Source India Iran 12 - 14 February 2018

South Musalla Exhibition centre, Iran (Islamic Republic Of)

Trade Promotion Council of India is organising the 5th edition of the Source India show in Iran during 12-14 February 2018 at South Musalla Exhibition centre, Tehran Iran. The successful edition of the Source India shows have been organised in Kenya and Ghana with satisfied exhibitors and business visitors.

 

Source India Iran is trade show cum BSM (Buyer Seller Meet) with a focus on cost effective promotion of Indian exporters in Iran and facilitate direct access to potential buyers and influential decision makers. It is expected to have about 3000 trade visitors from Iran and other neighbouring countries where approximately 200 Indian exhibitors will be exhibiting and showcasing their products.

 

Iran is the second largest economy in the Middle East and North Africa (MENA) region after Saudi Arabia, with an estimated Gross Domestic Product (GDP) of US$412.2 billion in 2016. Iran imported USD 46 billion worth of products from the world in 2016. Major products imported are machinery, food and agriculture, IT and Telecom. Other products imported by Iran include healthcare, pharma, textiles and chemicals. India exported USD 2 billion worth of products to Iran making it the 10th largest exporter to Iran .Major products exported are food and agriculture, chemicals and machinery. With end of international sanctions on Iran, India’s access to the West Asian country, especially for food and allied products, machinery and tools, infrastructure projects, and pharmaceutical products is expected to increase significantly, hence it is the right time to participate and explore the highly potential Iranian market.

 

Interested members or exhibitors may please contact Mr. Sumit Singh at sourceindia@tpci.in for participation and registration in the event.

Display Product zones

The show is divided into 7 sectoral zones. Please select your industry to know more

Apparels & Textiles

Iran has recently announced it will resume import of fabrics from countries producing the best quality material from India, which had earlier expressed readiness to export cloth to Iran once the sanctions were removed.

Experts contend that growing interest among foreign textile producers to export to Iran will benefit the domestic textile industry by creating a competitive market.

To reduce their dependence for growth on the European Union (EU) and American markets, Indian garment exporters are exploring business opportunities with Iran.

After setting a target of $47.5 billion at the start of the season, exports were no more than $38 billion for financial year 2015-16, from $40 billion the previous year. With a host of incentives and a Rs 6,000 crore package announced in the past few months to boost textile and apparel exports, the government has set a target of $50 billion for 2016-17.

Key Facts:

  • Iran imported USD 2.2 billion of Textile & Apparel Products in 2016 from world.
  • India exported USD 250 million worth of Textile & Apparel products to Iran in 2016.
  • Major Textile & Apparel products exported from India to Iran includes Woven Fabrics, Acrylic staple fibres, cotton, ready made garments, imitiation jewellery .
  • Iran has recently announced it will resume import of fabrics from countries producing the best quality material from India, which had earlier expressed readiness to export cloth to Iran once the sanctions were removed.
  • India is the 2th largest exporter of Textile raw materials products to Iran including cotton, silk, staple fibers etc.

Export Potential of India to Iran
(Values in %)

IT & Components

Iran's domestic consumer electronic market, defined as including computing devices, mobile handsets and video audio and gaming products, was estimated at $7.3 billion in 2008 ($8.2 billion in 2010), with 47% market share for computer hardware, 28% Audio/Video and 25% mobile phone (with growing demand for PDAs, smart phones and 3G/4G handsets). Business Monitor International (BMI) forecasts that Iran's demands for domestic consumer electronic devices will reach $10 billion .Iran is among the first five countries which have had a growth rate of over 20% and the highest level of development in telecommunication. Iran's Ministry of Communication and Information Technology along with TCI are developing the landline telephone network in the towns of Karbala and Najaf in Iraq.

With a population of almost 80 million, well-educated and tech savvy, there is no question that Iran is poised for economic growth after the removal of sanctions. Although many European firms and other Asian countries have had a head start in formulating their strategies and partnerships in Iran. According to a report , careful strategy development and execution with strong Iranian partners and local staff will define the company's success in Iran's exciting and newly (re-)opened market.

