TEHRAN -- Q: What role would the North-South trade corridor play in opening new avenues of trade between India and Iran in the region? A: Indian industries realize the importance of the North-South corridor, which will serve not only to increase business between the two countries but also provide India with easy access to markets in Central Asian Republics, Russia, and even Europe.

The benefits that can be expected would be multilateral. All the countries will benefit as the corridor would provide easy access to business opportunities not available in the past which can be a big boost to trade in view of the intense competitiveness in the international environment.

A facility like the corridor would be a great boon to all countries benefited. The CII is looking forward to the corridor becoming a reality as early as possible. It would strengthen further the economic and industrial cooperation now existing between India and Iran, and the region as a whole will see increased business activity which will not only spurt industrial production but would also activate industrialization in the entire region.

I feel the opening of the corridor would be a great event, as it would contribute to the economic prosperity of countries in the region.

Q: What are the specific trade prospects India is eyeing in the Iranian market in the age of the new economy? A: India realizes that Iran has achieved a reasonably high level of industrial development and has a sophisticated market. The present need is to develop collaborative competition which would enable the industries in both countries to contribute what they can on the basis of their strengths and bridge existing gaps.

Both India and Iran are strong in the automobile and automobile components industry and have achieved a certain degree of sophistication.

However, cooperation would be desirable as there are certain products which Iran does not manufacture and which India has the capability.

Appropriate collaborative arrangements can be developed in these areas. This would lead to a two-way traffic.

Petrochemicals and engineering services are two other sectors with rich potentials for joint cooperation. The construction sector can also provide opportunities for collaboration in reconstruction work in Afghanistan to which Iran has direct access. Representatives of Iranian construction companies, with whom I had the opportunity to exchange views, have confirmed that joint efforts would in fact be possible.

Iranian construction companies have indicated their desire to undertake construction projects in India. These possibilities need to be pursued.

Dr. S.M. Adeli, the deputy foreign minister for economic affairs in the Iranian Ministry of Foreign Affairs whom I had the privilege of meeting, made specific reference to the need to strengthen cooperation in the manufacturing and service sectors and to tap the potential which exists in third world markets.

R. Veyseh, the deputy minister and chairman of the board of Industrial Development and Renovation Organization of Iran (IDRO) in Iranian Ministry of Industry and Mines, stressed the need to forge a fresh agenda for cooperation between the CII and IDRO, which desires Indian companies to invest in Iran and participate in joint ventures and production units in areas to be identified.

IDRO also sees possibilities of cooperation in regional markets, including Afghanistan and Iraq.

Designing and planning of IT systems is a possible area where Indian cooperation would be welcomed by Iran.

Veyseh mentioned cooperation in the area of professional and technical training. The CII will pursue possibilities for joint endeavors with IDRO. I had a fruitful exchange of views with A.N.

Khamoushi, president, and Dr. F. Entezari, deputy president for foreign affairs of the Iran Chamber of Commerce, Industries and Mines, among others, on institutional cooperation with a view to bring together businessmen from the two countries and providing them with opportunities to do business.

CII values the advice and guidance of the above-mentioned stalwarts of Iranian industries and would respond positively with specific measures toward cooperation. Close cooperation between CII and Iranian business organizations will be mutually beneficial and it will be a CII responsibility to strengthen business relations further.

Q: Seminars and gatherings are some of the means of exchanging experience, knowing each other and strengthening relations. What are the measures that have been initiated to bring the Iranian delegation to join conferences and conclaves to further cement relations between the two countries? A: The CII is organizing two major international events in the first quarter of 2003--a partnership summit at Hyderabad scheduled for the 5th to the 8th of January 2003 and the Indian Engineering Trade Fair scheduled to be held from February 5-8 in New Delhi. The CII desires to have a strong Iranian participation in these events which are expected to provide opportunities for networking of senior business leaders from all over the world, including Indian business leaders and policymakers.

A strong presence of Iranian business leaders in the summits would immensely help Iran project its capabilities and opportunities. The presence and participation of Iranian business leaders in the summits would help project Iranian capabilities as well as strengthen Iran-India relationship.

The possibility of organizing a specific event on Iran at the summit would be considered by CII, IRNA reported.