New Delhi, Jan. 20 Trade between Indian and the Association of South-East Asian Nations (ASEAN) could touch the $100 billion (Rs 4.6 lakh crore) mark over the next five years, according a study by the Federation of Indian Chambers of Commerce and Industry (FICCI).
The study mentions that after the India-ASEAN Free Trade Agreement (FTA) comes into force this month, business could double from the targeted level of $50 billion in 2010.
The FICCI analysis shows that both India and the ASEAN region have achieved growth in exports at rates higher than the global average over the last two decades. India-ASEAN trade accounted for an average of 9 per cent of India's total trade in the last three years.
“While the share of the European Union (EU) and North America in India's exports has been constantly declining, the share of ASEAN has been on the rise. Similarly, the shares of both EU and North America in India's imports have been eroded in the last decade, but that of ASEAN recorded an increase,” the study revealed.
According to FICCI, the most important aspect of the FTA is that India's most sensitive and vulnerable sectors are protected, in terms of ‘negative' and ‘sensitive' lists. In addition, products listed in the ‘sensitive' track will be subjected to gentler tariff reduction over relatively longer time period, the Chamber pointed out.
Source : Business Line