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Indian exporters have written to the RBI asking for speedy clearances for Iranian banks that have applied to open their branches in India. This will help in increasing exports to the country after it dipped in the last fiscal due to falling oil and commodity prices.
“We have asked the RBI to expedite clearance of the applications given by the Iranian banks to open up branches. The Commerce Ministry is also supporting us. Once banks from both countries open their branches in the other country, bilateral trade will shoot up,” said Ajay Sahai, Director-General, FIEO.
A delegation of business persons from Iran representing a number of sectors such as textiles, clothing, fruits and vegetables, dates, live animals and bitumen are in India to hold meetings with Indian businesses.
Biz-to-biz meetings“We believe that such business-to-business meetings will help to increase business between the two countries. We also hope that banks will get the relevant permissions soon to open branches,” said Ali Raoffi, Deputy Governor of Hormozgan Provice and leader of the Iranian delegation.
The Iranian banks that have applied for setting up branches in India include the Bank of Pasrgad, Saman Bank, Parsian Bank, Bank Mellat and the Persian International Bank. Some of the banks applied almost five years ago.
The Commerce Ministry is also in talks with the Iranian government for allowing at least two Indian banks — SBI and UCO — to set up branches in Iran. IDBI could also apply for opening a branch in the country, Sahai added.
Following the lifting of economic sanctions against Iran by the UN and several Western countries and blocs including the EU, the two countries are hoping that normalised relations would lead to increased business.
India’s exports that increased to $5 billion in 2014-15 fell to $2.8 billion the following year. Both sides are hopeful that bilateral trade will increase from the present $9 billion to $12 billion over the next two years.
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