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1. Which are important RTAs of India? Please analyse two such RTAs? Has itbenefited India?

2. Are RTAs WTO compatible? How?

What are salient features of present RTAs/ Discuss one such RTA.

• Topic no. I can be attempted by first 5 groups.

• Select 2 RTAs of all RTAs out of your choice but do not overlap

• Topic no. 2 can be attempted by group 6, 7 & 8 and topic no. 3 can be

attempted by group 9,10 and 11 (each group to discuss one RTA in the global

context each) (Pl. do not overlap). Details of the project will be discussed bythe undersigned with the class on Saturday.

Dr.(Mrs.) Vijaya KattiProfessor & Chairperson

(Graduate Studies Division)Indian Institute of Foreign Trade

"IIFT Bhawan"B-21, Qutab Institutional Area,

New Delhi - 110 016Ph : 26968313

Fax : 26867841

1. Which are important RTAs of India? Please analyse twosuch RTAs? Has it benefited India?

The following are the important RTAs for India:-



1. Framework Agreement on Comprehensive Economic Co-operation betweenthe Association of South East Asian Nations (ASEAN) and India.

2. India-Singapore Comprehensive Economic Cooperation Agreement (CECA)3. Framework Agreement for establishing Free Trade between India and

Thailand4. Joint Study Group (JSG) to Explore the Feasibility of Comprehensive Economic

Cooperation Agreement (CECA) between India and Malaysia5. Joint Study Group (JSG) to Explore the Feasibility of Comprehensive Economic

Cooperation Agreement (CECA) between India and Indonesia6. Framework Agreement with South Africa Customs Union (SACU)

7. Preferential Trade Agreement between India-Chile8. Comprehensive Economic Cooperation and Partnership Agreement (CECPA)

between India with Mauritius.9. Free Trade Agreement (FTA) between India and Gulf Cooperation

Council(GCC)

10.Status of Negotiations between India and Korea11.Status of Negotiation between India and Japan

12.Status of India-China RTA Negotiations13. India-Mercosur PTA14.ASIA PACIFIC TRADE AGREEMENT (APTA)

15.Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation(BIMSTEC)

16.Global System of Trade Preferences (GSTP)17.Generalized System of Preferences (GSP)

18.Agreement on South Asia Free Trade Area (SAFTA)19. India-Afghanistan Preferential Trade Agreement

20.Agreement on India-Bhutan Trade & Commerce21. India-Nepal Treaty of Trade

22. India-Sri Lanka Free Trade Agreement

23. Trade Agreement between India and Bangladesh24.Trade Agreement between India and Maldives25. Joint Study Group between India and Russia

26. Joint Study Group between Israel and India27. India-EU High Level Trade Group

Of these above RTAs, the two important RTAs are as under :-

1. Agreement on South Asia Free Trade Area (SAFTA)2. Framework Agreement on Comprehensive Economic Co-operation between

the Association of South East Asian Nations (ASEAN) and India.



Agreement on South Asia Free Trade Area (SAFTA)

The Agreement on South Asian Free Trade Area (SAFTA) was signed by all themember states of the South Asian Association for Regional Cooperation (SAARC),

namely, India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka, duringthe Twelfth SAARC Summit held in Islamabad on 4-6th January, 2004. Afghanistan

joined this august group in 2005. SAFTA, along with its four annexes, has come intoforce from 1st January, 2006. India, Pakistan and Sri Lanka are categorized as Non-

Least Developed Contracting States (NLDCS) and Afghanistan, Bangladesh, Bhutan

Maldives and Nepal are categorized as Least Developed Contracting States (LDCS).It also has nine Observers, namely China, EU, Iran, Republic of Korea, Australia,Japan, Mauritius, Myanmar and USA.

2. Article 7 of the SAFTA Agreement provides for a phased tariff liberalization

programme (TLP) under which, in two years, NLDCS would bring down tariffs to

20%, while LDCS will bring them down to 30%. Non-LDCS will then bring down

tariffs from 20% to 0-5% in 5 years (Sri Lanka 6 years), while LDCS will do so in 8

years. NLDCs will reduce their tariffs for L.D.C. products to 0-5% in 3 years. This

TLP covers all tariff lines except those kept in the sensitive list (negative list) by the

member states.

