• Dr.Praneet Rangi Randhawa

The development of any economy is dependent on the amount of investment taking place in the economy. Every country maintains its economic activity by ensuring an adequate level of domestic investment. However that alone is not sufficient and inevitably foreign investment fills the gap between the desired and actual level of investment. In this globalised world the flow of funds across borders has become very fluid and every country tries to project itself as an attractive investment destination. India and Iran are not an exception. Both the countries have looked towards foreign investment as an attractive option. However for Iran, the things became a little difficult when the UN, the European Union and the United States imposed sanctions on it. It cut off Iran from the rest of the world in carrying out trade and investment activities and the only countries who did not fully abide by these sanctions were India, China and Russia. Things have however taken a turn for good for Iran as it agrees to the Comprehensive Joint Plan of Action(CJPOA). This has a major economic implication for Iran and being an active trading partner of Iran for India also. Suddenly the economic dynamics for both the countries change and this agreement would result in a realignment of the bilateral relations of India and Iran on the economic front. The current paper tries to analyse the impact of this development on the economic relations between the two countries and tries to identify the potential for investment for India in Iran. The objective is to identify the competitive advantage that India enjoys in investing in Iran. The paper adopts a descriptive research approach and is based on secondary data. The main sources of data are the government publications, newspapers and magazines. The speeches and opinions expressed by experts and politicians are also a source of information.

Investment, India, Iran, Competitive advantage

" AN ANALYSIS OF FOREIGN DIRECT INVESTMENT POTENTIAL FOR INDIA IN IRAN", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.3, Issue 4, page no.313-318, April-2016, Available :http://www.jetir.org/papers/JETIR1701C99.pdf

" AN ANALYSIS OF FOREIGN DIRECT INVESTMENT POTENTIAL FOR INDIA IN IRAN", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.3, Issue 4, page no. pp313-318, April-2016, Available at : http://www.jetir.org/papers/JETIR1701C99.pdf