The US-Iran ongoing tension may adversely affect India's trade
Monday - January 6, 2020 11:58 am ,
Category : WTN SPECIAL
Question mark on the trade relations with Iran
Crisis clouds on the trade from Persian Gulf countries due to the Iran crisis
JAN 06 (WTN) - As you know, the tension between the US and Iran has increased once again. The apprehension of war between the two countries has deepened following the assassination of Iran's top general Qasem Soleimani in the US drone strike. America argues behind the assassination of Qasem Soleimani that Soleimani was killed because Soleimani was involved in the plot to assassinate American citizens. At the same time, after the assassination of Soleimani, Iran says that it will definitely take revenge on Soleimani’s assassination from America.
According to experts, Iran has many options with the help of which it can harm American interests. At the same time, Iran may open war against America. But according to the experts of international relations, if Iran waged war against America, then America would end this war. It is being said that Iran can avenge the assassination of Soleimani from America through other options instead of war.
Whether it is war or not, or Iran may take revenge on the US in some other way, but trade between the Persian Gulf can have a very negative effect amid all. If tensions between the US and Iran continue in a similar manner, exports from India to the Persian Gulf countries may be affected. The Federation of Indian Export Organizations (FIEO), a major exporters' organization, expressed the possibility of Indian exports being affected due to US-Iran tension.
According to the FIEO, exporters have not yet expressed any concern about exports to Iran, but if tensions between the US and Iran continue, it may affect exports to India from Iran. Not only this, but the goods exported from Iran to India can also have a stress effect. According to FIEO, not only Iran but due to increasing tension or war, trade with countries located in the Persian Gulf may be stalled.
For your information, let us know that India and Iran have had trade relations for centuries. Explain that Iran exports crude oil, fertilizer, and chemicals to India. On the other hand, India exports coarse grains, tea, coffee, basmati rice, spices and organic chemicals to Iran. Let you know that India's exports to Iran were $ 3.51 billion in the FY 2018-19. At the same time, India's imports from Iran were $ 13.52 billion. Indeed, the major reason for this trade imbalance is India's large import of crude oil from Iran.
Mutual trade between the two countries should be increased, so both countries are negotiating a bilateral preferential trade agreement (PTA). However, Iran has been demanding from India for a long time that India should start importing oil from Iran again because Iran has increased the import of some goods from India. Iran says that India and Iran have had trade relations for centuries, so India should not worry about the restrictions imposed by the US, because the restrictions imposed by the US are one-sided, and these restrictions were not imposed by the United Nations.
Iran is constantly requesting India to keep the trade going despite US restrictions. Iran is also ready to take Indian currency rupee instead of the US dollar in trade. Iran says that India and Iran can trade through select banks. As you know, India stopped importing oil from Iran due to the US restrictions. In such a situation, Iran warned India that if India does not resume trade relations, it can reduce the exports from India, and it can export the goods from another country.
It remains to be seen how Iran takes revenge on the US after Soleimani’s assassination, and if this leads to increased tensions between the US and Iran, it will also adversely affect India's trade relations with Iran, including those countries situated in the Persian Gulf. For your information, let us know that India has good trade relations with the Persian Gulf countries. In such a situation, if the tension between the US and Iran increases, and India's trade with the Persian Gulf countries are affected, it could cause India to suffer financially.
JAN 06 (WTN) - As you know, the tension between the US and Iran has increased once again. The apprehension of war between the two countries has deepened following the assassination of Iran's top general Qasem Soleimani in the US drone strike. America argues behind the assassination of Qasem Soleimani that Soleimani was killed because Soleimani was involved in the plot to assassinate American citizens. At the same time, after the assassination of Soleimani, Iran says that it will definitely take revenge on Soleimani’s assassination from America.
According to experts, Iran has many options with the help of which it can harm American interests. At the same time, Iran may open war against America. But according to the experts of international relations, if Iran waged war against America, then America would end this war. It is being said that Iran can avenge the assassination of Soleimani from America through other options instead of war.
Whether it is war or not, or Iran may take revenge on the US in some other way, but trade between the Persian Gulf can have a very negative effect amid all. If tensions between the US and Iran continue in a similar manner, exports from India to the Persian Gulf countries may be affected. The Federation of Indian Export Organizations (FIEO), a major exporters' organization, expressed the possibility of Indian exports being affected due to US-Iran tension.
According to the FIEO, exporters have not yet expressed any concern about exports to Iran, but if tensions between the US and Iran continue, it may affect exports to India from Iran. Not only this, but the goods exported from Iran to India can also have a stress effect. According to FIEO, not only Iran but due to increasing tension or war, trade with countries located in the Persian Gulf may be stalled.
For your information, let us know that India and Iran have had trade relations for centuries. Explain that Iran exports crude oil, fertilizer, and chemicals to India. On the other hand, India exports coarse grains, tea, coffee, basmati rice, spices and organic chemicals to Iran. Let you know that India's exports to Iran were $ 3.51 billion in the FY 2018-19. At the same time, India's imports from Iran were $ 13.52 billion. Indeed, the major reason for this trade imbalance is India's large import of crude oil from Iran.
Mutual trade between the two countries should be increased, so both countries are negotiating a bilateral preferential trade agreement (PTA). However, Iran has been demanding from India for a long time that India should start importing oil from Iran again because Iran has increased the import of some goods from India. Iran says that India and Iran have had trade relations for centuries, so India should not worry about the restrictions imposed by the US, because the restrictions imposed by the US are one-sided, and these restrictions were not imposed by the United Nations.
Iran is constantly requesting India to keep the trade going despite US restrictions. Iran is also ready to take Indian currency rupee instead of the US dollar in trade. Iran says that India and Iran can trade through select banks. As you know, India stopped importing oil from Iran due to the US restrictions. In such a situation, Iran warned India that if India does not resume trade relations, it can reduce the exports from India, and it can export the goods from another country.
It remains to be seen how Iran takes revenge on the US after Soleimani’s assassination, and if this leads to increased tensions between the US and Iran, it will also adversely affect India's trade relations with Iran, including those countries situated in the Persian Gulf. For your information, let us know that India has good trade relations with the Persian Gulf countries. In such a situation, if the tension between the US and Iran increases, and India's trade with the Persian Gulf countries are affected, it could cause India to suffer financially.
