India's exports to Iran to touch USD 6 bn in 2013-14: FIEO

MUMBAI: The value of Indian exports to Iran is expected to touch USD 6 billion in 2013-14 from the present USD 4.5 billion, according to apex exporters body FIEO.

"The opening of letter of credit from Iran under the rupee payment mechanism has been impressive touching about USD 400 million on monthly basis.

"With the new provision being put into place, we can look for exports close to USD 6 billion in 2013-14," Federation of Indian Export Organisations (FIEO) President M Rafeeque Ahmed said in a statement here.

Hailing the notification permitting export of imported goods to Iran with 15 per cent value addition, Ahmed said the move will benefit Indian exports and we can look forward for sizable growth in India's exports to Iran in the current fiscal.

Ahmed suggested that the government should put a cap on such exports so that the basic idea of promoting manufactured exports from the country remain in focus and the new provision is tested on a limited scale.

India's imports from Iran, which mainly comprise crude oil, are expected to fall to around USD 10 billion this financial year because of a decline in oil prices, FIEO said.