India-Iran Call For Secure Payment Mechanism, Lowering Tariffs To Boost Trade

New Delhi, May 9, IRNA -- India and Iran Tuesday called for easing procedures to set up banks in each other’s country for evolving a secure payment mechanism besides lowering tariffs to increase bilateral trade and economic relations. Yahya Al-Eshagh, President of the Tehran Chamber of Commerce, Industry and Mines, said the two countries can significantly increase annual two-way trade totaling 14 billion dollars. The West Asian nation is a major source of energy and is keen to invite Indian investments in road construction and railway networks. “With a liberal business visa regime, more direct flights, trade fairs and exhibitions, the bilateral trade can be increased by at least 10 billion dollars in the near future,” he said while addressing a meeting hosted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Among the key sectors where Indian companies can focus in Iran are medical equipment, information technology, automobiles, textiles and ready made garments. Mr Al-Eshagh, leading a 56-member high-powered business delegation, said Iran is developing a North-South Corridor which can become a good ground for trade cooperation with Indian companies. Arvind Mehta, joint secretary at the ministry of commerce and industry, said nearly one-third of India’s exports are from special economic zones. Iranian companies can set up manufacturing bases here and export their products to various countries. India and Iran are identifying tariff lines under the preferential trading arrangement which need to be lowered. This will increase trade and investments in both countries, said Mr Mehta. Anil Agarwal, chairman of ASSOCHAM national council on international affairs, said the long-standing payment problem with Iran has been resolved and there is a need to focus on boosting exports – especially of agricultural commodities like wheat, rice and sugar. “India can also supply construction equipment, building material and hardware, pharmaceuticals, telecom products, textiles, automobiles and spare parts,” he said. “On the other hand, we can import crude oil, fertilizers, zinc, copper, iron, coal, uranium and manganese. India also requires natural gas which is in abundant supply in Iran.” Mohsin Pakparvar, deputy ambassador at the Iran embassy, said Iran is encouraging its private sector to play a greater role in the national economy. He said the west Asian country is interested in setting up a pipeline for supply of natural gas to India./end