India looks beyond Vietnam in CLMV to boost trade

The Dollar Business Bureau

India has accorded high priority to economic engagements with CLMV countries, and is establishing seamless physical connectivity with the region

  The Indian government has said that it will focus on increasing bilateral ties with countries in the CLMV region, comprising Cambodia, Lao PDR, Myanmar, and Vietnam under its “Look East” policy. Speaking at the CLMV Business Conclave, India’s Commerce Minister, Nirmala Sitharaman, said that India’s trade with the CLMV countries is mostly with Vietnam and in a few items and there is a tremendous scope to deepen and widen the trade basket in India’s trade ties with this region. She said, “Currently, 70-80% of India-CLMV trade is centred around only a few products. I think there is a scope to expand the basket and bring in more commodities and manufactured goods into it.” The Commerce Minister says that Indian companies can explore increase their presence in skill development, tourism, agricultural products, manufacturing, project exports, energy to the four countries in the region. She added that the Indian government is keen to improve physical connectivity with the CLMV countries which will also help improve the economy of the states in India’s North East. She said, “Robust physical connectivity through road, rail and sea links will enable businesses on both sides to leverage the opportunities created by the India-ASEAN FTA in Goods. The FTA in Services and Investment will come into force with effect from 1st July, 2015.” An Exim Bank study says that there is an opportunity for Indian businessmen for investments and cooperation in the CLMV region in agriculture (especially in transition from traditional farming to commercial farming), financial and banking sector, information and communication technology (ICT), manufacturing, infrastructure, and SME. The study said that bilateral trade between India and CLMV countries has improved in the recent years, growing from $1.1 billion in 2004 to $11.2 billion in 2013. In the same time, the total trade of CLMV countries with the world has increased from $71 billion in 2004 to $342 billion in 2013.

This article was published on December 27, 2014.