Iran and India have plans to increase the annual bilateral trade to $25 billion by 2015, according to the statement by Arvind Mehta, joint secretary in the Indian Commerce Ministry.

Mehta is leading the trade delegation to Iran to explore commercial opportunities between the two nations. It is notable that the development happened amidst attempts by the U.S. and Europe to push for sanctions against Iran.

The U.S. and other Western nations have alleged that Iran is in the process of building a nuclear weapon, a claim denied by Tehran.

The U.S. and Europe have tightened economic sanctions against Iran. Iran has repeatedly argued such sanctions will not cripple the country's economy nor disrupt its nuclear program.

In response, Iran has threatened to withhold oil deliveries and block the Strait of Hormuz, through which a fifth of the world's oil flows.

Iran, which is the second largest oil supplier for India after Saudi Arabia, provides for about 12 percent of the crude needs of New Delhi.

Meanwhile, head of the Federation of Indian Export Organizations Rafeeq Ahmed has stated that India has come to an agreement with Iran on the payment to be done for oil imports. It is decided that India will pay for 45 percent of its crude imports in rupees.