The economic partnership between India and the Association of Southeast Asian Nations (ASEAN) has continued to strengthen since the economic relationship began in 1992 and with the ASEAN-India Free Trade Agreement (AIFTA) coming into effect in 2009.
The bloc has presented several opportunities for Indian manufacturers and exporters seeking long-term commitment. Total trade between India and ASEAN was valued at US$86 billion in 2020, a reduction from US$97 billion in 2018-19 due to the pandemic. However, this was an increase from the 2017 total trade value of US$59 billion, indicating an upward trajectory only arrested by the pandemic.
Furthermore, according to India’s Commerce and Industry minister, India-ASEAN trade has the potential to reach US$300 billion by 2025.
ASEAN is already the world’s third most populous economy and is projected to be the fourth-largest single market by 2030, with a GDP of US$7 trillion. Furthermore, domestic consumption is expected to reach US$4 trillion and the population too will rise to 723 million from 648 million currently.
Indian exports largely mirror those of ASEAN states, such as rice, electrical equipment, and clothing and accessories. However, there are still sectors where Indian exporters can potentially exploit market needs – wheat exports, the digital economy, and healthcare.
Source: ASEAN Briefing
Author: Ayman Falak Medina
Original published date: 2 July, 2021
Read full article here https://www.aseanbriefing.com/news/opportunities-for-indian-manufacturers-in-asean/
July 19, 2021
