India-Iran Trade Complementary, Preferential Trade Agreement May Be Signed By Year-End Says Iranian Envoy Ali ChegeniAli Chegeni with VP Venkaiah Naidu. (via Twitter)

The Iranian ambassador to India, Ali Chegeni, has expressed optimism that a preferential trade agreement between the two countries can be finalised by the year-end, PTI reports.

"Trade between India and Iran is complementary. Lot of opportunity is there to enhance trade. It should not be limited to rice, tea, oil and gas, beyond that there are thousands of goods which can be exchanged between the two countries," Chegeni said at an event.

Chegeni said that the talks regarding the agreement have entered the final phase and it can be signed after the the fifth round of talks to be held in New Delhi soon. He also said that a Double Taxation Avoidance Agreement has been finalised between the two countries and is waiting for the approval from Iran to be implemented.

Speaking of the US sanctions on Iran, the envoy said that the two countries can explore a barter system in addition to the rupee payment mechanism to boost trade.

"We could do barter trade with India, agriculture against agriculture, pharmaceutical against pharmaceutical and so on," he said. Chegani added that the trade between the two countries can rise to $30-35 billion in the medium-term and to $50 billion in the longer term.

He also urged Indian businesses to explore the Chabahar port as a ‘golden gate’ to reach out to Central Asian countries saying that it holds plenty of opportunities for the firms.

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