3. The salient features of the four Annexes of SAFTA Agreement are as under:

(i) Rules of Origin:

(a) For giving preferential access to the Member Countries under

SAFTA, the goods shall have undergone substantial manufacturing process in

the exporting countries. The substantial manufacturing processes are defined

in terms of twin criteria of Change of Tariff Heading (CTH) at four-digit

Harmonized Coding System (HS) and value content of 40% (30% for LDCSs).

(b) Apart from the general rules it provides for Products-Specific Rules (PSR) for

191 tariff lines to accommodate the interest of LDCSs given their limited base

for natural resources and undiversified industrial structure. The Products

Specific Rules have been provided clearly on technical grounds i.e. where

both inputs and outputs are at the same four-digit HS level.

(ii) Sensitive Lists:



The summary of the Sensitive Lists are as under:

Sl.No. Name of the

Contracting States

No of tariff lines for

LDCS

No of tariff lines for

Non-LDCS

Consolidated

list

1 Bangladesh 1249 1254 -------

2 Bhutan ----- ----- 137

3 India 744 865 ------

4 Maldives -- -- 671

5 Nepal -- --- 1335

6 Pakistan -- --- 1183

7 Sri Lanka ---- ------ 1065

8 Afghanistan 1063

(b) India has offered Bangladesh market access for 8 million pieces of garments; 3

million pieces with the condition of sourcing fabrics from India, an additional three

million garments with the condition of using fabrics of either Indian

or Bangladesh origin and a further two million pieces without any condition.

(iii). Mechanism for Compensation of Revenue Loss (MCRL) for the Least

Developed Contracting States:

(a) The compensation to LDCSs, except to Maldives, would be available for four

years; to Maldives it would be for six years.

(b) The compensation would be in the form of grant in US dollar.

(c) The compensation would be subject to a cap of 1%, 1%, 5% and 3% of

customs revenue collected on non sensitive items under bilateral trade in thebase year, i.e., average of 2004 and 2005.

The compensation shall be administered by the Committee of Experts as per

the Administrative Arrangements defined in this Annex.

(iv). Technical Assistance to Least Developed Contracting States in

agreed areas.

The main areas covered are - capacity building in standards, product

certification, training of human resources, data management, institutional up-

gradations, improvement of legal systems and administration, customsprocedures and trade facilitation, market development and promotion.

Implementation of SAFTA Agreement:



a) SAFTA concessions would cease for the LDC Member States once the Non-

LDCSs complete the Trade Liberalization Programme (TLP) for LDCSs within three

years. If any items, on which SAPTA concessions are available to LDCSs, appear in

the Sensitive List of Non-LDCSs, they shall maintain the same level of concessions

through derogation under Article 7(3)(a) and indicate the same in their respective

Sensitive Lists, and if the items under TLP enjoy tariff preferences under SAPTA, theNon-LDCS shall reduce their tariff on those items to a rate not higher than the rate

applicable for LDCS under SAPTA on the date agreed for base rate for TLP.

b) The base rate for the purpose of tariff reduction would be MFN applied rate

existing as on 1st January 2006.

c) Commencement of TLP: In view of different budget period of Member States,

instead of 1 January, 2006, the member states decided to give effect to the phased

tariff liberalization programme with effect from 1st July 2006 (Nepal from 1st August

2006) with the condition that the TLP for the first two years would be completed by

31st December, 2007. India had notified tariff concessions for the first installment

(1 July 2006 to 31.12.2006) in respect of the first phase vide customs notifications

Nos. 67/2006, 68/2006 and 69/2006 and for the second installment in the first

phase (with effect from 1.1.2007) vide Customs notifications No. 140/2006 and

141/2006. The notifications issued by Pakistan for the first and second

installments have a rider that Indian imports into Pakistan would continue to be as

per their Positive List of importable items from India which at present consists of

1075 tariff lines.

