The Hindu Business Line : Exports to Asean: CII for focus on commodity groups

THE country's exports to the 10-member Association of South East Asian Nations (ASEAN) can reach $30 billion by 2007, if there is more focus on commodity groups that are of maximum importance to the regional grouping, the Confederation of Indian Industry (CII) has said.

A paper prepared by CII on `Enhancing India-ASEAN trade,' said that the potential to accelerate trade exists, but there is need to apply greater thrust to trade in focussed sectors. The paper adds that the compound annual growth rate (CAGR) required to be maintained between 2003 and 2007 to reach the $30 billion level in 2007 is 32.38 per cent.

The 10-member grouping includes Singapore, Thailand, Malaysia, Myanmar, Indonesia and the Philippines.

The paper adds that the potential sectors for investment and trade include drugs and pharmaceuticals, healthcare, engineering goods, auto components, leather, gems and jewellery. The paper adds that the services sector also has great significance.

It points to the fact that the growth in India's exports to the ASEAN region in recent years has been much higher in comparison with other important destinations.

The paper observes that India's trade with the world in 2003 stood at $114.13 billion, with the ASEAN region accounting for 8.5 per cent, which is much below the potential.

The paper also lists the issues affecting Indian businesses with the ASEAN region including the strong sway and presence of Chinese products in the region as also the information about the quality of Indian products.

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