New Delhi: With the lifting of nuclear-related sanctions against Iran, Indian products would face tough competition in the market, exporters’ body FIEO on Thursday said.
Federation of Indian Export Organisations (FIEO) President S C Ralhan said that now all the major exporting countries including China, the US and Europe would rush to tap the Iranian market and in this scenario, Indian products would face tough competition.
“The competition will intensify now after lifting of the sanctions. Indian exporters would have to price their products accordingly and also enhance standards to remain competitive in the Iranian market,” Ralhan told PTI.
However, he added, the prices of raw materials such as crude oil would come down further.
This would help in balancing the trade balance between India and Iran. While India’s exports to Iran stood at $4.17 billion in 2014-15, imports were aggregated at $8.95 billion. The trade balance is in the favour of Iran.
He said India should now focus on exporting both goods and services in sectors such as IT, iron and steel, chemicals and machinery as investments would increase in Iran after lifting of the sanctions.
India mainly exports cereals, man-made fibres, plastics, pharmaceuticals, chemicals, steel and aluminum to Iran.
The bilateral trade between the two countries may also get a boost with the two nations considering a free trade pact.
India and Iran have agreed to examine the scope and the feasibility of entering into a preferential trade agreement.
Commerce Secretary Rita Teaotia had recently said there has been a robust rupee trade between the countries and India would continue to build on that.