New Delhi: The Associated Chamber of Commerce and Industry of India (ASSOCHAM) says the deal between Iran and six major powers of the world is a big positive for most of the developing nations, especially those importing crude oil like India. It would not only reduce India’s import bill as energy prices ease, but also make a big difference to inflation, which has remained bane of the Indian economy for the last six years, more so at the retail level.
“For now, since the UN sanctions on oil stay intact, the deal would not make a major difference in India’s crude oil imports from the Persian nation. However, it has come as a major boost to the sentiment reflected in a sharp drop in the crude oil prices today itself – a development of significant gain to India. The deal also marks return of political stability in the Middle –East,” says Mr. Rana Kapoor, President ASSOCHAM.
He said, India must support such efforts whole-heartedly since our stakes are quite high as a net energy importer and the potential Iran and other countries hold for Indian exports, which had remained badly affected because of the sanctions on Iran over its controversial nuclear programme.
India’s total exports to Iran were merely USD 3.7 billion in 2012-13, much less than potential, under the impact of sanctions. Our imports of crude oil from Iran can give us better supply leverage, while increased production would bring down prices in any cases.
“Countries like India should also build international pressure to ensure that the interim deal with Iran is converted into a full-fledged agreement with lifting of all the sanctions including all-important oil export restrictions. After all, it is in the interest of the global trade,” said the ASSOCHAM Chief.