The latest developments in Seventeenth Summit at November 11, 2011 inMaldives

Top officials of India and Pakistan Monday emphasised on the need for complete

normalisation of trade ties through dismantling of non-tariff barriers and full

implementation of the South Asia Free Trade Agreement (SAFTA) obligations

Commerce ministers of India and Pakistan recently set a target to increasebilateral trade to USD 6 billion in three years from the current USD

2.7 billion.The meetings of the commerce secretaries follows the Pakistani cabinet's

decision Nov 2 to grant India most favoured nation (MFN) status,seen as an important step to normalise trade ties.

With granting the MFN status, Pakistan will now treat India on parwith its other favoured trading partners. India had granted Pakistan

the MFN status in 1996.India made a strong pitch for trade liberalisation in South Asia by announcing

reduction of the 'sensitive list' for least developed countries under the SouthAsian Free Trade Area Agreement (SAFTA) from the existing 480 tariff lines to



25 tariff lines. India will give zero basic customs duty access to allitems removed from the list immediately

India's Home Ministry and Pakistan's Interior Ministry have arrived at a 'broadagreement' on a liberalized visa regime for Indian and Pakistani businessmen.

The one-year multiple-entry visa would allow business persons to visit up to10 cities with no requirement of a police report and no restriction on places of

entry and exitThe South Asian Free Trade Agreement (SAFTA) has several safeguards to give

comfort to domestic industry as these safeguards would allow imports to bestopped should there be any disruption of the domestic industry, he said.

Pakistan is open to preparing a road map with Pakistan for preferentialtrading arrangements under the SAFTA process. The goal is to reach

peak tariff levels of no more than 5% for all major traded andtradable commodities

SAFTA to continue to work towards the development of the “VisionStatement” for South Asia and its future development, including on

the goal and elements of a South Asian Economic Union, as mayemerge from its subsequent meetings.

SAFTA Ministerial Council to intensify efforts to fully and effectively

implement SAFTA and the work on reduction in Sensitive Lists as wellas early resolution of non-tariff barriers and expediting the process of harmonizing standards and customs procedures.

SAARC Finance Ministers to chart a proposal that would allow for greaterflow of financial capital and intra-regional long-term investment.

SAFTA to hold the Twelfth SAARC Trade Fair along with SAARC Travel andTourism Fair in Kulhudhuffushi, Maldives in 2012; and to develop

modalities, by involving the relevant private sector, in promoting theregion globally as ‘Destination South Asia.’

SAFTA to conclude the Regional Railways Agreement and to convene theExpert Group Meeting on the Motor Vehicles Agreement before the

next Session of the Council of Ministers; and to direct the early

conducting of a demonstration run of a container train (Bangladesh –India – Nepal)

SAFTA to ensure completion of the preparatory work on the Indian OceanCargo and Passenger Ferry Service, including the Feasibility Study, by

the end of 2011, in order to launch the Service.SAFTA to work towards the conclusion of the Inter-governmental

Framework Agreement for Energy Cooperation and the Study on the

Regional Power Exchange Concept as also the work related to SAARCMarket for Electricity.

SAFTA countries to make available an appropriate percentage of nationalincome towards the respective countries’ renewable energy

investments, subject to the approval of national arrangements.

http://timesofindia.indiatimes.com/topic/SAFTA

http://www.saarc-sec.org./uploads/news-updates/image/17%20Summit_20111112120541.jpg

http://timesofindia.indiatimes.com/topic/SAFTA



The Seventeenth Summit was held from 10-11 of November 2011 in Addu City,Maldives. The Meeting, which was held at the Equatorial Convention Centre, Addu

City was opened by the outgoing Chair of SAARC, Prime Minister of the RoyalGovernment of Bhutan, H.E.Lyonchhen Jigmi Yoezer Thinley.

