India has given a strong signal that it will continue to trade with Iran despite pressure from the US. Iran too has stated that both the countries should continue to work together irrespective of what others like or do not like. India is in fact considering increasing trade with Iran through a bilateral preferential trade pact as per Joint Secretary in the Commerce Ministry, Arvind Mehta.
Trade between India and Iran amounted to $14 billion in 2010-11, of which a major part was the Indian import of crude oil. In the wake of sanctions from US and EU, Iran is looking at expanding this bilateral trade further. India too is keen on expanding trade as it believes that Iranian oil is critical for its development and that Iran can also be a good export destination for its food products. However, the two countries still face problems with regard to banking transactions for which Iran has sought permission to open a branch of Parsian Bank in Mumbai.
These comments are coinciding with the visit of US Secretary of State Hillary Clinton who is keen that India keeps its trade with Iran at a bare minimum level. At a joint press conference with Clinton, External Affairs Minister S M Krishna has said, Iran is 'one of the critical destinations for our external trade'.
Commerce Secretary Rahul Khullar has also assured the Iranian business persons of resolving their problems, including setting up of Parsian Bank in India.
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