No.PR-90
November 11, 2019
New Delhi
India-ASEAN bilateral trade to reach USD 300 billion by 2025: PHD Chamber
India’s bilateral trade with the ASEAN economies is expected to double by 2025 to the level of USD 300 billion from the current level of USD 142 billion (2018), said a study conducted by PHD Research Bureau, PHD Chamber of Commerce and Industry, released here today during the Inaugural Session of India – ASEAN Business Summit: Today, Tomorrow, Together organized by PHD Chamber of Commerce and Industry at PHD House, New Delhi.
India’s merchandize exports to ASEAN economies are in the tune of around USD 38 billion, imports at USD 59 billion and total trade at USD 97 billion in 2018-19, said the research study.
In the services segment, India’s exports to ASEAN economies stand at USD 24 billion, imports at USD 21 billion and total trade at USD 45 billion in the recent times.
Exploring synergies between manufacturing and services trade, facilitation of mobility of professionals and business visits between India and ASEAN, encouraging greater regulatory cooperation and exchange of best international practices, among others will strengthen the bilateral cooperation between India and ASEAN economies, said Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry while releasing the Study.
The continuous reforms undertaken by the Government of India are significantly encouraging to promote trade and economic cooperation between India and ASEAN economies, said Dr D K Aggarwal.
There is immense potential for increasing India’s exports to ASEAN economies considering the inherent advantages of the Indian industry in various product categories, said Dr D K Aggarwal.
India’s trade relations with ASEAN have witnessed a shift during the pre and post ASEAN–India Free Trade Agreement (AIFTA).
During pre-AIFTA, India’s merchandise exports to ASEAN economies have increased from USD 3 billion in 2001 to USD 18 billion in 2009 with a CAGR of around 22%. While, during post-AIFTA, India’s merchandise exports to ASEAN economies increased from USD 23 billion in 2010 to USD 36 billion in 2018 with a CAGR of around 5%, said the study.
During pre-AIFTA, India’s merchandise imports from ASEAN economies have increased from USD 4 billion in 2001 to USD 24 billion in 2009 with a CAGR of around 22%. While, during post-AIFTA India’s merchandise imports from ASEAN economies increased from USD 30 billion in 2010 to USD 57 billion in 2018 with a CAGR of around 8%, said the study.
During pre-AIFTA, India’s total merchandise trade with ASEAN economies has increased from USD 8 billion in 2001 to USD 42 billion in 2009 with a CAGR of around 20%. While, during post-AIFTA, India’s total merchandise trade with ASEAN economies has increased from USD 53 billion in 2010 to USD 93 billion in 2018 with a CAGR of around 7%, said the study.
It has been observed that the concentration of India’s exports items to ASEAN economies is very high in the top 20 commodities with a share of around 85% in 2009 and 2018, said the study.
Going ahead, there is scope for further diversification of India’s exports basket to ASEAN economies. Therefore, facilitation to exporters to diversify the composition of India’s export basket with enhanced knowledge of ASEAN markets will be crucial to strengthen India-ASEAN trade trajectory, said the study.
According to the Study, some of the measures for boosting India-ASEAN dynamic trade and investment relations include:
• Enhancing the facilitation to exporters to diversify the composition of export basket with enhanced knowledge of ASEAN markets regarding demand for goods across borders.
• Significantly increase services trade with ASEAN economies as these economies are becoming increasingly services-oriented.
• Undertaking continuous review of the ASEAN-India trade in Goods agreement and monitor market access issues relevant to both tariff and non-tariff measures in order to promote and increase the FTA utilization.
• Harmonizing and simplifying the customs procedures, thereby reducing the time and cost involved in transit.
• Promote greater private sector engagement and encourage business-to business relations in order to strengthen business networks and opportunities
• Promote and facilitate FDI into India and ASEAN countries through cooperation among investment promotion agencies, linkages between investors and local entrepreneurs.
• Support greater financial inclusion towards improving access to financial services especially to Micro, Small & Medium Enterprises (MSMEs) to promote stable and sustainable growth.
Going ahead, there are huge trade and investment opportunities for enhancing India-ASEAN cooperation in sectors such as infrastructure and Fintech, culture and tourism, IT/ITES and e-commerce, education and skill development, healthcare and pharmaceuticals and agriculture and food processing, among others.
While releasing the study, the eminent dignitaries including Dr. Jitendra Singh, Hon’ble Minister of State (IC) for Development of North Eastern Region and Minister of State for PM’s Office, Personnel, Public Grievances and Pensions, Department of Atomic Energy and Department of Space, Government of India, H.E Mr. Chutintorn Gongsakdi, Ambassador, Royal Thai Embassy Chair of ASEAN Region, Mr. Dato Ramesh Kodammal, Co-Chair, ASEAN India Business Council (AIBC), Dr. D K Aggarwal, President, PHD Chamber of Commerce and Industry, Shri Sanjay Aggarwal, Senior Vice President, PHD Chamber of Commerce and Industry, Shri Ajay Poddar, Chair, International Affairs Committee for ASEAN, East Asia & Oceania, PHD Chamber of Commerce and Industry, Ambassador K.V Rajan, Convener Ambassador’s Economic Forum, PHD Chamber of Commerce and Industry, Dr S P Sharma, Chief Economist, PHD Chamber and Mr. Vivek Seigell, Principal Director, PHD Chamber of Commerce and Industry graced the occasion.
The full report is enclosed.
Release of Report on India’s trade and investment opportunities with ASEAN economies by the eminent dignitaries during India-ASEAN Business Summit
PR
From Left to right: Mr. Neelab Dalmia, Co-Chair International Affairs Committee for ASEAN, East Asia and Oceania, PHD Chamber, Dr S P Sharma, Chief Economist, PHD Chamber, Mr. Vivek Seigell, Principal Director, PHD Chamber, Mr. Dato Ramesh Kodammal, Co-Chair, ASEAN India Business Council (AIBC), H.E Mr. Chutintorn Gongsakdi, Ambassador, Royal Thai Embassy Chair of ASEAN Region, Dr. D K Aggarwal, President, PHD Chamber, Dr. Jitendra Singh, Hon’ble Minister of State (IC) for Development of North Eastern Region and Minister of State for PM’s Office, Personnel, Public Grievances and Pensions, Department of Atomic Energy and Department of Space, Government of India, Shri Sanjay Aggarwal, Senior Vice President, PHD Chamber, Shri Ajay Poddar, Chair, International Affairs Committee for ASEAN, East Asia & Oceania, PHD Chamber and Ambassador K.V Rajan, Convener Ambassador’s Economic Forum, PHD Chamber.
End.
Media Division
PHD Chamber of Commerce and Industry