India can start PTA with Iran as Iran-Pak pact becomes shallow: Survey
Updated: Oct 05, 2015 01:40:28pm
New Delhi, Oct 5 (KNN) Unlike Pakistan which has a shallow Preferential Trade Agreement (PTA) with Iran, India can seize a new opportunity by easing of sanctions by the western nations and sign a trade opening pact with the key west Asian nation which can fill up the demand gap for Indian exporters in several other economies, according to a survey.
The analysis in the paper by ASSOCHAM revealed that the PTA with Pakistan is shallow and has not resulted in strengthening of trade relations between them and the total trade turnover between Iran and Pakistan has shrunk.
Besides the Iran-Pakistan PTA being shallow, the timing was also not right in the wake of full blown sanctions squeezing the best of the Iranian economy which was being punished for its controversial nuclear programme. Pakistan-Iran trade started declining gradually from the level of USD 1321.3 million in 2008-09 to a mere USD 218 million in 2013-14. Pakistan’s exports to Iran in 2013-14 declined to USD 53 million from USD 97.7 million in 2012-13, it said.
The paper also said that lifting of international sanctions on Iran provides an opportune time to start dialogue on India-Iran PTA.
This should encompass trade, investment and services. A PTA with Iran will help India expand the volume of exports to Iran, particularly of pharmaceuticals, iron and steel, auto components. Also Iran could serve as an outlet for Indian goods to countries in central Asia and Afghanistan, it said.
Iran’s trade with India in 2014-15 totalled around USD 13 billion. In 2011-12, before sanctions hit, it was more than USD 16 billion - a measure of the ground that may be recovered. With India’s trade deficit with Iran witnessing a rising trend in recent years, strategy to enhance trade relations with Iran, and thereby bridge the rising trade gap, would entail identification of potential items of India’s exports at a detailed level in line with Iran’s imports demand and India’s export capabilities.
There could be identification of potential exporters who could benefit from prevailing and future market opportunities in Iran, added the paper. (KNN Bureau)
The analysis in the paper by ASSOCHAM revealed that the PTA with Pakistan is shallow and has not resulted in strengthening of trade relations between them and the total trade turnover between Iran and Pakistan has shrunk.
Besides the Iran-Pakistan PTA being shallow, the timing was also not right in the wake of full blown sanctions squeezing the best of the Iranian economy which was being punished for its controversial nuclear programme. Pakistan-Iran trade started declining gradually from the level of USD 1321.3 million in 2008-09 to a mere USD 218 million in 2013-14. Pakistan’s exports to Iran in 2013-14 declined to USD 53 million from USD 97.7 million in 2012-13, it said.
The paper also said that lifting of international sanctions on Iran provides an opportune time to start dialogue on India-Iran PTA.
This should encompass trade, investment and services. A PTA with Iran will help India expand the volume of exports to Iran, particularly of pharmaceuticals, iron and steel, auto components. Also Iran could serve as an outlet for Indian goods to countries in central Asia and Afghanistan, it said.
Iran’s trade with India in 2014-15 totalled around USD 13 billion. In 2011-12, before sanctions hit, it was more than USD 16 billion - a measure of the ground that may be recovered. With India’s trade deficit with Iran witnessing a rising trend in recent years, strategy to enhance trade relations with Iran, and thereby bridge the rising trade gap, would entail identification of potential items of India’s exports at a detailed level in line with Iran’s imports demand and India’s export capabilities.
There could be identification of potential exporters who could benefit from prevailing and future market opportunities in Iran, added the paper. (KNN Bureau)
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