India-Iran trade, investment seminar in Tehran
By Salman Ansari Javid
The Embassy of India along with Confederation of Indian Industry (CII) organized a seminar entitled "India-Iran Trade and Investment" Thursday morning at the Parsian Evin Hotel. Businessmen and officials from both countries were in attendance to promote their countries' potentials in technology, investment and trade.
Present at the seminar was the Indian Ambassador Shri Sanjay Singh, Director General of the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI) Saman Ghasemi, Director General of Trade Promotion Organization (TPO) Amir Talebi, Representative for Iran Chamber of Commerce R. Danishmand, and Chairman and Managing Director of Kirloskar Electric Co. Ltd. Vijay R. Kirloskar who was heading a 15-member delegation from CII.
Managing Director of Heavy Industrial Minerals India Pvt. Ltd. Chitranjan Kapur was the CII mission's co-leader and presented the speakers.
Indian Ambassador was the first to go on the podium. Sanjay Singh said that India and Iran are both cradles of civilization. He pointed out that bilateral ties between the two countries are marked today by high level visits from officials of both countries. The size of Indian economy, which has had over 8 percent growth since 20002, was $1.2 trillion and average income in India was set to double in a decade, Singh added.
Iran is India's second largest crude supplier and India is Iran's third largest market.
"Our meeting today is in augmentation to the 16th Iran-India Joint Commission meeting in July in Delhi," the ambassador said.
Director of TPO was the next presenter. Talebi said that "growth of Iranian exports to India in the past few years was over 70 percent." Iran ranks fourth in terms of diversity of agricultural products and seventh in terms of tourist attractions in the world, the TPO director pointed out.
Mineral reserve is another asset for Iran which boasts 195,000 mines presently and producing some 230 million tons of mineral products per year.
Talibi said another sector for investment and trade with Iran is the auto industry, the largest in the Middle East.
There are 11 ports in Iran with some 128 million tons of cargo transiting every year and many free trade zones with can help boost Iran-India cooperation.
Iran can also offer a wide variety of technical and engineering services including power lines, plants, electronics industry, information technology, construction of dams, tunnels and bridges, with the main export partners in the Middle East and CIS countries.
Talebi concluded by proposing signing an agreement on commodity standards and establishing joint export companies.
Managing Director of Kirloskar Electric Co. Ltd. started his presentation by pointing out the close cultural ties between the two countries and said that "before the British India the court language of northern India was Persian."
Bilateral trade between the two countries stood at $13.35 billion for 2009-2010 with more trade promotion and agreements in the pipeline. He pointed out that the largest Indian bank, the State Bank of India, had a branch office in Iran and should be used to promote trade.
Kirloskar said that the potential of Indian companies is not known in Iran and needs an awareness program. Iranian public and businesses should know that India makes quality products using the latest technology.
CII is a non-government, non-profit organization founded 114 years ago, and "it is India's premier business association, with a direct membership of over 8,000 organizations and 90,000 companies," he added
Ghasemi of OIETAI started his presentation by pointing that the first FDI opportunities conference was held in India this year with over 200 participants exhibiting the two countries capabilities.
He praised Iran's ideal geographical location, between the Caspian Sea and the Persian Gulf, at the crossroads between East, West, North and the South.
"Iran is the world's fourth largest oil producer, has the second largest gas reserves, it is the biggest industrial center in the region and is ideal for FDI and contractual investment," Ghasemi said.
"Tax exemptions are the other incentives for business investments in Iran," he said pointing out that the agricultural and tourism sectors were 100 percent and 50 percent tax exempt, respectively.
For investment opportunities in Iran Ghasemi referred the audience to the website:
Iran Investment opportunities which among other things also explains risk coverage by the Iranian foreign investment law (FIPPA).
Following a tea break various CII members made presentations for their companies, including Indo-Iran JV Project and Forbes Marshal Pvt. Ltd.
Representative of the Iran Chamber of Commerce Danishmand was the last presenter of the day. He pointed out the importance of the North South Corridor for transit of Indian goods from Bandar Abbas Port to Anzali Port to Caspian Sea to Russia, CIS and European countries.