Tronic Reply
"I agree with you that sanctions will hurt India, but, India is not an export based economy, so loosing out markets in Europe and America is not as damaging as it may be to China."
This shall not prove a relative comparison between India and the PRC. India exported $298B worth of goods in 2011. 12% ($35B) of that went to America. Add your European markets to that picture, factor mitigating circumstance and determine the risk.
"The article overlooks the fact that Indian imports of Iranian oil had been increasing, not decreasing, up until 2010..."
But not 2011 nor the remainder of this year. What the immediate future holds is unclear, I'm sure you'd agree.
"...It downplays the fact that a recent Indian trade delegation signed a bilateral agreement aiming to increase trade to $25 billion within the next 4 years..."
Do you foresee this dispute a continuing issue four years from now? I don't. If so, how might your increasing exports to America, now at $35B per year, be affected? Is that a net gain?
"...It totally leaves out the fact that recently the Indian government has amended the Indian Income Tax Act, adding a clause which states, "to provide for exemption in respect of any income of a foreign company received in India in Indian currency on account of sale of crude oil to any person in India...,", providing, "receipt of money is the only activity carried out by the foreign company in India". A clause obviously aimed at making transactions with Iran tax free..."
No. A law obviously aimed at making energy transactions, from wherever they may occur, tax-free.
"...It also leaves out the fact that India's Oil and Natural Gas Corporation along with the Hinduja Group have investments in Iran of almost $8 billion for a stake in Iran's South Pars gas fields."
Will that gas be piped through the "Peace Pipeline"?
"I agree with you that sanctions will hurt India, but, India is not an export based economy, so loosing out markets in Europe and America is not as damaging as it may be to China."
This shall not prove a relative comparison between India and the PRC. India exported $298B worth of goods in 2011. 12% ($35B) of that went to America. Add your European markets to that picture, factor mitigating circumstance and determine the risk.
"The article overlooks the fact that Indian imports of Iranian oil had been increasing, not decreasing, up until 2010..."
But not 2011 nor the remainder of this year. What the immediate future holds is unclear, I'm sure you'd agree.
"...It downplays the fact that a recent Indian trade delegation signed a bilateral agreement aiming to increase trade to $25 billion within the next 4 years..."
Do you foresee this dispute a continuing issue four years from now? I don't. If so, how might your increasing exports to America, now at $35B per year, be affected? Is that a net gain?
"...It totally leaves out the fact that recently the Indian government has amended the Indian Income Tax Act, adding a clause which states, "to provide for exemption in respect of any income of a foreign company received in India in Indian currency on account of sale of crude oil to any person in India...,", providing, "receipt of money is the only activity carried out by the foreign company in India". A clause obviously aimed at making transactions with Iran tax free..."
No. A law obviously aimed at making energy transactions, from wherever they may occur, tax-free.
"...It also leaves out the fact that India's Oil and Natural Gas Corporation along with the Hinduja Group have investments in Iran of almost $8 billion for a stake in Iran's South Pars gas fields."
Will that gas be piped through the "Peace Pipeline"?
Comment