Economy, Business And Markets

MEB Weighing India Business

MEB Weighing  India Business MEB Weighing  India Business

As Iran and the six world powers known as the P5+1 are expected to gather this week in Vienna to push for a deal over Tehran’s nuclear energy program, the Middle East Bank (MEB) of Tehran has started negotiations with Indian officials to get prepared for post-sanctions era.

Iran has, since 2010 come under US, EU and UN sanctions over a nuclear dispute. The ongoing talks seek to settle the 12-year standoff paving the way for the economic sanctions to be eased or lifted.

Ali Hasanpour, the bank’s CEO traveled to Mumbai to explore opportunities to increase the current $15-billion trade between Iran and India, The Asian Age reported on Friday.

The Middle East Bank and IndAsia Fund Advisors Pvt. Ltd headed by Pradip Shah, have set up a joint venture called IndAsia Corporate Advisors Private Limited.

Speaking about India’s enormous opportunities to increase its engagement with Iran particularly in the manufacturing sector at a meeting organized by the World Trade Center and AIAI, Hasanpour said, “Iran consumes $4 billion worth of pharmaceutical products [every year] and half of this is imported and India’s share is less than $60 million or a mere two percent,” the report said.

In the auto sector, Iran’s cheapest car sells for $6,500 whereas the Indian-made Nano sells for half that price.

Hasanpour said China exports about 40,000 cars annually to Iran. He invited Indian companies to set up manufacturing units in Iran.

In the energy sector, the Iranian government gives a subsidy of $300 for every electric bike produced as it plans to replace traditional bikes with new electric ones.

Indian manufacturers, the MEB CEO said, can also supply industrial, agricultural to petrochemicals products through the Iran Mercantile Exchange (IME).

The joint venture headed by Firoze Andhyarujina would act as a facilitator to establish the best possible channels for Indian traders to enter Iran’s large market.