Post his recent visit to Iran, Ashok G Rajani, Chairman, AEPC (Apparel Export Promotion Council) is of the view that there is an impeccable possibility for India to capture the growing Iranian market.
“Although it is small market at present, there is scope for growth in the immediate future and we want India to be an important partner in this growth,” averred Rajani, who along with four Executive Committee Members of the Council visited the country to explore business opportunities there.
While India’s share in Iran’s RMG import was 2.5 per cent in 2015, Iran’s RMG import from around the world has shown a growth of 43.3 per cent in 2015 which has increased to US $ 825.9 million in 2015 from US $ 576.2 million in 2014. These figures show that India has a great chance to increase its share in the Iranian market.
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In addition to this, meetings with Iran Textile Export Association, Tehran Chamber of Commerce and Tehran Textile Union were also held to discuss on how to reduce tariffs and facilitate market access as Iran has seen a progressive reduction in tariffs from 300 per cent during sanctions to the present 55 per cent. The high tariffs had resulted in unofficial imports being over 10 times the volume of official imports. Thus, the trade associations have been working with the Government for reduction in import duties to international levels which becomes important as Iran wants to be part of WTO and hence align to WTO’s tariff levels.
