Asean,East Asia summits offer India growth avenues in APAC

Leaders of 16 Asia Pacific countries are meeting in Thailand later this week for the Asean and East Asia summits,which India can leverage to explore new markets for its exports facing slump in the US and Europe.

Leaders of 16 Asia Pacific countries are meeting in Thailand later this week for the Asean and East Asia summits,which India can leverage to explore new markets for its exports facing slump in the US and Europe.

The 600-million people market in 10 south east Asian nations offers a perfect fit for enhancing the India-ASEAN trade,which at present is estimated at about USD 45 billion,less than 10 per cent of Indias global merchandise engagement.

Briefing reporters about Prime Minister Manmohan Singhs schedule at the summits on October 24-25,Secretary (East) in the Ministry of External Affairs N Ravi said the signing of the Free Trade Agreement (FTA) in August between India and the south east Asian nations was a testimony to Indias growing engagement in the region.

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Presently the two sides are engaged in negotiating an FTA in services, Ravi said.

Duties on over 4,000 items of trade between India and Association of South East Asian Nations (ASEAN) would be removed or substantially reduced gradually beginning January 2010 as a result of FTA in goods.

As the services have an overwhelming contribution of about 55 per cent to the Indian economy,the country has an immense interest pursuing a liberal trade in this area.

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