SME Times News Bureau | 08 Jan, 2020
Escalation
of tension between the US and Iran will have implications on India’s exports to
the Persian Gulf nation, said industry body FIEO.
Speaking on
the ongoing tensions between Iran and the US increased after an American drone
strike that killed top Iranian General last week, Saraf said that so far
exporters have not flagged any concerns related with exports to Iran.
"However,
if the tensions esclates, it may have an effect on India's exports to
Iran," added Saraf.
Iran is a
key trading partner of India.
The FIEO
Chief also said that due to existing trade sanctions on Iran, Iranian shipping
lines are only taking Indian consignments to that country.
Iran’s major
exports to India are oil, fertilisers and chemicals, while it imports cereals,
tea, coffee, basmati rice, spices and organic chemicals, among others said Mr
Saraf.
The FIEO President
also added that India's exports to Iran during 2018-19 were USD 3.51 billion,
while imports were USD 13.52 billion.
The trade imbalance is mainly
because of India's import of oil from Iran.
Sharad is also of the view that 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.