I was interested in knowing if its possible to share an ipa file generated from the project between 2 people locally without the overhead of itunes store or testflight. As in android apps we can easily share the compiled .apk file with anyone even across borders. I have gone through the following references https://stackoverflow.com/a/6413247/550177 but i am sure my question is different. Any sort of help would be appriciated
No you can't. You need to have a developer account to test it on iPhone. You may then package your app and deploy to a number of iPhones using their UDIDs.
A UDID can be found in the iTunes when you connect your phone to a Mac. You need to add this UDID to your device list and check that in your provisioning profile in Member Center. The app package(ipa) can be uploaded to dropbox and then you may hit a url from phone to install the app.
The url may link to your app in the dropbox something like this:
itms-services://?action=download-manifest&url=https://dl.dropboxusercontent.com/s/XXXXXXX/YourApp.plist