(MENAFN) India's exports to the Persian Gulf country rose steeply, as Iran needs to buy goods from India to make use of the rupees that it gets for its oil exports.
According to UCO Bank, which handles trade with Iran, India's exports to Iran currently stand at about USD500 million, compared with USD40 million a year back, a sharp rise of over 12 times.
The U.S. government has eased restrictions on India (as well as China and South Korea) for buying more oil from Iran.
Also, though not formally agreed upon, Iran wants India to pay 55 percent of its oil dues in euros. Therefore, experts see Iran accumulating more rupees and the only way it can use the money is by buying goods and services from India.
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