The Hindu Business Line : `Focus Asean' to target individual exporters

TAKING the inter-regional integration efforts (for greater trade and commerce) to the individual exporters' level is the main plank of the newly launched `Focus Asean (Association of South Asian Nations) plus 2 (Australia and New Zealand)' programme of the Ministry of Commerce, Government of India.

The new programme has been chalked out along the lines of programmes such as `Focus-LAC' and `Focus-Africa', which have proved successful.

India's traditional export basket to Asean consists of items such as gems and jewellery, grains, chemicals, electronic goods and iron & steel, with demand not skewed towards any particular product group. Trade events organised in this region by Engineering Procurement and Construction companies (EPCs) are eligible for financial support as grant from the government under the Market Development Assistance (MDA) Scheme.

India's exports to Asean countries touched $4.62 billion during 2002-03, up from the $1.63 billion in 1998-99. Currently, Asean is a predominant trading partner of India, roughly accounting for 9 per cent of the country's total trade. Two-way trade is now put at $9.8 million, with a trade deficit of $0.5 billion.

The important markets for India are Singapore (export from India was $1.4 billion in 2002-03), Indonesia ($0.8 billion), Malaysia ($0.75 billion), Thailand ($0.7 billion) and Philippines ($0.5 billion).

Speaking at a recent workshop here on `Doing business with South East Asia', organised jointly by the Bengal National Chamber of Commerce & Industry and Capexil, in association with the Indian Institute of Foreign Trade (IIFT), Mr Samir Ghosh, Senior Vice-Chairman of Capexil, said there was an urgent need to enhance the close economic co-operation between India and Asean nations by speedily working towards an India-Asean Free Trade Agreement (FTA).

Asean, according to Mr Ghosh, can emerge as one of the most important destinations for Indian exports, touching $30 billion by 2008, as per a recent study.

The ADB, according to Mr Ghosh, has forecast an economic growth of 5.4 per cent by 2005 for the Asean region. While high growth is predicted for Vietnam and Thailand, for the rest, it is likely to hover in the band of 4.5-5.5 per cent.

Mr Ghosh told Business Line that some of the Asean countries have made tremendous progress in technological and industrial development, particularly in sectors such as ceramics, glass and glassware, plywood and wood products and rubber. The major Capexil products for the Asean region are minerals, stone, tyres, glassware, paper, electrodes, books and rubber products.

Asked on the council's promotional programmes in the region, Mr Ghosh said these would include participation in trade fairs in Vietnam and Australia (Designbuild in Melbourne, Australia), besides buyer-seller meets in India and Asean countries.