The visit last week of Iranian Foreign Minister Dr Ali Akbar Velayati, one of the longest-serving foreign ministers in the world, was intended precisely to focus on improving political and economics ties between the two countries. Bilateral trade, Velayati pointed out, has risen to over $700 million in the last few years. A major component of this trade is oil exports from Iran—about 3 million tonnes per annum—which has tilted the balance of trade heavily in favour of Iran. However, one impediment in furthering bilateral ties is the financial crunch which both countries face. While finances from multilateral institutions like the World Bank and the IMF have been denied to Iran under pressure from the US, India has its own problems. Consequently, concrete action is still to be taken on several projects.