In her address Secretary General stated that the Summit being held under the

theme of “Building Bridges” provides further impetus and momentum to build themany bridges that needs to be built: from bridging the gaps created by uneven

economic development and income distribution, the gaps in recognizing andrespecting the equality of men and women, the closing of space between intent and

implementation.

SAFTA and India: The Road to Success

Over the past decade, globalization and Asia’s impressive economic performance,

driven mainly by strong GDP growth of China and India,have created an unprecedented environment for the growth of intraregional trade

and investment. In the region Pakistan and Bangladesh have also registered highgrowth rates. Trade and investment flows have played a crucial role in the economic

integration of other regions of the world, and they have the potential todo the same in South Asia. The realities on the ground with respect to trade among

the region’s neighbors are, however, still sobering; left to themselves, theycould continue to deter regional economic integration. In terms of intraregional

trade and investment in goods and services, South Asia lags far behind otherregions. There have been several studies on the economic gains that would accrue

from SAFTA. Most indicate significant advantages to both India and ‘smaller’ countries, particularly Bangladesh and Pakistan. However, there is much variation

across studies in the magnitude predicted for these advantages. Furthermore, these

SAFTA gains are not large in either absolute or relative (to total exports) terms,because most models used in the freetrade policy simulations are constrained bythe existing parameters – the current small volume of trade among these countries.

As such, any computation of the response of trade to rapid GDP growthand liberalisation based on these volumes would not do justice to the potential

impact of SAFTA.

Broadening the current SAFTA agreement beyond trade in goods to include areas of

services and investment is equally important. Evidence from other regional groupingsshows, that investment flows play at least as significant a role as trade in

promoting integration of economies. While free trade alone will yield gains,these are unlikely to be great. However, dynamic long-term effects can

be significant, particularly if combined with aggressive trade facilitation measures,removal of NTBs, opening up the services sectors and, in particular, liberalisation of

the investment regime. The full realization of the gains of freer tradeand investment would also require continuous and massive investment in physical

infrastructure to connect the region more efficiently.

India being the largest country in South Asia in terms of land area, population,

and the size of its economy and being the most advanced country considering itsindustrial base can play a pivotal role in regional integration. But so far India has



been slightly reluctant to play the lead role, perhaps due to her dilemma oversuch a role because of the possible conflict it may create in the SAARC process

and the anticipated negative reaction to such a role by other members.Another reason can be attributed to India’s relationship with Pakistan which at times

had slowed down the overall progress. India seems to have changed its stancerecently and has shown willingness to play a bigger role. The acceptance of

the Mechanism for Compensation for Revenue Loss (MCRL) by India is one suchinstance. India, being the larger and relatively more developed economy, knew that

it would bear the major chunk of the cost in paying compensation. India has alsoagreed to offer TRQ of 8 million pieces of garments at zero duty to Bangladesh

and to the proposal of the LDCs for technical assistance in areas like capacitybuilding in standards, product certification, training of human resource, improvement

of legal system and administration, customs procedures and trade facilitation.

One of the reasons cited for Bangladesh’s textile exports not entering into the Indianmarket despite getting SAPTA concessions on these items related to mixed import

duty structure on garments. This issue would be settled as the duties would be

eliminated on such products under SAFTA and therefore, the specific duty wouldlose the relevance in SAFTA. This would provide greater opportunity to Bangladesh

to export these items to India. The flow of trade would, however, depend on severalfactors like the ROO on these items, supply side constraints and infrastructural

bottlenecks.

Many exporters from South Asian LDCs allege that India maintains some critical

NTBs on their exports. For example, studies have indicated that many exportersfrom Bangladesh consider NTBs in India, not the tariffs in India, as the major

constraint for their export expansion in India. Though such measures may be totallyWTO compatible, the fact is that it creates difficulty to the exporters of

neighboring countries, causing irritation. Delays in testing and certification at bordercheck points have more damaging impact on the export of perishable items. It

would therefore be important for India to address such concerns in the spirit

and goodwill of SAFTA. The customs procedures would need to be streamlined,testing facilities would need to be built at the border check pointsand the infrastructure at both ends of borders would need to be improved. Given its

size and importance in SAARC, it is important that India provides technicaland financial assistance for building these facilities at both the ends.