Key Facts:

  • Major IT & Telecom products exported from India to Iran includes Telephone & mobile instruments , smart cards , microphone & loudspeakers , coaxial cables , mobile operators etc
  • With a population of almost 80 million, well-educated and tech savvy, there is no question that Iran is poised for economic growth after the recent removal of sanctions.
  • Iran is among the first five countries which have had a growth rate of over 20% and the highest level of development in telecommunication.
  • India is the 6th largest exporter of Microphone ,loudspeaker & amplifiers products to Iran.
  • India exported USD 12.50 million worth of IT & Telecom products to Iran in 2016.

Export Potential of India to Iran
(Values in %)

Construction & Infrastruture

Construction is one of the most important sectors in Iran accounting for 20–50% of the total private investment. The Central Bank of Iran indicate that 70 percent of the Iranians own homes. The housing industry is one of the few segments of the Iranian economy where state capital shares as little as two per cent of the market, and the remaining 98 per cent is private sector investment. There is little red tape or hurdles and, as a result, through launching mass development projects, the use of new technologies and fast-pace project execution, a larger portion of the housing market is accessible This is also true for new construction materials and technological advances.

Iran's construction industry is set to perform well over the forecast period (2016–2020), with growth driven by investments in infrastructure, energy and residential construction projects. Improvements in investor and consumer confidence due to the lifting of international sanctions will also drive funds into construction projects.

The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 6.34% over the forecast period, up from -1.64% during the review period (2011–2015).In recent years, the construction industry has been thriving due to an increase in national and international investment to the extent that it is now the largest in the Middle East region.

Key Facts:

  • Major Construction & infrastructure products exported from India to Iran includes flat rolled products of iron & steel , Building stones ,screws ,bolts , tubes & pipes etc
  • Iran's construction industry is set to perform well over the forecast period (2016–2020), with growth driven by investments in infrastructure, energy and residential construction projects.
  • India is the 4th largest exporter of Iron & steel and 5th largest exporter of Building stones products to Iran .
  • India exported USD 55.30 million worth of Construction & infrastructure products to Iran in 2016.

Export Potential of India to Iran
(Values in %)

Chemical & Allied Products

Years of underinvestment in refineries, Iran, a historical exporter of plastics and methanol, will likely become an importer of a vast array of petrochemical products in the foreseeable future. Trade sources say the country will need to embark on a major refinery and downstream petrochemicals expansion drive to reverse this trend.

Fresh from the lifting of sanctions, imposed over the country's nuclear program, Iran is still coming to terms with the requirements of a young, growing population and an economy set to gallop.

The country will also need to import other specialty grade chemicals to meet the growing requirements of multiple industries including pharmaceuticals and cosmetics. The first indication of Iran requiring to import polymers emerged when the country took the first steps to revamp its cars manufacturing capacity,

The country will also need to import other specialty grade chemicals to meet the growing requirements of multiple industries including pharmaceuticals and cosmetics. The first indication of Iran requiring to import polymers emerged when the country took the first steps to revamp its cars manufacturing capacity,

Key Facts:

  • Iran Imports of Chemical products from world worth of USD 4.2 billion in 2016.
  • India exported USD 233 million worth of Chemical & Allied Products products to Iran in 2016.
  • Major Chemical & Allied Products products exported from India to Iran includes Polyethylene, Plastic Plates/sheets/films/ rolls ,Aluminum oxide , Insecticides ,silicates of inorganic , reactive dyes, plastic sheets etc
  • Indian Plastic articles have a share of 5 % in Iran and reduced tariff of 12 % shows great opportunity to invest in Iran.
  • India is the largest exporter of aluminum oxide, 2nd largest exporter of Insecticides & rodenticdes, 4th largest exporter of Rubber Articles and 6th largest exporter of plastic articles

Export Potential of India to Iran
(Values in %)

