Sanctions-hit Iran may grant licences to Indian banks

In a bid to open its economy further for foreign investments, Kord Zanganeh, chairman of Iranian Privatisation Organisation said, 8220;Indian companies can set up plants in Iran, set up joint ventures with Iranian partners or even buy stake in our companies. We are in the process of divesting some of our state owned companies SoE and we welcome Indian companies to buy even 100 per cent stake in the SoEs.8221;

Indian industrialists and External Affairs Ministry officials have said that it was not just the Iranians who are keen to forge stronger business links with India. The desire was mutual and business was quietly prospering despite the unhappiness of New Delhi8217;s new friends in Washington, they said. Some analysts, however, say that Iran badly needs to build such relations as it seeks to integrate its economy with the rest of the world but is handicapped by US and UN sanctions over its nuclear ambitions.

Representatives of pharma and textiles industries showed interest to invest in the Islamic state. A pharma firm representative, on the condition of anonymity, said that the margins on exporting drugs to Iran is substantial. However, he also complained about the roadblocks in the form of too high anti-dumping duty.