India recognized these problems and even though efforts are made in this regard,

the slow progress on these issues has caused dissatisfaction to India’s neighborsespecially the LDC members.

In order to give a thrust to the process of trade liberalisation under SAFTA,

the announcement made by the Indian Prime Minister to reduce the items from itssensitive list voluntarily is timely and appropriate. Since India has

a favorable balance of trade with the SAARC LDCs, it needs to give preferentialmarket access in such a manner that this gap is reduced. It would therefore be

important that items where the LDC members have global exports areremoved from its sensitive list. The commitment in SAFTA is to bring the duties down

to the range of 05 percent. Therefore a country can maintain its SAFTApreferential duties at five percent even at the end of tariff liberalisation period. This

may deny substantial market access opportunities to the LDCs, as the preferentialimport duty of five percent may not provide them meaningful market access to

other SAARC Member Countries. India’s announcement to eliminate duties for LDCs



under SAFTA with an advancement of its tariff liberalisation programme isanother positive step.

Framework Agreement on Comprehensive Economic Co-operation

between the Association of South East Asian Nations (ASEAN) and India.



Member Nations:-

1. Brunei Daressalam2. Cambodia

3. Indonesia

4. Lao PDR5. Malaysia

6. Myanmar7. Philippines

8. Singapore9. Thailand

10.Vietnam

India’s engagement with the Association of South East Asian Nations (ASEAN)

started with its "Look East Policy" in the year 1991. ASEAN has a membership of 10

countries namely Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia,

Myanmar, Philippines, Singapore, Thailand and Vietnam. India became a Sectoral

Dialogue Partner of ASEAN in 1992 and Full Dialogue Partner in 1996. In November

2001, the ASEAN-India relationship was upgraded to the summit level.

2. The 1st ASEAN Economic Ministers (AEM) – India Consultations were held on

15th September 2002 in Brunei Darussalam where the Ministers, after discussing theJoint Study Report decided to establish an ASEAN-India Economic Linkages Task

Force (AIELTF). The AIELTF was asked to prepare a draft Framework Agreement to

enhance the ASEAN-India trade and economic cooperation before the 2nd AEM –

India Consultations. Subsequently, at the First ASEAN-India Summit held on 5

November 2002 in Phnom Penh, Cambodia, the erstwhile Prime Minister of India

made the following major announcements:-

i. India will extend special & differential trade treatment to ASEAN

countries, based on their levels of development to improve their market

access to India;

ii. FTA within 10 years timeframe;

3. A Framework Agreement on Comprehensive Economic Cooperation between

the Association of South East Asian Nations (ASEAN) and India was signed by the

Prime Minster of India and the Heads of Nation/Governments of ASEAN members

during the Second ASEAN – India Summit on 8th October 2003 in Bali, Indonesia.



4. The key elements of the Framework Agreement on Comprehensive Economic

Cooperation between the Association of South East Asian Nations (ASEAN) and India

cover FTA in Goods, Services and Investment, as well as Areas of Economic

Cooperation. The Agreement also provided for an Early Harvest Programme (EHP)

which covers areas of Economic Cooperation and a common list of items for

exchange of tariff concessions as a confidence building measure.

Current Status

5. The ASEAN-India Trade Negotiating Committee (TNC) was constituted and 14

meetings have been held so far. The ASEAN-India TNC is undertaking negotiations

for a Comprehensive Economic Cooperation Agreement (CECA) which includes a Free

Trade Area in goods, services and investment. Due to difference of opinion on Rules

of Origin, the EHP, agreed under the Framework Agreement, on Goods could not be

implemented. The new time frame for FTA in Goods has been agreed. The ASEAN-

India FTA(AI-FTA) negotiations are targeted to be concluded by July, 2007.

