Hailing the Notification permitting export of imported goods to Iran with 15 percent value addition, the apex exporters body, FIEO, said that the relaxation in export of imported goods to boost exports.

The move will benefit Indian exports and we can look forward for sizable growth in India's exports to Iran in the current fiscal," M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) said in a press statement on Tuesday.

However, President, FIEO suggested that Government should put a cap on such exports so that the basic idea of promoting manufactured exports from the country remain in focus and the new provision is tested on a limited scale.

To encourage exports, the government has recently allowed export of imported goods with 15 percent value addition to countries from where the proceeds are realised in Indian rupee.

The Directorate General of Foreign Trade (DGFT) will notify the names of those countries as to which exports under the new dispensation could be made.

"The opening of Letter of Credit from Iran under the Rupee Payment Mechanism has been impressive touching about USD 400 million on monthly basis. With the new provision being put into place, we can look for exports close to USD 6 billion in 2013-14," added Ahmed.