oil import, india iran trade relations, Crude oil

With the US exemption on oil imports from Iran, the Modi government received huge relief till the election.

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The Modi government, struggling with rising crude oil prices, has received reports of relief from the United States. Despite US sanctions, India has approved the purchase of crude oil from Iran. This rebate will continue till the first week of May next year and this will help the government in dealing with crude oil pressure till its tenure. The current term of the Modi government is ending in May 2019. Due to this exemption, India will be able to export grains, pharma products and auto parts to Iran.

General elections may take place by mid-May next year. In such a way, this relief from the US will provide great relief to the government on the crude oil front. In the past few weeks, the central government has faced pressure due to the rising prices of petrol and diesel. For this reason, the government decided to cut the price of petrol and diesel by 2.5 rupees.

After this, many BJP-ruled states also tried to bring the benefits of consumers by cutting VAT of Rs. 2.5. The Union Government took this decision just before the announcement of the dates of 4 states assembly elections. The impact of the rise in fuel prices has also been seen as a weak rupee. With this, the current account deficit has increased, which is the difference between exports and imports.

Payment will also get relief from the rupee
However, oil prices have declined in the past few days and the government expects further improvement in the situation due to the attractive conditions of payment on behalf of Iran. It is worth mentioning that in our report of September 7, according to Times of India that India and Iran are working on Rupee based payments. This payment system will be operated through UCO Bank of India and Pasargad Bank of Iran.