Date:22/02/2005 URL: http://www.thehindubusinessline.com/2005/02/22/stories/2005022201940400.htm

Back Iran eases visa, stay permit rules for businessmen

Our Bureau

New Delhi , Feb. 21

IRAN on Monday announced its decision to grant multiple-visit three-year visas to Indian businessmen and investors and also liberalise stay permits for increasing business ties between Iran and India.

The visiting Iranian Minister for Foreign Affairs, Dr Kamal Kharrazi, disclosed this at the eighth India-Iran Joint Business Council meeting under the aegis of the Federation of Indian Chambers of Commerce and Industry of India (FICCI) here. He said that the decision to liberalise the visa and stay permit regime comes in the wake of the huge potential for raising the level of bilateral business ties.

Dr Kharrazi dismissed concerns over the repeated outbursts by the US against Iran as unfounded , saying that "despite sanctions, the flow of foreign investments into Iran and business collaborations have remained unaffected in small, medium and mega industrial projects."

He attributed the sustained interest in Iran to the enactment of the Investment Protection Act; the four-10-year tax exemption, especially in Special Free Trade Zones; the abolition of non-tariff barriers; the reduction of taxes from 65 per cent to 25 per cent; the speeding up of privatisation; the establishment of private banks; the unification of the foreign currency rate and the drop in inflation rate.

The Iranian Minister said that recent developments had laid the foundation for closer cooperation among the countries in the region. He said the time is now ripe for the formation of an economic bloc in the South Asia axis for regional convergence and establishing links among similar blocs in South-East Asia, the Persian Gulf and Europe. Dr Kharrazi said New Delhi's approval of the Iran-Pakistan-India gas pipeline had created an encouraging atmosphere for pushing ahead the project.

He said the close Indo-Iranian cooperation is due toan agreement among Iran, India and Russia on the international North-South Transport Corridor. By the inclusion of eight other nations in the agreement, the corridor has improved the connectivity between Asia and Europe, reducing considerably the cost and as well as the duration of movement of merchandise.