New Delhi: Indian exports to Iraq, which were on the rise in the last five years,
are likely to be severely hit due to the war.
"Exports to Iraq surged by 151 per cent to $ 206.13 million in 2001-02. During the
first three months of 2002-03, exports amounted to $ 170.36 million," official
sources said, pointing to the rising trend in trade with the country.
India mainly exports tea, machinery, plastic and linoleum products, electronic
goods, fine chemicals, and drugs and pharma products to Iraq.
The exports to the Gulf country were rising since 1998-99 when India exported goods
worth $ 35.39 million. It rose to $ 49.38 million in 1999-2000 and then to $ 82.58
million in 2000-01.
The balance of trade between the two countries stood at $ 170.34 million in favour
of India till 2001-02.
Official sources said apart from exports, funds flowing from Iraq as per the
Deferred Payment Agreement for project exports, are also to be affected.
Iraq was the single-largest market for India's project exports till 1982 with a
total exposure of Rs 2,500 crore by Indian companies, which was insured by Export
Credit Guarantee Corporation (ECGC).
Due to the war with Iran, the forex reserves of Iraq depleted and it signed a
Deferred Payment Agreement with India covering 55 projects.
PTI
