In a bid to boost bilateral trade, India and Iran today agreed to examine the ...

In a bid to boost bilateral trade, India and Iran today agreed to examine the feasibility of using rupee and rial as currency for trade, and signed pacts to avoid double taxation.

After talks between visiting Iranian President Hassan Rouhani and Prime Minister Narendra Modi, the two nations also agreed to look at the feasibility of a Preferential Trade Agreement as well as reviving the Asian Clearing Union which was used for oil and other trade till US imposed sanctions on the Persian Gulf nation.

Both countries agreed for conclusion of Bilateral Investment Treaty in a fixed time frame, according to the joint statement issued after the bilateral meeting of heads of two nations here.
 

"The two Leaders agreed on the deepening trade and investment cooperation between the two countries. In this context, they recognised the need to put in place an effective banking channel for business transactions. It was noted that permission for the Iranian Pasargadbank to open a branch in India was under advance consideration," it said.

"It was also agreed to set up a Joint Committee of officials to examine feasible options, including Rupee-Rial Arrangement, Asian Clearing Union mechanism to establish functional payment channels," it said.

Noting the complementarity of interests and natural partnership in the energy sector, it was agreed to move beyond traditional buyer-seller relationship and develop it into a long term strategic partnership, both sides agreed to continue and increase the pace of negotiation for reaching appropriate results on energy cooperation, including Farzad B gas field.

"India fully supports the accession of the Islamic Republic of Iran to the World Trade Organization and the ongoing consensus building efforts among WTO members to reactivate the accession process, consistent with the objective of making the Organization universal and inclusive," it said.

Besides, the two Leaders released a joint postage stamp depicting Deendayal Port, Kandla and ShahidBeheshti Terminal, Chabahar that reflected the enhanced prosperity through greater connectivity.

Both sides reiterated their commitment for early and full operationalisation of ShahidBeheshti Port at Chabahar, it said, adding that the Iranian side welcomed the investment of Indian side in setting up plants in sectors such as fertilisers, petrochemicals and metallurgy in Chabahar FTZ on terms mutually beneficial to the concerned parties.

The Iranian side expressed its readiness to enhance enabling environment to attract Indian private/public sector investments, in Chabahar FTZ, the statement said.

In this context, Iran will organise a business promotion event, with participation of countries from the region and beyond, with the objective of showcasing the economic opportunities offered by the Chabahar Port, it added.