Dubai: In a bid to boost their bilateral economic and trade ties, India and Iran today (Dec 13, 2003) signed a memorandum of understanding (MoU) to enhance their cooperation in various sectors including petroleum, railways, power and communications.

The MoU was signed by External Affairs Minister Yashwant Sinha and his Iranian counterpart Kamal Kharrazzi in Tehran, at the 13th Joint Commission meeting, during which the two sides reviewed bilateral relations and stressed the need for sharper thrust to realise the full potential in two-way trade.

The MoU also covered shipping, textiles, small and medium enterprises, cement, pharmaceuticals and biotechnology, and resolved to work together to enhance the pace of transfer of technology, investment and joint ventures, officials said.

Senior Indian officials were in Tehran two days prior to the Minister's visit to fine tune and finalise the terms of the MoU.

The automobile sector was particularly in focus, as India was keen to set up joint ventures in Iran. Tatas and Mahindras had made a strong pitch at an India Fair in Tehran in this regard early this month.

Addressing the joint commission meeting, Sinha mooted the idea of a common market with Iran and Pakistan in the context of widening cooperation with Islamabad and Tehran in recent months.

PTI