India, Iran finalize rupee as trade currency
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Tehran Times - 12 December, 2012
http://gitm.kcorp.net/index.php?id=625788&news_type=Economy&lang=en

The Indian rupee has been made the official currency for trading between
India and Iran. It has also been decided that UCO Bank will be the official
bank for transactions.

Following this conclusion after a long debate, Pharmaceutical Export
Promotion Council of India (Pharmexcil) is organising a business delegation
trip to Tehran from December 17-19, 2012 in order to boost pharma exports
between the two countries.

The total pharma market in Iran is $ 3.2 billion, divided between generics
(contributing $ 1.78 billion), patented drugs ($ 1.13 billion) and OTC drugs
($ 0.36 billion).

Commenting on this latest development, Dr PV Appaji, Executive Director,
Pharmexcil said, “The Government of India is keen on improving pharma
exports to Iran. After a long debate, both the countries have agreed that
rupees is going to be the official currency for trading purpose. India
imports huge quantities of oil from Iran and the Government of India is thus
trying to balance trade between both the countries.”

Appaji continued, “Iran needs bulk drugs and our objective is to supply
materials to Iran. After the recent communication between India and Iran we
had taken a delegation to Iran. We are taking a 25-member delegation to Iran
from December 17-19, 2012 to continue this exchange. On the same trip, we
will be organising meetings with local pharma manufacturers, importers, as
well as trade associations. The Indian Embassy is coordinating with U.S. to
accelerate this process.”

In the last three years, exports from India to Iran have observed a downward
trend. During 2009-10, the bulk drugs exports were $ 69 million, which
decreased by eight percent to $ 61 million in 2010-11. However, it showed an
upward trend of one percent from $ 61 million to $ 62 million in 2011-12.
Similarly the formulations business also observed an increase of six percent
from $ 45 million 2009-10 to $ 51 million 2010-12. However, there has been a
dip to $ 36 million in 2011-12.