Tensions between Iran and the US increased after an American drone strike that killed top Iranian General last week. Iran is a key trading partner of India. “Escalation of tension between the US and Iran will have implications on India’s exports to the Persian Gulf nation, said, Sharad Kumar Saraf, President, FIEO. He said that due to existing trade sanctions on Iran, Iranian shipping lines are only taking Indian consignments to that country. Iran’s major exports to India are oil, fertilisers and chemicals, while it imports cereals, tea, coffee, basmati rice, spices and organic chemicals, among others.
FIEO Chief is also of the view that Iran holds huge export opportunities in sectors such as agriculture, chemicals, machinery, pharmaceuticals, paper and paper products, man-made fibre and filament yarn and essential oils.