Login With Google
Rupee pact with Iran to aid pharma exports
Why is it in the news ?
- A rupee payment mechanism agreed upon recently by India and Iran.
- This will give an opportunity to Indian pharma sector to increase its exports to Iran.
More in the news
- Indian refiners make payments in rupee for oil imports from Iran, to designated accounts maintained with UCO Bank.
- A portion thus received is to be used by Iran to pay for imports from India, including pharmaceuticals.
- Indian pharma exports to Iran were at $124.05 million last fiscal.
- Iran has a well-established pharma industry that meets 80% of the country’s requirement. The remaining 20% is met predominantly through imports from Europe.
- Constituting mostly APIs (bulk drugs), Indian pharma exports to Iran have been declining in recent years.
Sanctions cloud and Opportunity:
- With a cloud of uncertainty hovering over continued pharmaceutical supplies from Europe in the wake of the U.S. sanctions against Iran, the Indian pharma industry could explore opportunities to step up exports, he emphasised.
- The U.S., had in May last year, come out from a nuclear accord with Iran and re-imposed sanctions.
- However, under US sanctions, India will be allowed to export farm commodities, food, medicines, and medical devices to Iran.
Source
The Hindu.