NEW DELHI (Dispatches) - The Indian pharmacy industry now has an opportunity to increase exports to Iran, following a rupee payment mechanism agreed upon recently by India and the Persian Gulf nation.
Under the agreement, 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 pharmacy exports to Iran were at $124.05 million last fiscal. Iran has a well-established pharmacy industry that meets 80% of the country’s requirement. The remaining 20% is met predominantly through imports from Europe,” said Ravi Uday Bhaskar, director general, pharmaceuticals export promotion council of India (Pharmexcil).
With a cloud of uncertainty hovering over continued pharmaceutical supplies from Europe in the wake of the U.S. sanctions against Iran, the Indian pharmacy industry could explore opportunities to step up exports, he emphasized.