Iran had agreed to accept 45 percent of payments for Iranian crude oil in Indian rupees and India will invest in Iranian infrastructure, while Iran will use the currency to buy Indian goods. Next to Saudi Arabia, Indian is the second biggest crude customer for Tehran, with 12 percent of the country’s crude oil import coming from Iran.
Under the agreement, 45 percent of the payments would be made in Indian rupee through three banks gold is not a suitable option for payment and Iran can use the money for buying machinery, metal products, iron, steel, minerals, clothes, fibre, sugar, tea, wood and automobiles in India, among others. t Iran has opened accounts in Indian banks, including UCO Bank, to facilitate the rupee payment.
India has been paying for its daily imports of 350,000-400,000 barrels from Iran through Turkey’s Halkbank. India currently imports around 70 percent of its Crude oil, and around 12-13% percent of the imports are from Iran.
Now there is an opportunity for Indian companies to look at investing in projects in Iran such as developing gas-to-liquid plants, mining, building roads and railways infrastructure and developing oil and gas field