Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

Foreign Trade

11,661.8575.5
Stock Analysis, IPO, Mutual Funds, Bonds & More

India, Iran may hold next round of negotiations for trade agreement in May

Till now, four rounds of negotiations have been completed and the last one was held in March in Tehran where both countries discussed draft text of the pact.

PTI|
May 01, 2019, 02.51 PM IST
0Comments
Agencies
Untitled-9
According to trade experts, the proposed agreement will give India a greater market access in the Persian Gulf nation.
Senior officials of India and Iran are likely to hold fifth round of negotiations for a bilateral preferential trade agreement (PTA) here this month, an official said.

Till now, four rounds of negotiations have been completed and the last one was held in March in Tehran where both countries discussed draft text of the pact.

"Both sides have tentatively agreed to hold the fifth round of talks here this month," the official added.

Unlike in a free trade pact, where two trading partners significantly reduce or eliminate duties on maximum number of goods traded between them, PTA involves removal of duties on certain identified products.

According to trade experts, the proposed agreement will give India a greater market access in the Persian Gulf nation.

"The PTA may not help India in bypassing trade sanctions being imposed by the US on Iran, but in the long run, Iran is an important market for Indian exporters," Biswajit Dhar, a professor of economics at Jawaharlal Nehru University, said.

Trade Promotion Council of India (TPCI) Chairman Mohit Singla said the PTA is important as India will be able to diversify its export basket which is now limited to agri products.

"With a carefully designed PTA, strategic products such as leather, textiles and ready made garments, which attract very high duties in Iran can become naturally competitive and India will be able to leverage its export strengths," he said.

Federation of Indian Export Organisations (FIEO) said Iran holds huge export opportunities in sectors such as agriculture, chemicals, machinery, pharmaceuticals, paper and paper products, man-made fibre and filament yarn and essential oils.

"The PTA will help India in its long run to increase exports," FIEO DG Jay Sahai said.

Iran's major exports to India are oil, fertilisers and chemicals while imports include cereals, tea, coffee, spices and organic chemicals.

India's exports to the Persian Gulf nation in 2017-18 were worth USD 2.65 billion, while imports were valued at USD 11.11 billion. The trade imbalance is mainly because of India's import of oil from Iran.

India, the world's third-biggest oil consumer, meets more than 80 per cent of its oil needs through imports. Iran in 2017-18 was its third-largest supplier after Iraq and Saudi Arabia and meets about 10 per cent of the total needs.

Also Read

Thailand, India sign trade agreements for Rs 2,400 crore

Finance ministry reviewing India’s free trade agreements

Initiate a bilateral trade agreement with Bangladesh in line with the Indo-Sri Lankan FTA: Assam Industry Minister

India proposes free trade agreement with Bangladesh

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service