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Iran and India trade declines due to COVID-19

Business Materials 11 May 2021 12:57 (UTC +04:00)
Iran and India trade declines due to COVID-19

TEHRAN, Iran, May 10

Trend:

Iran's trade balance with India has been declining due to COVID-19 that has slowed down the country's trade, said vice-chairman of Iran and India Joint Chamber of Commerce.

Coronavirus pandemic has intensified and challenged factory workers while shipping procedure has also faced a problem that caused the decline of trade between the two countries, Parham Rezaei told Trend in an interview.

"We do not import Coronavirus vaccine from India since the judiciary in India ruled out the vaccine sale (to Iran) and stated the priority is for people of India," he said.

Trade between the two countries in last Iranian year (started March 20, 2020) was around $1 billion while previously Iran and India's best non-oil trade relations was $2 billion, he said.

"There is currently no oil export to India and Iran does not have any revenues from oil export in India to be used for trade. India has paid all its debts for purchasing oil and the remaining part would be used by Iran to import medical equipment and medicine," Rezaei noted.

"There is currently no regulation to prevent the import of Indian commodities and still no news has been announced about it," he added referring to the effect of India's mutant variant on trade.

"India's coronavirus variant would affect its trade with Iran since India's factories have been affected by the pandemic but still the effect has not occurred on trade and it seems this issue would take time," Rezaei stressed.

"In my opinion, it is unlikely that commodity import from India would be banned by Iran since the issue is not precedent and so far there was no ban on import of commodity from any country even from China," he said.

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