Trade Increase Between India and Iran
Efforts by India to establish a trade increase between India and Iran should hold interest to investors for several reasons. India has decreased its imports of oil from Iran. This is in compliance with demands by the United States for sanctions against Iran for its nuclear program. Nevertheless India is still Iran’s second leading purchaser of crude oil and a historic trading partner. Despite the ongoing difficulties between Iran and the USA, India seeks a trade increase between India and Iran. One is by encouraging Indian exporters to sell foreign-made products to Iran, adding a fifteen percent profit along the way. Unfortunately, for India, payments for oil in Rupees are substantially more than what Iran uses to buy products from India. India exported about $3 Billion in goods and services to Iran in 2013 and paid around $11 Billion for crude oil. The hoped for trade increase between India and Iran may include exports from India of consumer goods, auto parts, chemicals, and engineering materials. An interesting possibility for investing in foreign stocks might be to invest in an Indian company such as those planning to upgrade the Iranian port of Chabahar on the Gulf of Oman.
Countering Chinese Influence in the Region