Trade with India to touch $24 bn in medium-term:Tehran Chamber

"India and Iran are looking to step up annual trade to USD 24 billion in the medium-term from USD 14 billion now that is driven by oil imports by India," said Tehran Chamber of Commerce, Industry and Mines President Yahya al Eshagh here.

Eshagh, a former Commerce Minister who is visiting India as part of a business delegation, however, didn't set a time-frame for this growth.

His remarks come amidst US pressure on India to scale down trade oil imports from sanction-hit Iran. Resisting the US pressure, India had made it clear yesterday that it has to look at the issue involved beyond the energy trade as it has "vital" security stakes in the Gulf region.

In the wake of sanctions from the US and EU, Iran is looking for increased imports from India. The two countries. however, face problems with regard to banking transactions for which Iran has sought permission to open a branch of Parsian Bank in Mumbai.

Commerce Secretary Rahul Khullar had assured the visiting Iran businessmen in New Delhi to resolve their problems, including setting up of the Parsian Bank. India had also commissioned a study for a preferential trading arrangement with Iran.

Reacting to US Secretary of State Hillary Clinton's call to India to cut back on Iranian oil purchases, Eshagh said, "We don't have anything to do with the visit of Clinton. We are very happy that we are doing our own business."

The visit by the Iranian delegation to New Delhi coincided with that of US Secretary of State Hillary Clinton, who was in India on her last leg of three-nation Asia tour.

India's exports to the Gulf region stood at about USD 100 billion last fiscal.

Top oil importers have reduced Iranian oil imports by 15-20 per cent. Crude imports from Iran fell to 18.5 million tonne in 2010-11 from 21.2 million tonne in 2009-10. Last fiscal, Iranian oil imports dropped to under 16 million tonne and may further slide to 14 million tonne.

MRPL and Essar Oil, largest importers of Iranian oil, are planning to cut their shipments this fiscal.