Clinton pushes India on Iran oil imports

7 May 2012 Last updated at 20:17 ET Help

The US Secretary of State Hillary Clinton has urged India to cut its reliance on Iranian oil as part of sanctions designed to force Tehran to curb development of its nuclear programme.

Washington is currently deciding whether to grant India an exemption from moves that would penalise financial institutions in countries that continue to buy oil from Iran.

India, which last year imported 12% of its oil from Iran, says it has reduced its reliance "substantially".

The US has also been pushing India to continue steps to open up its retail market.

The BBC's Shilpa Kannan reports.

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