New Delhi: With a bilateral trade of USD 13
billion, India is considering to set up banking facilities in
Iran where the Indian industry has established a large
presence in the areas of steel, mining and energy.
Central banks of the two countries have recently
discussed the proposal to set up the banking facilities on
"Last week the Central Bank of Iran and the Reserve Bank
discussed (the proposal) to initiate the banking facilities in
the two countries and pave the way for cooperation in the
insurance sector," Iranian Ambassador to India Syed Mehdi
Nabizadeh said today.
Addressing the India-Iran Joint Business Council meeting,
convened by the FICCI, Nabizadeh said the two countries would
be able to reach an agreement for setting up banks on
While several Indian firms, both in the public and
private sector have established business ties with Iran, lack
of adequate banking facilities come in the way of improving
Tata Steel and Essar are among the Indian business houses
that have established presence in Iran, while Iranian firms
active in India include National Petrochemical Company of Iran
and National Iranian Oil Company.
"We have to overcome the problem of banking services, if
we want to increase trade and research and development," said
President of the Iran Chamber of Commerce, Industry and Mines
President M Nahavandian. He is also Adviser to the Iranian
President Mahmoud Ahmadinejad.
Total Indian investment in Iran stands at USD 4 billion.
Besides, 50 Indian projects worth USD 85 billion are under
negotiation, according to figures provided by Ficci.