India Expects Trade With ASEAN To Reach $100 Billion

The government expects the value of the bilateral trade between India and ASEAN countries to reach $100 billion by 2015.

While speaking at the 2nd India – CLMV Business Conclave, Minister of State for Commerce & Industry Nirmala Sitharaman said: “In 2009, the Free Trade Agreement (FTA) on goods had been signed (with ASEAN) and because of that and through that trade between ASEAN and India have been reaching about USD 80 billion level. We hope by 2015 it will touch $100 billion and get doubled by 2022. So there is lot of work, there is a lot of scope.”

The event was organised in order to discuss ways to boost trade with Cambodia, Laos, Myanmar and Vietnam (CLMV). “India’s Look East Policy has become very sharp focussed and that there is a need for greater and accelerated engagement across the globe with East Asia,” the minister further added.

Pointing out the key areas where mutual investments could be made, Sitharaman asserted that sectors such as skill development, agricultural products, manufacturing, project exports and energy had potential for the trade to grow.

“We are very keen to open up the north-east part of India; open up the economy, improve on its connectivity with the rest of the East and therefore look at India’s North-East as threshold to our Act East Policy. Commerce, Culture and Connectivity” are the three pillars of India’s engagement with the CLMV countries,” emphasised Sitharaman.

Currently, the total trade value between India and ASEAN stands at $80 billion. However, CLMV trade is still low and is focused on a few specific products. The Union minister said that the government is focused on improving its trade with the four countries.

“At present, 70-80% of India-CLMV trade is centred on only a few products. I think there is a scope to expand the basket and bring in more commodities and manufactured goods into it. The government has accorded high priority to economic engagements with the four countries, and is working towards establishing seamless physical connectivity with the region,” averred Niramala Sitharaman.

The trade between India and CLMV countries is pegged at $13 billion in 2013-14, primarily with Vietnam.