Engineering Machinery & Auto Components

Iran's Engineering & automotive industry is the second most active industry of the country, after its oil and gas industry. Car imports have risen, from $184 million in 2002 to $1.5 billion in 2007. In 2006, the government lowered the automotive0 import tariff levels to 90 percent for light weight vehicles and since then a huge influx of imported vehicles has been witnessed in the country. The tariff level for import of heavy vehicles is even lower at 20 percent, due to low levels of local production and high demand. As a result, a variety of automotive brands are being presently imported into Iran including Toyota, BMW, Mercedes Benz (these three being the expensive and/or luxury brands), Rover, Ssangyong, Audi, Subaru, Volkswagen, Renault, SEAT Leon and variety of heavy vehicles, construction and mining equipment from leading manufacturers such as Mercedes Benz, Renault, Iveco, Mann, Kamaz, Caterpillar.

Major Import of used car have increased the imports of auto spare parts in the country.

Some facts about Engineering Machinery & Auto components industry in Iran:

  • Major Auto components exported from India to Iran includes Pneumatic Tyres, piston engine parts, Automotive filters , screws /bolts/fastners ,Axle, Tyres , motorcycles ,Tractors, small and heavy vehicle spare parts etc .
  • Iran is a leading importer of aftermarket vehicles which makes a great trade potential for spare parts manufacturers.
  • Major Engineering Machinery products exported from India to Iran includes Machine tools, hand tools , optical fibre cable , copper cable , coaxial cable , centrifugal pumps , refrigeration parts etc
  • India is the 6th largest exporter of Engineering machinery products to Iran .
  • India exported USD 122.50 million worth of Engineering Machinery and Auto component products to Iran in 2016.

Export Potential of India to Iran
(Values in %)

Healthcare & Pharmaceuticals

The Iranian healthcare industry was estimated to be worth USD 33,401 million in 2015, with a massive growth potential expected in the future.

The Iranian healthcare industry was estimated to be worth USD 33,401 million in 2015, with a massive growth potential expected in the future.

Iran has a well-developed pharmaceutical production capability, however, the country still relies on imports for raw materials and many specialized drugs. The standards regarding pharmaceutical products in Iran are determined and modified by the Pharmacopeia Council.

The market share of local production (value-wise) has declined from 85.2% to 63.4% over the past 8 (Iranian) years (2012). In this period the value of importation has jumped from 14.8% to 36.6%.The government imposes 90% tariff on the import of drugs. In 2009, 1.8 million units of pharmaceutical products worth $1.2 billion were imported into Iran. As of 2015, Iran's share of global biotechnology market is half a billion US dollar.

Key Facts:

  • Iran Imported USD 2.5 Billion worth of Healthcare and pharma products
  • India exported USD 76 million worth of Healthcare & Pharma products to Iran in 2016.
  • India holds 6% market share of Pharmaceutical & medical equipments in Iran and an annual growth rate of 2% in 2012-16, also the average tariff applied by Iran is 20% so it's a great opportunity to trade in Iran.
  • Major Healthcare & Pharma products exported from India to Iran includes Medicaments , Vaccines , Syringes ,Surgical instruments, Antibiotics etc
  • India is the 6th largest exporter of Pharmaceutical products to Iran
  • India exported USD 76 million worth of Healthcare & Pharma products to Iran in 2016.

Export Potential of India to Iran
(Values in %)

Food & Agriculture products

The Iranian food trade market is one of the most important ones in the entire Middle East. The sector is import-oriented as the demand for agricultural products is greater than production.

According to WTO-World Trade Organization, Iranian food imports made up for 9.323 billion US Dollar in 2015. Iranian food exports amounted to 5.432 billion US Dollar. Thus food trade with Iran made up for a 14.755 billion US Dollar business in 2015.

Now that international sanctions on Iran are lifted the Iranian agro industry will profit from huge investments .

Imports of food products are increasing year by year. Especially producers of meat, ready to eat-meals, tea and coffee,rice, vegetables, milk and cream, fish, non-alcoholic beverages and fruit and vegetable juices, fruits , cereals, chocolate and confectionery, cheese, curd and many other products note an enormous boost of their sales activities in Iran.

Export Potential of India to Iran
(Values in %)

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