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Asean-India trade volume low despite FTA: AIBC

KUALA LUMPUR: Asean and India can deepen and broaden ties in the healthcare, digital economy, logistics and small and medium enterprises space.

Asean-India Business Council co-chair Datuk Ramesh Kodammal said the trade volume remains low compared to other Asean trade partners.

"This could be due to the lack of awareness of the opportunitied and benefits under the three core agreements," he said in a media briefing.

He was referring to the Trade in Goods Agreement, Trade in Services Agreement and Investment Agreement.

Despite substantial elimination of import duties the trade volume remains low.

Asean-India trade averaged 2.7 per cent of Asean global trade between 2012 and 2015.

"It is a far cry from the target trade value of US$100 billion which was set by the leaders of both economic regions."

He said the private sector had yet to fully tap the economic potential since the FTA was implemented in 2010.

The AIBC is organising the ASEAN-India Business Leadership Conclave 2016 to highlight opportunities in healthcare, digital economy, logistics and small and SMEs.

With its "Make in India" initiative in place, India offers investment opportunities to the Asean members.

The AIBC was reactivated in 2014.

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