M Rafeeque Ahmed, President of The Federation of Indian Export Organizations (FIEO), stated that exporters would benefit with the improvement in trade ties between India and Iran, which has now been made possible with the resolution of the long-standing payment issues with Iran. This has been made possible with the active involvement of FIEO, as well as UCO and Persian Bank.
The Persian Bank has lowered the opening margins for Letters of Credit (LC) from 120 percent to 10 percent, which would go a long way towards helping Indian exporters. Moreover, Iran’s agreement to receive payment in Indian rupees for shipments to India will greatly help in improving the trade balance between the two countries. Rafeeque said that dealing in rupees will prove to be a source of comfort to Indian exporters, considering the increasing volatility in international currencies.
Rafeeque also went on to state that Iran is seeking joint ventures in India in fields like mining, hydro power and railways, which would help clear up India’s oil dues. Iran has also expressed interest in India’s IT and IT-enabled services, tourism, health and medical tourism sectors.
FIEO sent an 80-member delegation to Iran to study business opportunities between the two countries. The delegates met with officials from the Iran, Tehran and Tabriz Chambers of Commerce. Opportunities were discussed for business in rice, soya beans, sugar, steel, auto components, pharmaceuticals, cosmetics, diagnostic and surgical equipment as well as textile machinery.
Source: FIEO press release