The Hindu Business Line : Chambers give thumbs up to Indo-ASEAN trade pact

The gainers
Refined petroleum products, organic chemicals, pharmaceuticals, gems & jewellery, and metal scraps, which are among India’s major exports to ASEAN, are likely to be the major gainers from the FTA

Our Bureau

New Delhi, Aug. 14s Industry chambers have welcomed the ratification of the free trade agreement (FTA) signed between India and the 10-nation ASEAN.

The chambers were optimistic that the FTA would give Indian companies a greater access to the trillion-dollar ASEAN economy.

Mr Chandrajit Banerjee, Director-General, Confederation of Indian Industry, said, “Currently the bilateral trade between India and ASEAN is way below its true potential. We are confident that the elimination of tariffs on nearly 80 per cent of the traded goods would go a long way in boosting bilateral trade ties between the two regions.”

Refined petroleum products, organic chemicals, pharmaceuticals, gems & jewellery, and metal scraps, which are among India’s major exports to ASEAN, are likely to be the major gainers from the FTA.

The Federation of Indian Chambers of Commerce and Industry expects the FTA with ASEAN to open up new market opportunities for Indian businesses. With a strategic approach exports from India could occupy a much higher share in ASEAN total imports. Currently India’s share is a modest 2.5 per cent.

The FICCI Secretary-General, Dr Amit Mitra, added, “We have to remember that the agreement is not an agreement in goods alone. It would eventually cover services and investment too. FICCI, therefore, expects that Indian professionals and service providers would be able to have greater market access in the ASEAN region once FTA in services is in force.”

PHD Chamber’s Secretary-General, Mr Krishan Kalra, said, “Such agreements assume significance not only because of their potential for trade creation but also on account of their ability to encourage cross-country investments. There is need to have a road map to ensure that such agreements also lead to stimulating economic and industrial activity in the country.”

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