TPCI suggested product list to Department of Commerce, Govt. of India for proposed India-Iran Preferrential Trade Agreement negotiation
With the process of lifting of sanctions on Iran by the United States, Iran is going to be a preferred export destination for many countries, including India.
As per information received India and Iran have commenced discussions for a Preferential Trade Agreement. TPCI received a communication from Department of Commerce (DoC) seeking inputs on list of products of importance from the Indian perspective for seeking concession from Iran in the proposed PTA.
TPCI research team made an analysis of the initial list of products drawn by the department and have suggested two sets of product to be considered in the said PTA.
The first set of products include the list of products already suggested by the department with additional list of 21 products as these are exported by India to Iran having significant share in Iran’s import in 2015, but have the potential to increase the market share by a considerable volume.
The second set of products comprises of 65 products which India exports to the world, excluding Iran and Iran imports from rest of the world. India has a significant export potential to include Iran as a destination for these products. These products are vital in strengthening the manufacturing base and employment generation of the Indian economy as 2/3rd of these products are capital intensive in nature requiring skilled/semi-skilled labor and technology.
TPCI also suggested that raw materials should not be considered in such negotiations as these items are major inputs in domestic production and always have high global demand.
The two list of products drawn by the TPCI research team after considering benchmarking parameters along with their justifications were suggested to the ministry for further deliberations in the proposed PTA to seek concessions from Iran.