TEHRAN (Iran News) –Caretaker of Iran Trade Promotion Organization (TPO) Mehdi Zeyghami says the total trade between Iran and India was $510m in the first quarter of 2023 and reiterated India is one of the main priorities of Iran for broadening its trade.
Speaking in the conference on introducing opportunities and capacities of presence in the Indian market, Zeyghami said that India is one of the main priorities of Iran for broadening trade, adding that the approach of TPO has been the increase of exporting goods and technical and engineering services so that India has an important stand for Iran.
He first pointed to the cultural and historical commonalities and trade between the two countries, adding that the current government in Iran has positive approach for boosting relations with India and for this reason India is one of the priorities of the current government.
He went on to say that Iran’s trade with India has been favorable but sanctions have decreased this trade but last year bilateral trade was $5b. He noted that the total trade exchange of India with Iran in the first quarter of 2023 has been $510m, and the oil products, fruits and raw material for paint production have been the three major exporting of Iran to India. He added that rice, fruit and tea have been the major imports of Iran from India.
Zeyghami then stated that despite high potentials of both countries for broadening economic and trade relations, it is required Iranian traders to get acquainted with opportunities and capacities of this market and holding conferences can help a great deal for introducing this market.
He added that the trade balance in this period has been $188m in favor of India, noting that Iran in recent months has been complaining about the high negative trade balance with India and has called for making the bilateral trade balanced and 29% decrease in India’s exports to Iran in the first four months of 2023 has been because of this.
Zeyghami also urged Iranian traders to facilitate exports of dried fruits from Iran to India.
He reiterated that India has zero custom tariffs for come countries and it has led to the rise in smuggling of Iranian goods to India from other neighboring countries and expressed hope both sides can boost direct trade.
He said that Iran is determined to finalize preferential trade agreement with India and expressed hope it would be signed very soon.
Zeyghami then pointed to the banking and financial hurdles between the two countries, stating that some ways have been planned to broaden trade ties and PTO has on its agenda increasing the presence in the exhibitions in its target countries and it supports dispatch of trade delegation. He reiterated that without active presence of Iranian and Indian businessmen, broadening of ties is unimaginable.
Then Ambassador of India to Tehran Rudra Gaurav Shresth, for his part, said that India is working hard to reduce the banking problems despite sanctions, adding that by the way India is keen to increase its trade level with Iran in the non-sanctioned areas.
He then pointed to the importance of interactions between the private sectors of both countries, adding that accordingly economic activists of both countries are exchanged in the form of trade delegations to see broadening of ties.
He added that political problems of Afghanistan and India created challenges for export of dried fruits to India and it seems Iran can enter and have some share of dried fruits in India.
Shresth added that custom tariff of India for some countries is low, adding that this will be also solved for Iran and in terms of logistics, there are good capacity in Chabahar Port in different fields that it can restore trade ties with Indian ports.
Then Hadi Talebian Moghaddam, Head of TPO Indian Subcontinent Office, for his part, last year Iran’s exports to India was some $2.146b which showed 18% growth comparing to the preceding year.
He added that last year bilateral trade of Iran and India was $5b and because of high potentials it is necessary potentials of Indian market to be introduced to Iranians and holding such a conference will help it.
He said that India’s imports from Iran in the first quarter of 2023 grew 6% comparing to the same period in the preceding year which was $257 while India had imported $242b of goods in the first quarter of in the same period in the preceding year.
Talebian Moghaddam stated that despite exporting grounds for agro products some important and infrastructural trade issues can be in the trade between the two countries like preferential trade agreement, joint investment and developing infrastructures and Chabahar Port facilities for developing regional and international transit and transport.
Meanwhile Iran’s Ambassador to India Iraj Elahi, for his part, said that once the trade volume between the two countries was $18b which declined because of sanctions but fortunately it is bouncing back through some actions taken by both sides.
He said India is one of the top five trade partners of Iran and reiterated that Indian market is good for exporting Iranian goods in Asia and the world and close distance between the two countries has caused both sides to have more cooperation.
He reiterated Iran is in talks with India for issuing e-visa for Iranians and both sides are talking for holding their joint economic commission.
