Iran is ready to meet India’s energy security needs by launching rupee-rial trade for export of oil and gas said Dr. Ali Chegeni, Ambassador, Islamic Republic of Iran to India. Iran is also willing to work closely with India to revive and find alternative routes for the stalled IranPakistan-India pipeline project for transporting natural gas to India.
“Rupee-rial trade mechanism can help companies from both the countries to deal with each other directly and avoid third party intermediation costs,” the ambassador said on Thursday speaking at an interactive meeting organized by MVIRDC World Trade Center–a trade facilitating body and All India Association of Industries (AIAI).
India-Iran trade has declined sharply due to sanctions from $17 billion in 2018-19 (Apr-Mar) to less than #2 billion so far in the current financial year (April-January). However, the ambassador said that actual trade could be at least six times more than what is reflected in the official data, as several transactions went unreported.
“If both countries launch rupee-rial trade mechanisms, the bilateral trade could grow to $30 billion,” Dr. Chegeni said.
India is import dependent on several products like urea, petrochemicals, organic fruits, which are produced by Iran while India is a major producer of agro commodities, pharmaceuticals, iron & steel and automobiles, clinkers, cement etc. which are imported by Iran.
Iran has introduced a paper-less, electronic multiple visa issuance system for Indians to promote exchange of businessmen, tourists and students, the Ambassador pointed out.
“In this post COVID world when the global supply chain is reshaping, India should rework its traderelation with Iran for the benefit of business communities on both sides. The Chabahar port can be a golden gateway for Indian trade to Eurasian countries and Europe. Both the countries should facilitateseamless movement of cargoes through Chabahar port,” said Dr. Vijay Kalantri, Chairman, MVIRDC World Trade Center Mumbai.