Agreement has been reached on the Rules of Origin. The TNC is now negotiating the

Sensitive Lists, modalities for tariff reduction and elimination, Dispute Settlement

Mechanism, etc. Both sides have reached an agreement recently on the size of

Negative List to be maintained by both sides, which will be 490 products with a trade

value cap of 5%.

Negotiations in Trade in Services and Investment are expected to begin

immediately after the Agreement on Trade in Goods is concluded.

The latest developments in Seventeenth Summit at November 11, 2011 inIndonesia

The 19th ASEAN summit was held at Bali, Indonesia in November 2011.Apart from the

member nations, it was attended by host of major nations from across the globe. Under its

aegis, Sixth East Asia Summit (EAS) was held at the same venue, which was attended

by the Heads of State/Government of ASEAN Member States, Australia, the People’s

Republic of China, the Republic of India, Japan, the Republic of Korea, and the United

States of America. The Foreign Minister of the Russian Federation and the Minister of

Foreign Affairs of New Zealand attended the Summit on behalf of their respective

Leaders.ASEAN leaders hold an internal organization meeting. ASEAN leaders hold a

conference together with foreign ministers of the ASEAN Regional Forum. Leaders of 3

ASEAN Dialogue Partners (also known as ASEAN+3) namely China, Japan and SouthKorea hold a meeting with the ASEAN leaders. And a separate meeting is set for leaders

of 2 ASEAN Dialogue Partners (also known as ASEAN+CER)

namely Australia and New Zealand.

http://en.wikipedia.org/wiki/Australia

http://en.wikipedia.org/wiki/New_Zealand

http://en.wikipedia.org/wiki/Australia

http://en.wikipedia.org/wiki/New_Zealand



Impact for India due to ASEAN engagement

Today

ASEAN,being a

newlocomotive

of growthin the

globaleconomy,

togetherwith India,

could

become a

transmission belt of economic prosperity, political transformation and

cooperation.ASEAN and India are natural partners and their businesses and peoplescould benefit from this centre of growth with a combined market of approximately

1.8 billion people and about a combined GDP of US$ 3 trillion. The discussions at theDDIII included a deliberation on the future of ASEAN-India partnership; improving

ASEAN-India connectivity; enhancing cooperation in addressing non-traditionalsecurity issues; emerging regional architectures amidst the expansion of the East

Asia Summit; ASEAN Defense Ministers Plus; and the revival of the NalandaUniversity as a symbol of Asian renaissance. Themed “Beyond the First 20 Years of

India and ASEAN Engagement,” the DDIII was held in conjunction with the firstIndia-ASEAN Business Fair and Business Conclave. Indian leadership has expressed

optimism on the future of ASEAN-India dialogue partnership and they look forward to

celebrate the 20th anniversary of ASEAN-India dialogue partnership next year, withthe achievement of the US$ 70 billion trade target envisioned by India’s PrimeMinister Manmohan Singh. Since the entry into force of the ASEAN-India Trade in

Goods Agreement a year ago, trade between ASEAN and India remain strong despitethe global economic crisis and saw a remarkable increased to US$ 50 billion in 2010

from US$ 39.1 billion in 2009.

Since its start about a decade ago, the partnership between India and theAssociation of South East Asian Nations (ASEAN) comprising Brunei, Cambodia,

Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand andVietnam has been developing at quite a fast pace.

India became a sectoral dialogue partner of ASEAN in 1992. Mutual interest ledASEAN to invite India to become its full dialogue partner during the fifth ASEAN

Summit in Bangkok in 1995. India also became a member of the ASEAN RegionalForum (ARF) in 1996. India and ASEAN have been holding summit-level meetings on

an annual basis since 2002.

In August 2009, India signed a Free Trade Agreement (FTA) with the ASEAN

members in Thailand. Under the ASEAN-India FTA, ASEAN member countries and



India will lift import tariffs on more than 80 per cent of traded products between2013 and 2016, according to a release by the Ministry of Commerce and Industry.

In January 2010, Singapore, Malaysia and Thailand accepted the FTA on goods. Theother seven ASEAN countries are expected to operationalize the FTA by August 2010.

