Yesterday the Indo- Asean FTA was signed.
Let us see how bilateral trade will fare ! It is bound to shoot up.
We really feel that Kerala’s fears will be unfounded, as India gets access to ASEAN
markets. India is major in IT, BT, NT and other solutions. India will
capture the ASEAN industry and bilateral trade will be to India’s advantage !
Even though ASEAN nations have more yield and much more productivity, India
will compete in all fields. India will turn out to be the third largest economy in
the planet, according to a Goldman Sachs report, based on GDP development !
The ten member nations of ASEAN – Malaysia, Indonesia, Singapore,
Philippines, Brunei, Thailand, Vietnam, Cambodia, Laos, Myanmar – exported
goods worth $ 864 b and imported $ 774 billion. India gets access to a a single
trillion dollar ASEAN economy !
The pact has been welcomed by sector lobbies. The CII welcomed the move,
saying it will give India access to ASEAN markets. ASSOCHAM said that the
bilateral trade will go to a whopping $ 60 billion in the near future.
FICCI mentioned that the pact will open up new market place possibilities for Indian
enterprise with zero tariffs on 80% of ASEAN imports within 4 years.
Indian PM Dr Singh had known as a group of ministers to allay domestic fears
before signing the pact. 489 things were kept out of the ambit of the pact.
The positiive stance of Jupiter, in India’s Seventh Property, is responsible
for this move. India’s exports ( and imports ) are bound to rise !
According to a Kerala Report, a new challenge has propped up. India has to
improve her competitive efficiency to meet this new challenge. It is to be
noted that exports to ASEAN are only $ 14 b, whereas imports are $ 20 b. A
deficit of $ six b. Challenges are much more achievements could be less !
Cash crops, rice, fish, crude oil, electronics, auto accessories and so on are all
ASEAN exports to India. India exports wheat, oilseeds, pharmaceuticals,
organic chemicals, ornaments and refined oil. China has tenfold India’s grab
of the ASEAN market. S Korea, New Zealand, Japan and Australia have signed
pacts with ASEAN. Even even though it is a totally free trade pact, India faces a
formidable challenge !
In 07-08, India had a deficit of $ 14.56 billion. This is 15% of Indian total
deficit. Indian trade deficit is rising !