Transit Trade
As reported, IRISL will ship India’s export products that have been transported from the east via railway to the western ports of the country, to deliver them to Russia and Commonwealth of Independent States (CIS) markets.
Considering that the Indian government and businessmen are very interested in developing business activities with Russia, CIS and Iran through the INSTC, the Islamic Republic of Iran Shipping Lines has launched regular container shipping lines from the western ports of India to the southern ports of Iran.
In the meantime, executive and marketing measures have been also taken to strengthen and develop cooperation with the Indian sides to transport the country's export and import goods to Russia and the CIS markets.
IRISL has taken effective steps in recent months to strengthen its shipping activity along the North-South corridor by managing the Russian port of Solyanka on the shores of the Caspian Sea as well as making huge investments in developing this port.
In early April, IRISL formed an operational working group for the development of transportation along INSTC and the company allocated 300 vessels to the transportation of goods through this corridor.
Currently, most of the commodities that are transported through Iran along the INSTC are shipments from Russia for India.
To be transited through the north-south corridor, cargos enter northern Iranian ports on the Caspian Sea shores and then transferred by road to the southern ports of the country on the Persian Gulf. From there they are loaded onto a ship and sent to their destinations in East Asia.
Trade between Iran and India
The value of Iran’s export to India increased by 40% in the first eight months of 2022 as compared to the same period in 2021, IRNA reported citing the data released by the Indian Ministry of Commerce and Industry.
As reported, Iran exported commodities worth US$407 million to India in the eight-month period of this year as compared to US$290 million in the same period.
Petroleum products and fruits were the major products Iran exported to India. Iran exported US$102 million worth of petroleum products and US$101 million of fruits to India.
During January-August of the present year, India’s export to Iran also increased by 56% to US$1.384 billion, while the figure was US$886 million in the first eight months of 2021.
Rice and tea were India’s major products exported to Iran, these included US$913 million worth of rice and US$63 million worth of tea to the Islamic Republic.
According to the Indian Ministry of Commerce and Industry, the value of trade between Iran and India was reported at US$1.791 billion during January-August 2022, rising 52% from US$1.176 billion.
Based on the mentioned data, India's imports from Iran in August doubled compared to the same month in 2021 reaching US$46 million. India imported US$23 million worth of goods from Iran last August.
Indian exports to Iran in August 2022 also increased by 80% to US$141 million from US$78 million in August 2021.
In late May, Iranian Ambassador to India Ali Chegeni said that Iran and India are trying to diversify the channels of payments to expand bilateral trade.
In an exclusive interview with Financial Express Online, Chegeni said, “We are trying to diversify the channels of payments and accordingly wish to extend and expand an already existing mechanism in order to cover all of the goods and services including all of the non-oil goods and to achieve this”.
“During the past two years, because of Covid restrictions, we pursue the issue via virtual dialogues and currently, our officials are following the matter through the exchange of delegations”, the envoy stated.
“We want to develop our economic and trade relations beyond energy and petrochemical products. Due to the complementarities of Iran and India's economies, an extensive range of non-oil trade exists between the two sides including trade on goods and services, investment, tourism, education, and … which may pave the way for multiplying our economic relations ten times more than current relations in mid and long terms”, Chegeni said.
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