New Delhi, Aug 24 (KNN) India and Iraq are looking at the possibility of an understanding between the central banks of the two countries to resolve the problem of payments through the use of local currencies.

India and Iraq will look at the possibility of trading in their local currencies. The move will help in India sourcing oil from Iraq and the latter importing essential food and agricultural commodities from India.

"We are exploring the possibility of trading in our local currencies- dinar and rupeee. Our officials will discuss this," Commerce and Industry Minister Anand Sharma said.

Iraq, on its part, is also working on making the tendering process for sourcing equipment amenable for Indian companies, which are today left out because goods of Indian origin are not allowed to participate in tenders floated by Iraqi companies.

Visiting Iraqi Prime Minister Nouri Kamil Al-Maliki addressed Indian business men here yesterday at a joint chambers meeting.

The Iraqi Prime Minister sought Indian investment in rebuilding of his country.

“We rely heavily on India for the reconstruction and development of Iraq which has been devastated by war and adventure”, he said and added that his country had passed many legislations on investment promotion and management of the business sector.
 
Sharma, expressed the hope that the visit of the Iraqi Prime Minister will open pathways for greater cooperation to the mutual benefit of the two countries.

Sharma also offered India’s strength and technological capabilities to build Infrastructure projects in Iraq.

“India is looking at Iraq as a long term partner in trade and investment cooperation.  Such cooperation would not be limited to the oil sector but embrace a gamut of sectors including infrastructure, pharmaceuticals, health and education,” said FICCI President Naina Lal Kidwai. (KNN/SD)