US sanctions on Iran unfavourable for India, says Srinivasan

Eminent US-based economist T N Srinivasan said the decision of Trump administration to impose sanctions on Iran will have unfavourable impact on India as well as global environment.

US President Donald Trump has recently announced that America will withdraw from the landmark 2015 accord to curb Iran's nuclear programme and reinstate financial sanctions on the Persian Gulf nation.

"Current economic situation, although favourable, is dependent on external economic climate.

"The US decision to pullout the agreement with Iran and threat to reimpose earlier sanctions on Iran in a more stringent (manner), even if European Union and other powers do not follow the US, is unfavourable (for) global and Indian economic prospects," Srinivasan, the Samuel C Park Jr Professor Emeritus of Economics at Yale University, told PTI in an interview.

He further said that Prime Minister Narendra Modi should concentrate on completing its reform agenda, including importantly making India a federation.

Replying to a query related to the recent banking frauds, including the Rs 13,000 crore one at Punjab National Bank (PNB), the eminent economist said there is no doubt selling a significant part of the public sector bank's assets is an urgent task.

Referring to crisis in farm sector, Srinivasan said debt-melas and debt-mafis are no solutions to the farm sector problem.

"Attending to the problems of irrigation, fertiliser and markets and prices in a comprehensive and interrelated way is neeeded," he stressed.