"India will not violate any international law and within the framework of international law, we would like to work with Iran in a manner that we can deal with Rupee trade wherein both countries can trade the items of mutual interest.
In May last year, US President Donald Trump withdrew from the 2015 nuclear accord with Iran, reimposing economic sanctions against the Persian Gulf nation. Some sanctions took effect from August 6, 2018 while those affecting oil and banking sectors kicked in from November 4.
Iran is India's third-largest oil supplier behind Iraq and Saudi Arabia. It was India's second biggest supplier of crude oil after Saudi Arabia till 2010-11 but Western sanctions over its suspected nuclear programme relegated it to the seventh spot in the subsequent years. In 2013-14 and 2014-15, India bought 11 MT and 10.95 MT, respectively from it.
Iranian oil is a lucrative buy for refiners as the Persian Gulf nation provides 60 days of credit for purchases, a term not available from substitute suppliers of crude -- Saudi Arabia, Kuwait, Iraq, Nigeria, and the US.
Bilateral trade between India and Iran increased to USD 13.8 billion in 2017-18 from USD 12.9 billion in the previous fiscal. However, India's exports were only worth USD 2.5 billion to that country.
Talking abut trade with China, he said India has a "historical trade deficit" with the neighbouring country.
"We have also told China to bring in investments in India. They will set up industrial parks and manufacture goods which are beng imported by India," he added.
The trade gap with China has increased to USD 63.12 billion in 2017-18 from USD 51.11 billion in 2016-17.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)