New Delhi, Sept 25, IRNA -- Relations between India and Iran are growing especially in the economic areas and the expansion of these relations are in the interest of both countries, said an Iranian expert Wednesday.

The comments were those of A. Mansoorian, managing director of Sina Chemicals Industries Co. in Iran, in an interview with IRNA on the sidelines of the International Exhibition and Conference on Chemicals dubbed `India Chem 2002'.

India and Iran are converging in many areas and enjoy many cultural and historical commonalties. Therefore, there is a lot of potential for expansion of relations between the two countries, especially in the economic field, which should not be missed, he added.

Referring to the fact that trade and commerce between the two countries has not expanded to the extent expected, he said that nonetheless India's economy is expanding and has opened opportunities for an increase in Iranian exports to Indian markets.

However, he said high tariffs imposed in Indian has prevented Iranian exporters from increasing the bulk of their business in India.

Mansoorian believes India and Iran can expand their trade relations by utilizing the privileges which are granted to both countries under the rules of the World Trade Organization (WTO).

"Iran is well placed as far as chemical resources are concerned and its exports in this field are continuously growing; therefore, India, which is geographically very close to Iran, can meet its needs in this area from Iran," he said.

Referring to the importance of and Iranian participation in the `India Chem 2002' exhibition in New Delhi, Mansoorian said the specialized exhibition has gathered many experts all over the world and has given Indian and Iranian companies the opportunity to get acquainted with each other's capabilities and potentials and to find ways to further expand trade between them.

The Iranian expert further said he feels India and Iran, as two developing countries, should accommodate each other more by giving special concessions to encourage each other's economic development. And, when necessary, he said they should pass special laws to remove existing impediments to increase trade and thereby increase their importance in the region.

Referring to the start of direct air flights by Mahan Air from Tehran and New Delhi and vice-versa, he said this development will result in great economic benefits for both sides and will also pave the way for increased interaction between the peoples of the two countries.

`India Chem 2002,' the second specialized international exhibition on chemicals, petrochemicals and pharmaceuticals in India, started last Wednesday at Pragati Maidan, the permanent site for exhibitions in New Delhi.

About 223 companies from 13 countries including Iran, China, France, Italy, Japan, Spain, Denmark are participating in the exhibition.

In 1999, India imported chemicals worth 8 million dollars from Iran.

Iranian exports of ethylene, the main chemical exported to India, amounts to 40,000 tons, worth 25 million dollars, per annum.