Economy

Iran suggests barter trade with India for sectors like agri, drugs

Amiti Sen New Delhi | Updated on August 28, 2019 Published on August 28, 2019

Iran has suggested putting in place a barter trade system with India beyond the existing rupee payment mechanism in which items could be traded sectorally.

"We could do barter trade with India agriculture against agriculture, pharmaceutical against pharmaceutical and so on," Iran's Ambassador to India Ali Chegeni said at an interactive session with Indian business organised by PHDCCI on Wednesday.

Chegeni pointed out that despite US economic sanctions against Iran, the bilateral trade between India and Iran had increased to $ 17.50 billion in 2018 from $ 13.5 billion the previous year. There is scope for bilateral trade to rise to $ 30 billion soon and then to $ 50 billion, he added.

"The relationship between Iran and India is complimentary. We don't compete with each. We need the items that the other country produces," Chegeni said. India and Iran re-activated the Rupee payment mechanism in October 2018 when the US sanctions against oil imports from Iran were implemented. India, however, has put a stop on oil imports from Iran after the US withdrew its exemption earlier this year.

The Iranian Ambassador said that a barter trade mechanism for broad categories of goods can easily be implemented such as agriculture, fertilisers, drugs and vehicle parts. Chegeni also said that Iran will give multiple entry visas for a year to Indian businesses to facilitate travel and trade.

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Published on August 28, 2019
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