Iranian highway system to send products to Central Asian states.”
