Iranian Minister underlined potential gains for boosting Iran India economic ties

Iranian Energy Minister Majid Namjou focuses on the importance of boosting Iran and India economic relations. Economic potentials and capacities should be furtherly expanded and trade and economic ties with New Delhi must be strenghthen says Namjouwith.

TEHRAN / NationalTurk – Iranian Energy Minister Majid Namjou said Iran and India enjoy abundant economic potentials and capacities, and reiterated Iran’s eagerness to further expand trade and economic ties with New Delhi.

Majid Namjou called on the Indian investors to invest in Iran’s economy, and pressed that financial environment has been created by the Iranian government to encourage investors, Indians among them.

Addressing an Interactive Business Meeting with President of Federation of Indian Chamber of Commerce and Industry (FICCI) R V Kanoria Wednesday in New Delhi, he pressed that there were huge opportunities to do business with Iran’s private sector that remains largely unaffected by the illegal sanctions imposed by the Western countries.

Recent reports from India said that the Southeast Asian state imported 60,000mt of methanol from Iran in September which is higher than the typical 40,000-45,000mt/month imported before the imposition of western sanctions against Tehran.

Since May 1, European Union-based insurers have been barred from providing insurance cover for Iranian petrochemical shipments to even non-EU countries under EU sanctions against the Islamic Republic over its nuclear program.

China, which was a key buyer of methanol from Iran, bought 38,423mt of methanol from Iran immediately after the sanctions in June. Prior to the sanctions, Iran sent an average of more than 100,000mt/month of methanol to China, Chinese customs data showed, with volumes exceeding 200,000mt on some months.

India does not provide any official import/export data. But traders estimate that “in September, a ball park estimate of Iran imports would be 60,000mt”. This estimated volume is higher than the typical 40,000-45,000mt/month that was imported before the sanctions, a trader said.

One end-user of methanol estimated that India is importing around 60-65% of its methanol requirements from Iran this year, compared to around 50% last year.