Tata Motors is in negotiations with Iranian firm Kerman Khodro for setting up an assembly line for 20,000-30,000 cars in Iran.
Speaking on the sidelines of an interactive session organised by the Confederation of Indian Industry (eastern region), S M R Dolatabadi, economic counselor, Iranian Embassy, said that negotiations were on and some automobile manufacturers were also showing interest in Iranian market. Iran was also looking major co-operation with India in the field of petrochemicals.
S Z Yaghoubi, Iranian ambassador, said, "We will take a big step in petrochemicals in the next one or two years."
Out of the $2.67 billion Indo-Iranian trade, oil accounts for $900 million. Iran has the second largest reserve of gas reserves in the world.
Yaghoubi said that a gas pipeline project was also being discussed. The routes could be offshore, deep sea, shallow sea or even onshore.
He, however, clarified that in the backdrop of the political relations between India and Pakistan, a strategic decision would have to be taken.
The contribution of Indo-Iranian trade is significant given that the trade between Saarc countries stood at $6 billion.
Yaghoubi said, according to the Tehran Declaration the four areas of co-operation that could be explored with India were energy, defence, hi-tech, transit & transport. He added, another area where India could participate was reconstruction of Iraq.
According to him, metals also had good potential for co-operation. Steel, aluminium and copper were segments where if Iran and India joined hands, they would have a greater say in the world market.
The Confederation of Indian Industry is planning to send a delegation to Iran to explore opportunities in the mining sector, especially mining equipment.