India's Iranonomics: Centre wants Tehran to agree on rupee payment

The government is banking on its long economic and political partnership with Iran to start talks on establishing a rupee-based trade mechanism, similar to an earlier one between both nations.

The move has been triggered by Delhi’s wariness of Beijing’s growing focus on capturing export markets in Iran. And, on uncertainty over how crude oil import from Iran will be paid for if the current currency of choice, the euro, is also hit by the recent sanctions, a senior commerce ministry official said. The sanctions come when major Indian exporters from sectors such as textiles and engineering are heading to