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| India expected to increase exports to Iran to $6 billion |
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India plans to increase its exports to Iran to about USD six billion in the current fiscal year that began in April, Press TV reports.
Director General of the Federation of the Indian Exports Organizations Ajai Sahai made the remarks in an interview with Press TV, adding that New Delhi has taken many initiatives to expand its sales to the Islamic Republic.
India’s Trade Ministry also announced on Tuesday that the country has offered incentives to Indian traders for exports to Iran.
“Accordingly, exports of such goods to Iran which have been imported against payment in freely convertible currency would be permitted against payment in Indian rupees also, subject to at least 15-percent value addition,” the Directorate General of Foreign Trade, an arm of Indian Trade Ministry, said in a notification on its website.
New Delhi made the move a week after U.S. Secretary of State John Kerry announced a 180-day exemption from Washington's sanctions on Iran for nine economies, namely China, India, Malaysia, South Korea, Singapore, South Africa, Sri Lanka, Turkey, and Taiwan.
The West, led by the United States, has imposed a series of sanctions on the Islamic Republic on the pretext that Iran may be pursuing a military program under the cover of its nuclear energy activities.
Iran has vehemently rejected the allegations, saying that its nuclear activities are entirely peaceful and that it is entitled to such a program as a signatory to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT).
-India offers incentives for exports to Iran
India’s exports to Iran, which faced major disruption following U.S. and EU sanctions, are expected to double as Indian exporters have been offered new incentives. The move comes after the United States granted 180-day waivers on sanctions against Iran last week to India, China and a number of other countries in exchange for cutting purchases of oil from Iran.
India is expected to boost its exports to Iran as the country has come up with new incentives for its exporters. Indian traders can now re-export imported goods to Iran. They just need to add 15% value to such products. In an exclusive interview to PRESS TV, the Director General of the Federation of India Export Organizations has stated that India plans to increase its exports to Iran to 6 billion dollars a year.
New Delhi's trade with Tehran affected by the U.S. and EU sanctions on Iran. There is a restricted list of items that could be exported to. These include rice, cereals, pharmaceutical products, machine tools, automobile parts and steel.
However, the opening of the Letter of Credit from Iran under the Rupee Payment Mechanism has been impressive touching about USD 400 million on monthly basis. The new measures now widen the scope of their exports.
There is another important aspect of these sops. These exports could be paid back in Indian currency. Iran is already accumulating Indian Rupee. These are for payment for the crude oil imported by India. The money is paid for in rupee account at Indian UCO bank. India imports about 266,000 barrels per day of crude from Iran though in the past one year this volume has come down by 26%.
The new move is expected to further help Indian exporters who are eagerly looking to diversify their markets in the wake of a slowdown in the U.S. and Europe. India had clearly stated that it is not willing to stop trade relations altogether, to the contrary, aims at expanding the commodity trade with the Islamic republic.
While it will be left for individuals and companies to strike business deals with each other, analysts hope that the new mechanism by the Indian government will give the much needed boost to trade ties that will be mutually beneficial.
(Source: Press TV)
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