ASSOCHAM study says tariff barriers may hit ASEAN business prospects
26 Sep '05
4 min read
The nine priority sectors identified by the ASSOCHAM Study where integration would help closer cooperation between the India-ASEAN Countries include Medical Research & Pharmaceuticals, Tourism, Infrastructure, Energy, Food Security, ICT services, Entertainment and Educational Services. India enjoy strong business complimentarities and trade advantage in the above sectors.
Singapore is one country which has ratioanlised its duty structure as per the expectations of India after the two countries have signed comprehensive economic and trade agreement in the recent past clearly identifying the areas and their duty structure, said Mr. Sanghi.
ASSOCHAM study points out that India's trade with Singapore as on now is close to about $ 8 billion which will have potential to more than double because of complimentarities that exists between Singapore and India in areas of services, tourism, information and communications technology, telecom and food & food related products. While India's trade with ASEAN has increased to $ 13 billion and projected to go up to $ 30 billion dollar by 2007-08, the trade balance remains in favour of ASEAN.
India's trade deficit with the region has come down from $2.3 billion in 1999-2000 to $1.3 billion in 2003-04 but there is tremendous scope to reduce it further if trade barriers are removed.
The study has identified the Philippines as a major problem with import duties on textiles, watches, clocks and electric equipment fixed at 50%. The difficulties faced by Indian exporters should be resolved while negotiating FTA with ASEAN, felt ASSOCHAM President, Mr. Sanghi.
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