Indian industry welcomes lifting of sanctions against Iran

India Inc. Monday hoped that exports to Iran would rise following the interim agreement between the oil-rich nation and major world powers.

Welcoming the agreement that will lift trade sactions against Iran, FICCI President Naina Lal Kidwai said: "This is a historic decision and hopefully a first step towards engaging Iran in a deeper and more meaningful manner."

"We will also see possibilities for exporting our manufactured and other goods to that market including pharma, IT, electronics, automobile spare parts and food processing."

The domestic industry is hoping that the sanction relief will benefit Indian companies in promoting trade between the two countries which stood at $15 billion.

The development also coincided with the visit of Iran's Deputy Foreign Minister Ebrahim Rahimpour to New Delhi.

Rahimpour Monday met with Indian Foreign Secretary Sujatha Singh and briefed her about the interim agreement and outlined prospects of moving forward in the evolving situation.

According to the Ministry of External Affairs (MEA), Rahimpour and Singh discussed various possibilities of furthering bilateral economic cooperation, particularly the Chabahar port project in which India has evinced a keen interest.

India recently decided to invest $100 million in the free trade zone in Chabahar port, located at the confluence of the Indian Ocean and the Oman Sea.

"Indian companies will get access to the markets in Afghanistan and Central Asia. This port would also have greater strategic importance for India after foreign forces leave Afghanistan in 2014," added Kidwai.

Apart from oil, Indian industry is hopeful of exporting more of manufactured goods to Iran to balance trade.