Economy, Domestic Economy

India-Iran PTA Within One Year

India-Iran PTA Within One YearIndia-Iran PTA Within One Year

India and Iran have agreed to conclude within a year a preferential trade agreement, which is expected to boost bilateral trade. “A preferential trade agreement with Iran will benefit Indian exports as tariffs in general are higher in Iran,” says Ajay Sahai, director general of the Federation of Indian Export Organizations, the Indian daily Telegraph (Calcutta) reported.  “We can expect a 25-50% cut on MFN (most favored nation) duty, but it will be a reciprocal gesture though our offer list will have products of our export interest and vice-versa.” The joint statement issued after the conclusion of Prime Minister Narendra Modi’s visit to the Persian Gulf state said, “Iranian President Hassan Rouhani and Modi agreed to strengthen the longstanding trade ties between the two countries by, inter alia, stepping up the momentum of economic engagement through the early conclusion of a PTA, preferably within a year.” The two trading partners plan to reduce or eliminate duties on select products to boost trade and investments. “The new sectors such as auto components, various types of steel, pharmaceuticals, gems and jewelry that have made inroads into Iran during the sanction period can leverage further on tariff advantage gained through the PTA with Iran,” Sahai said.