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India-ASEAN bilateral trade to reach $300 billion by 2025

IANS

New Delhi

With India pulling out of the Regional Comprehensive Economic Partnership (RCEP), country’s existing engagement with ASEAN is back in focus with an industry study suggesting that India’s bilateral trade with the ASEAN economies would double by 2025 to $300 billion from the current level of $ 142 billion (2018).

The study conducted by PHD Research Bureau, PHD Chamber of Commerce and Industry, said that concentration of India’s exports items to ASEAN economies is very high in the top 20 commodities that presents scope for further diversification of India’s exports basket to such economies.

India’s merchandize exports to ASEAN economies are in the tune of around $38 billion, imports at $59 billion and total trade at $97 billion in 2018-19, said the study.

In the services segment, India’s exports to ASEAN economies stand at $24 billion, imports at $21 billion and total trade at $ 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, PHDCCI.

There is immense potential for increasing India’s exports to ASEAN economies considering the inherent advantages 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 had increased from $ 3 billion in 2001 to $ 18 billion in 2009 with a CAGR of around 22%. While, during post-AIFTA, India’s merchandise exports to ASEAN economies increased from $ 23 billion in 2010 to $ 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 $ 4 billion in 2001 to $ 24 billion in 2009 with a CAGR of around 22%. While, during post-AIFTA India’s merchandise imports from ASEAN economies increased from $ 30 billion in 2010 to $ 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 $ 8 billion in 2001 to $ 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 $ 53 billion in 2010 to $ 93 billion in 2018 with a CAGR of around 7%, said the study.  

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