The Governments of India and Iran have reached a basic barter deal, wherein India will be able to buy Iranian oil in exchange for its textiles.
Initially, a preliminary agreement would be signed between the private sectors of the two countries for Iranian imports of textile machinery and raw materials from India, which would be followed by general agreements between the two Governments on exchange of oil for goods, Iranian Labour News Agency said quoting Reza Tofiqi, vice president for marketing and relations adjustment at Iran’s Trade Promotion Organization.
Mr. Tofiqi said Iran is already a major oil supplier to India, while the South Asian country has enough experience in the textile industry, and if a final agreement is reached, Iranian textile imports from India might go up to US$ 400 million.
Last week, a high-level Indian delegation led by Textiles Secretary Mrs. Zohra Chatterji visited Iran with an aim to increase Indian textile exports to the Islamic Republic.
Coinciding with her visit, Combined Indian Textile Exhibition (INTEXPO), an exclusive three-day exhibition of Indian textiles, was organized in Tehran, where over 60 Indian firms showcased the entire range of Indian textile products, including different kinds of fibres, yarn, fabric, apparel and accessories.
Last year, India imported US$ 11 billion worth of goods, mainly oil, from Iran, while its exports to Iran totaled only US$ 2.95 billion. Hence, the textiles-for-oil deal would also help India reduce its trade deficit with Iran.
Fibre2fashion News Desk - India