India & ASEAN Trade Relations
The partnership between India and Association of South East Asian Nations (ASEAN) countries is a decade old. The ASEAN countries comprise of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The best part being, trade between both India and ASEAN has been developing at a swift pace.
India reportedly is the sectoral dialogue partner of ASEAN since 1992. However, at the fifth ASEAN summit in Bangkok in 1995, India assumed the status of a full dialogue partner on popular demand. In fact India and ASEAN have been organizing summit level meetings on an annual basis since 2002.
In additions, Free Trade Agreement (FTA) was inked by India and ASEAN countries in August 2009 in Bangkok.
The Union Minister of Commerce and Industry, Mr Anand Sharma, signed the ASEAN-India Free Trade Agreement in Goods with ASEAN economic Ministers for common economic gains.
As per ASEAN-INDIA FTA, the ASEAN member countries and India will do away with at least 80 percent of import tariffs between 2013 and 2016, commencing from January 1, 2010.
Also, tariffs on sensitive products will be brought down by 5 per cent in 2016, while tariffs will remain as it is for around 489 items of sensitive products.
ASEAN is India’s 4th largest trading partner after the EU, US and China. Indo-ASEAN trade relations have been scaling up at a compounded annual growth rate of 27 percent since 2000. In 2007-08, the trade stood at US$38.37 billion. In the last financial year, it was over US$ 40 billion. By 2010 India and ASEAN plan to achieve an ambitious target of US$ 50 billion.
India and Singapore enjoy good trade relations. Besides, the country is considered to be a getaway to ASEAN and china. The signing of the Comprehensive Economic Cooperation Agreement in 2005 has provided a fresh impetus to trade relations between the two nations. The Singapore companies to a greater extent have started engaging themselves in infrastructure and real estate projects in India and even have been looking forward to associate with logistics and communication sector, healthcare, education and training, retail and the automotive sectors.
They are also embarking onto developmental and planning projects like roads, ports, airports, power and telecom sector.
India’s major exports to Singapore
Crudes, Parts & Accessories Of Automatic Data Processing Machines, Automatic Data Processing Input And Output Units, Motor Spirit Refined Premium Leaded, Styrene, Automatic Data Processing Storage Units, Other Monolithic Integrated Circuits, P-Xylene, Monolithic Digital Integrated Circuits, Radio Transmission Apparatus with Reception Apparatus.
India’s major imports from Singapore
Non-Industrial Diamonds Worked, Topped Crudes, Motor Spirit Refined Premium Leaded, Aluminium Unwrought, Benzene, Articles Of Jewellery Of Other Precious Metal Whether Or not Plated Or Clad With Precious Metal, Other Medicaments Packed For Retail Sale, Parts Of Boring Or Sinking Machinery, Static Converters, Other Medical Surgical Dental Or Veterinary Instruments & Appliances
India-Malaysia trade relations have witnessed exponential growth since 1991. Malaysia’s largest trading partner is India, while Malaysia is India’s second largest trading partner in the Association of South East Asian Nations (ASEAN).
India’s major exports to Malaysia: Meat and meat preparations, sugar, rice (other than basmati), wheat, fresh vegetables and fruits, cotton yarn, RMG cotton and accessories, primary and semi-finished iron, made-ups, fabrics, machinery and instruments, electronic goods and metal manufactures.
India’s major Imports from Malaysia: Crude Petroleum, Palm Oil, Electronic & Electrical products, Chemicals & Chemical products and Petroleum products.
The bilateral trade between India and Myanmar is likely to clock $1 billion in 2009-10, up from $951 million in 2008-09.
India’s imports from Myanmar: While teak, timber, maize and pulses
India’s major exports to Myanmar: Steel, cement, fertiliser and pharmaceuticals
India and Indonesia are considered as Asia’s largest democracies. However, it is only after a gap of five years both the countries came together for trade relations. The last time both the countries entered into a trade relationship was in 1950s. Right through 2009, both countries got engaged in putting up numerous seminars, exhibitions, festivals and top visits to build bilateral relations.
In 2008-09 India exported goods worth US$ 1.82 billion to Indonesia.
India’s major exports to Indonesia – organic chemicals, mineral fuels and ships and boats.
India and Indonesia have entered into a memorandum of understanding (MoU) for collaboration in the field of agriculture and allied sectors.
Mutual trade between the two countries clocked US$4.11 billion in 2007-08 as opposed to US$ 3.18 billion in 2006-07. In between April-December 2008-09 India exported goods worth US$ 1.44 billion to Thailand. The sectors in India that have seen Thai investment in the areas of hotel & tourism, food processing, trading and chemicals.
India- Thailand is targeting US$ 10 billion bilateral trade in 2010.
The bilateral trade between the two countries remains “modest”, with the trade balance being in India’s favour. Bilateral trade clocked US$ 1.77 billion in 2007-08 from US$ 1.14 billion in 2006-07. From April-December 2008-09, India’s exports to Vietnam was worth almost US$ 1.13 billion.
India’s major imports from Vietnam: Pepper, rubber, computer hardware and electronic products, cinnamon bark and spices, and garments and textile products.
The key areas where Indian exports could make an impact in the Vietnamese market include information technology (IT) and IT training, agro and food processing, railways, energy and alternate energy, veterinary manufacturing plant, tea processing machinery, textile machinery, and power transmission and generation.
The trade between India and Philippines was worth US$ 823.69 million in 2007-08. During the period between April-December 2008-09, India exported goods worth US$574.22 million to Philippines. India’ major exports to Philippines: Frozen buffalo meat; rubber and articles thereof; oil seeds and olea etc.; vehicles; iron and steel; residues and waste from food industries; tobacco; pharmaceutical products.
India’s major imports from Philippines: Electrical and electronic machinery and equipment; iron and steel; machinery; vehicles; auto components, newsprint paper and paperboard; animal or vegetable fats and oils; organic chemicals.
In 2007-08, the trade between the two countries stood at US$56.32 billion in 2007-08.
IN April-December 2008-09, India exported goods worth US$ 35.94 million.
India’s major exports to Cambodia – pharmaceuticals, coffee, tea, spices and cotton.