Notwithstanding the threats by U.S. government to impose sanctions against India for its continued engagement with Iran, the high-level business delegation has returned after a week-long trip buoyant about the huge potential that it offers to Indian companies especially in the field of food grains, pharmaceuticals, power and food processing sectors.
The delegation led by Joint Secretary in the Ministry of Commerce, Arvind Mehta and comprising of various business organisations has termed their recent trip to Tehran as very good and fruitful. "We discussed tremendous opportunities in the fields of food grains, food processing, tea, pharmaceuticals, power sector and other areas of mutual trade. Iran provides India with a new and strong market and every effort should be made to top this potential," Federation of Indian Exporters Organisation (FIEO) president, Rafeeque Ahmed, who was leading the business delegation, told this correspondent.
Mr. Ahmed said that the rupee payment issue had been resolved and there had been a broad consensus that more banks should be added and margins of the banks in Iran be lowered to facilitate Indo-Iran trade. "Rupee mechanism issues have been sorted out with active involvement of FIEO, UCO and Persian Bank. Few more banks will be added to facilitate banking transactions after Navroz holidays in Iran," he added.
The Persian Bank has agreed to reduce Letter of Credit (LC) opening margins from 120 per cent to 10 per cent which will be a great move forward. "Dealing in Indian Rupee will provide comfort to exporter and will be a natural hedge when high volatility is being witnessed in currencies," he said.
FIEO had mounted a strong delegation of 80 businessmen to Iran for wide ranging discussion on increasing bilateral trade between India and Iran. He said the objective of the delegation is to look for long term business relationship and not to use the opportunity of sanctions against our age old friendly neighbours.
The delegation had meetings with Iran, Tehran and Tabriz Chambers of Commerce which resulted in encouraging business for Indian delegates in rice, soyabean, sugar, steel, auto components, pharmaceuticals, cosmetics, diagnostic and surgical equipment and textile machineries. Iran businessmen also showed keen interest in Indian IT and IT enabled services, tourism, health and medical tourism.
