India, Thailand need to encourage private sector investments

In the financial year 2014-15, India-ASEAN trade stood at $76.58 billion, registering average annual growth rate of 12% from $44 billion during 2009-10 The Dollar Business Bureau

India is also considering enhancing the ASEAN-India Science and Technology Development Fund from the current $1 million to $5 million in near future

Concerned over a modest pace of trade and investments growth between India and Thailand, Vice President Hamid Ansari on Thursday said the two countries need to encourage private sector investments to enhance bilateral cooperation. The Vice President who is on a three-day visit to Thailand emphasised that the two countries need to synergise their efforts in the areas of economy and business to enhance and diversify trade. “The two governments are willing to provide a predictable and comprehensive legal and taxation frame-work,” Ansari said at the Chulalongkorn University in Bangkok on Thursday. As part of the India’s ‘Look East’ policy, which has been further stimulated following Prime Minister Narendra Modi’s efforts to bring about economic growth and prosperity in the entire Asian continent, India has placed ASEAN at the core of its regional-transformation agenda. “There is a special emphasis on India-ASEAN cooperation in our domestic agenda on infrastructure, manufacturing, trade, skills, urban renewal, smart cities and Make in India programmes. Connectivity projects, cooperation in science and technology development and people-to-people exchanges are to be the springboard for regional integration and co-prosperity,” Ansari said. In the financial year 2014-15, India-ASEAN trade stood at $76.58 billion, registering an average annual growth rate of 12%, up from $44 billion during 2009-10. In terms of FDI flows, India has received $25 billion of FDI equity, while $31 billion of Indian equity has been delivered into ASEAN in the last seven years, thereby outpacing many other important regions across the world. The Vice President was hopeful about the India-ASEAN trade and investment prospects, especially in the backdrop of the ASEAN Economic Community and India’s focus on Make in India, Digital India, Skill India and Smart Cities initiatives. “We are confident that India-ASEAN commercial partnership will flourish,” he said. Over the past few years, India has taken multifaceted initiative to improve research and technological projects in the region. India is also considering enhancing the ASEAN-India Science and Technology Development Fund from the current $1 million to $5 million in near future. “We are planning to set up an ASEAN-India innovation platform to facilitate commercialisation of low cost technologies, technology transfer and collaborative R&D projects,” The Vice President pointed out. India has also committed a line of credit of $1 billion to promote connectivity projects between India and ASEAN, with focus to extend the trilateral highway to Cambodia, Lao PDR and Vietnam, and converting these transport corridors into economic corridors. As part of India’s digital connectivity initiatives, the Indian government is also exploring the setting up of information highways or i-ways between India and ASEAN. On Wednesday, the Vice President held bilateral talks with Thailand’s Prime Minister Prayut Chan-o-cha and discussed regional and economic issues of mutual interest including trade and investment, science and technology, education, and cultural exchanges. “Our talks earlier today have put in place a roadmap for further strengthening our economic cooperation and intensification of our collaborations in all areas. Your scheduled visit to India this year will further enhance this vibrant and mutually beneficial cooperation,” Ansari said.

February 05, 2016 | 04:40pm IST

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The Dollar Business Bureau - Feb 05, 2016 11:04 IST

India, Thailand need to encourage private sector investments

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