India considers Iran for its oil import to slash import bill, CAD
With rupee declining to record lows impacting the import bill and Current Account Deficit (CAD) severely, the Oil Ministry has formulated a plan to save $22 billion in the oil import bill from Iran thus helping slash the CAD. Due to sanctions on Iran, India has not been buying crude petroleum from the country for past few months.
The step, if taken, would significantly save Indian foreign exchange as India pays Iran in rupees. Keeping in view the current depreciation of the rupee against the dollar, India is negotiating with Iraq the possibility of trade in local currencies, which would help insulate India’s oil imports from Iraq also.