India and ASEAN are currently negotiating agreements on trade in services andinvestment. The services negotiations are taking place on a request-offer basis,

wherein both sides make requests for the openings they seek and offers are made by

the receiving country based on the requests.

India has made requests in a number of areas including teaching, nursing,architecture, chartered accountancy and medicine as it has a large number of English

speaking professionals in these areas who can gain from job opportunities in theASEAN region. India is also keen on expanding its telecom, IT, tourism and banking

network in ASEAN countries.

Trade

The deepening of ties between India and ASEAN is reflected in the continuedbuoyancy in trade figures.

India’s trade with ASEAN countries has increased from US$ 30.7 billion in 2006-07 to

US$ 39.08 billion in 2007-08 and to US$ 45.34 billion in 2008-09. During April –September 2009-10, India’s trade with ASEAN was US$ 20.19 billion, according to

data released by the Ministry of Commerce and Industry.

In 2008-09, India's exports to ASEAN totaled US$ 19.14 billion. During April-December 2009-10, India exported goods worth US$ 12.8 billion to ASEAN,

according to data released by the Ministry of Commerce and Industry.

India imported goods worth US$ 26.3 billion in 2008-09 from ASEAN. During the

period April-December 2009-10, India's imports from ASEAN totaled US$ 18.09billion, according to data released by the Ministry of Commerce and Industry.

Singapore

The growing bilateral economic relationship is reflected in the rapidly rising bilateral

trade between Singapore and India. Singapore continues to be the single largestinvestor in India amongst the ASEAN countries and the second largest amongst all

countries with foreign direct investment (FDI) inflows into India, totalling US$ 2.4billion in 2009-10. The cumulative FDI inflows from Singapore during April 2000 and

March 2010 were US$ 10.2 billion, according to data released by the Department of Industrial Policy and Promotion (DIPP).

The total bilateral trade during 2008-09 was US$ 16.1 billion, an increase of 3.86 percent over US$ 15.5 billion in 2007-08, according to data released by the Ministry of

Commerce and Industry.

During 2008-09, India exported goods worth US$ 8.45 billion to Singapore. During

April-December 2009-10, Indian merchandise exports to Singapore totaled US$ 5.12



billion, comprising mainly of mineral fuels and oils, ships, boats and floatingstructures and natural pearls, gems and jewellery, according to data released by the

Ministry of Commerce and Industry.

With Singapore, India has agreed on a bilateral economic roadmap to take the India-

Singapore Comprehensive Economic Cooperation Agreement (CECA) forward in the

coming five years. As per the roadmap the two countries will work towards doublingthe annual bilateral trade by 2015. Moreover, they will promote greater business andinvestment flows by identifying ways in which Indian businesses can leverage on

Singapore as a business hub in the Asia Pacific to support their internationalexpansion.

The two countries will also explore and develop co-operation, in science andtechnology, intellectual property rights, and media.

India-Singapore Bilateral Economic Roadmap includes:

• Increase two-way flow of tourists, businessmen and professionals

• Expedite conclusion of mutual recognition agreements (MRAs) for dentistry,medical, nursing, architecture, accountancy and company secretary

professionals on priority

• Explore expansion of the provisions of CECA to liberalise and facilitatemovement of Indian professionals to Singapore.

• Develop closer co-operation in tourism

Moreover, according to Standard Chartered Bank, the business between India andSingapore is set to double in the next five years. The number of Singapore-based

companies setting up operations in India, 350 at present, is expected to double inthe next five years. Similarly, India-based business community in Singapore is likely

to increase to 5,500 companies from the present 4,000 in the next two and a half

years.

Malaysia

The bilateral economic relationship between India and Malaysia has been steadily

moving ahead. Malaysia has been a huge source of FDI for India. In fact, Malaysia is

the 25th largest overall investor and third largest investor among ASEAN countrieswith a total inflow of US$ 252.97 million during the April 2000-March 2010 period,

according to data released by the Department of Industrial Policy and Promotion.

