With payment mechanism issues being resolved, sanction hit Iran is keen to enhance trade with India especially with import of agricultural commodities like wheat, rice, tea and sugar, as per the Federation of Indian Export Organisations (FIEO). Pharmaceutical is the other area which is under consideration. India and Iran are looking at increasing the bilateral trade to $25 billion in the next four years from the current level of $15 billion.
A 56-member Iranian trade delegation is currently in India to discuss ways and means to increase trade with the country. It is also expected that exports to Iran will help reduce the trade deficit of the country which currently stands at an all time high of $185 billion.
The exporters body is also keen that the government helps it to increase trade with countries like China and Africa which it believes are still untapped markets. It is of the opinion that prices of manufacturing as well as wages are increasing in China which is making their commodities expensive. Indian commodities are now in a position to effectively compete with them in the global market.
FIEO is also of the view that the Reserve Bank should also be asked to intervene to provide more affordable credit to exporters. It has further observed that efforts to diversify markets and reduce dependence on US and Europe are yielding results. Asia and ASEAN region which accounted for about 35% of India's exports are now accounting for about 50% of the share.
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