Media reports indicate that Iran may not be favourable to India’s proposal for increase in crude oil import from the Persian Gulf nation.
This is because Iran does not import enough commodities from India to compensate for its rise in crude oil export to India.
With the imposition of sanction by Western countries, India exchanges crude oil from Iran through barter system.
This system requires that Iran imports as much value of goods from India as is equal to India’s oil purchase from the nation.
However, while India had imported 13.3 million tonne crude oil from Iran in 2012-13, IranÂ’s imports from India were a mere $3.4 billion.
In short, IranÂ’s Indian imports are not setting off IndiaÂ’s Iranian imports. This is likely to prompt Iran to not agree to IndiaÂ’s plans to pay more rupees for oil, reports indicate.
IndiaÂ’s aimed to import 11 million tonne of oil from Iran, which is roughly estimated to be around $8.5 billion. If done under the payment system, pressure on the rupee could have done to that extent.