Business Between India And Iran Expected To See A Rise

India has lifted the ban imposed on Iran for importing and exporting of certain items. Iran, a country with the world’s largest combined oil and gas reserves, holds 9.3% of global oil reserves and 18.2% global gas reserves.

Bilateral trade between India and Iran stands at $9 billion as of 2015-16. Indian exports to Iran stood at $4.2 billion in 2014. India depends heavily on Iran for oil imports. India imported 48.8% more oil from Iran in April 2016 than it did in April 2015. In the first 4 months of 2016, Iran’s oil exports to India increased over 200% to 322,500 BHD from the same period last year. Essar Oil, India’s largest buyer of crude oil from Iran, imported 49.7% more oil from Iran in May 2016 than it did in May 2015, shipping 187,300 barrels per day, a 4.6% increase from April 2016. In the first 4 months of 2016, on average, Essar imported 149,500 bpd from Iran compared to 76,000 bpd in the first 4 months of 2015. Iran’s share of overall imports by Essar increased to 41% in the first 5 months of 2016 from 23% in the same period a year ago.

Other Indian refineries, like Reliance Energy, Hindustan Petroleum Corporation and Bharat Petroleum Corporation too have had good ties with Iran.

Moreover, India has agreed to build and operate the Chabahar port of Iran, showing signs of deepening economic ties between the two nations. Iran is an extremely resourceful country with great political stability, making it a great business environment.

Source: News