Azerbaijan, Baku, May.22/ Trend, F. Karimov/
Iranian and Indian officials have been discussing conditions for the barter of crude oil for machinery used in textile production, Mehr News Agency reported.
"Iran is a major exporter of crude oil to India. The two countries have reached agreements on bartering Iranian crude oil for Indian textile machinery," Mehr quoted Iranian Trade Promotion Organization deputy director Reza Tofiqi as saying.
On Sunday, around 60 leading companies held an exclusive textile exhibition in Tehran.
Indian deputy minister of textiles, Mrs. Zohra Chatterji, attended the exhibition. She said that Iran is currently importing 13 percent of its needed textile machinery from India, but the figure could double in the future.
India is looking to broaden its range of exports to Iran to help balance bilateral trade under an agreement that allows the countries to bypass Western sanctions, Indian government and industry officials said.
India is one of the largest buyers of Iranian crude oil. So far, 85-90 percent of India's exports to Iran have been agricultural products such as basmati rice and soymeal.
But now, India plans to also export products such as textiles, pharmaceuticals, medical-diagnostic equipment, auto components and consumer goods.
"We are looking to diversify our exports," said Ajai Sahai, who is the director general of the Federation of Indian Export Organizations.
Last year, India and Iran entered into an agreement in which India would pay for about half of its crude oil imports from the Middle Eastern country in Indian rupees instead of U.S. dollars.
The move followed U.S. sanctions that have shut Iranian crude out of the global market.
But the value of India's exports to Iran is far lower than the value of its imports. India exported $2.95 billion worth of goods to Iran in the last financial year which ended on March 31, while Indian imports from Iran totaled around $11 billion.
India's imports from Iran, which mainly comprise of crude oil, are expected to reach about $10 billion this financial year because of a decline in oil prices.
Mr. Sahai said the trade organization aims to raise the value of Indian exports to Iran to around $4.5 billion to $5.0 billion in this financial year.
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