Syed Hakim Raza, president of the Indo-Iran Chamber of Commerce and Industries, recently advocated for restraint, dialogue, and diplomacy, asserting that trade should not be compromised by political brinkmanship. He underscored that peace is an economic necessity, beyond its moral imperative, citing the substantial human and economic impact of conflict.
Historically, India-Iran bilateral trade was robust and mutually beneficial, reaching approximately $17-18 billion annually. This exchange largely involved Iranian crude oil exports to India at favorable rates, complemented by Indian exports of basmati rice, tea, pharmaceuticals, machinery, and engineering goods to Iran.
However, recent international sanctions and escalating geopolitical confrontations have severely impacted this trade, causing an 80-85% contraction and reducing it to an estimated $2-3 billion. Raza highlighted that post-conflict reconstruction in Iran could generate tens to hundreds of billions of dollars in economic activity, presenting a significant opportunity for Indian industries and employment if India were to participate in 5-10% of this reconstruction across sectors such as infrastructure, pharmaceuticals, agriculture, energy, and engineering services.
Source: https://www.thehindu.com/news/national/karnataka/peace-is-not-only-a-moral-imperative-it-is-an-economic-necessity/article70696608.ece
