MUMBAI, June 9 (Xinhua) -- Iran is exploring an alternative banking mechanism within the framework of the international law to promote two-way trade with India, said visiting Iranian Foreign Minister Hossein Amir-Abdollahian here Thursday.
"I had a fruitful discussion with senior ministers of the Indian government to establish such a banking mechanism," the foreign minister told an interactive meeting organized by MVIRDC World Trade Center Mumbai, an international trade promotion organisation, and All India Association of Industries, an industry body.
Both sides discussed the possibility of rupee-rial trade and agreed on a conducive legal mechanism to promote two-way commerce, said the minister, who is on a three-day visit to India.
Apart from establishing a banking mechanism, the two countries have also explored the possibilities of settling trade transaction in rupee or through barter system, he said.
Within the framework of the international law, there are existing banking mechanisms which Iran has already implemented with a dozen countries, the minister said.
Earlier in his welcome remarks, Vijay Kalantri, chairman of MVIRDC World Trade Center Mumbai, said bilateral trade between Indian and Iran is less than 2 billion U.S. dollars.
There is "untapped potential to raise it to as much as 50 billion dollars if both the countries launch rupee-rial trade or barter trade that can reduce transaction cost and increase volume of trade," Kalantri said. ■