Iran can be most valuable source of energy for India: ICCIM

The energy sector is the most important factor underlining the desirability of closer Indo-Iranian relations, a senior Iranian industry official said.

"Given India's energy requirements during the first decade or two of this century, Iran can be the most valuable source of energy to India," Iran Chamber of Commerce, Industries & Mines (ICCIM) President, Mohammad Nahavandian, said, while addressing a seminar here.

The seminar was organised by the All India Association of Industries (AIAI) and the World Trade Centre (WTC).

India still imports about 65-70 per cent of its conventional energy requirements in terms of oil and petroleum products from abroad, he said.

"Iran can be one of the major exporters of natural gas to India. Imports of natural gas could be a major contributor to power generation in India in the coming decade," Nahavandian said.

The Iranian official emphasised the need to look to "East than to West" for business development in the prevailing changed global economy.

Three years ago, Iran amended its laws to lay emphasis on privatisation, decentralisation of the public sector and encourage private investment, he said.

Earlier, FDI was limited to 40 per cent but now it is 100 per cent, he said, adding that "oil, gas, power, dairy products, mining, ceramics and stones are some of the sectors where Iran is looking for investments."

Iran is also looking for joint ventures in tourism, which is an enabler industry, he said.

"Iran is looking for joint ventures in this sector, especially in health tourism. There is ample opportunity in the transportation industry," Nahavandian said.

AIAI President, Vijay Kalantri, said that India's total trade with Iran in the non-oil sector for 2007-08 was USD 12.87-billion, with India's exports being USD 1.95-billion.

India's imports excluding crude oil from Iran increased from USD 267-million in 2003-04 to USD 10.92-billion in 2007-08, he said.

India is one of the six largest non-oil export destinations of Iran, Kalantri said.

Iran's imports from India is much more as it is via other countries. "If this trade is transacted directly by the two countries, then the trade would triple benefiting both countries," he said.