Bilateral trade among the two countries amounted to US$ 10,604.75 million during2008-09, an increase of 23.48 per cent over 2007-08, according to data released by

the Ministry of Commerce and Industry.

India exported goods worth US$ 3.42 billion to Malaysia in 2008-09. During April-

December 2009-10, India’s exports to Malaysia totalled US$ 2.14 billion, comprisingships, boats and floating structures, mineral oils and fuels, and organic chemicals,

according to data released by the Ministry of Commerce and Industry.



Indians play an important role in promoting tourism in Malaysia. Following a 7.1 percent growth in revenues from Indian tourists in 2009, Malaysia expects 650,000

visitors from India in 2010, according to the Director General of Malaysia Tourism.

Moreover, Indian biotech companies are increasingly looking at making investments

in Malaysia. Malaysia is positioning itself as a cost-competitive country and a regional

hub for global biotech companies. It is attracting Indian companies with a largenumber of sops including a 10-year tax holiday, duty exemptions, customisedincentives for large investments, access to ASEAN markets through free trade

agreements and no restrictions on equity.

Thailand

Bilateral trade between the two countries touched US$ 4.6 billion in 2008-09, ascompared to US$ 4.12 billion in 2007-08, registering a growth of 12.9 per cent,

according to data released by the Ministry of Commerce and Industry. Total FDIinflow during the period April 2000-March 2010 from Thailand was US$ 77.97 million,

according to data released by the Department of Industrial Policy and Promotion.

India and Thailand are targetting bilateral trade worth US$ 12 billion by 2012. In

May 2010, the Thai Deputy Minister of Commerce, Alongkorn Ponlabhoot said, "Weare hoping that the increase in trade would be generated through cooperation under

various agreements like the BIMSTEC, the Asean-India FTA and the proposedThailand-India FTA.

Bilateral trade between India and Indonesia totalled US$ 9.3 billion in 2008-09, an

increase of 32.08 per cent over US$ 6.99 billion in 2007-08, according to datareleased by the Ministry of Commerce and Industry. Total FDI inflow during the

period April 2000-March 2010 from Thailand was US$ 77.97 million, according to

data released by the Department of Industrial Policy and Promotion. India andThailand are targeting bilateral trade worth US$ 12 billion by 2012. Thailand is

hoping that the increase in trade would be generated through cooperation undervarious agreements like the BIMSTEC, the Asean-India FTA and the proposed

Thailand-India FTA.

Indonesia

During the period 2008-09, India exported goods worth US$ 2.56 billion toIndonesia. During April-December 2009-10, India exported goods worth US$ 2.3

billion to Indonesia comprising mainly of organic chemicals, mineral fuels and shipsand boats, according to data released by the Ministry of Commerce and

Industry.India and Indonesia are targeting bilateral trade worth US$ 20 billion by2020.Indonesia is an important source of FDI for India. It is the 16th largest FDI

investor amongst all countries and the second largest amongst the ASEAN countries.FDI inflows from Indonesia into India totaled US$ 604.28 million during April 2000-

March 2010, according to data released by the Department of Industrial Policy and

Promotion.

Myanmar



During 2008-09, India exported goods worth US$ 221.64 million to Myanmarcomprising mainly of pharmaceuticals and iron and steel. Bilateral trade stood at US$

1.15 billion during 2008-09, an increase of 15.7 per cent over US$ 994.45 million in2007-08, according to the latest data by the Ministry of Commerce and Industry.

During April-December 2009-10, India’s exports to Myanmar totaled US$ 159.77million, according to the latest data by the Ministry of Commerce and Industry.FDI

inflows from Myanmar into India totalled US$ 8.96 million in the period April 2000-March 2010, according to data released by the Department of Industrial Policy and

Promotion.

Vietnam

Bilateral trade between India and Vietnam grew to US$ 2.15 billion in 2008-09 fromUS$ 1.78 billion in 2007-08, registering a growth of 20.38 per cent, according to the

latest data by the Ministry of Commerce and Industry. Indian exports to Vietnam in2008-09 totaled US$ 1.7 billion, while India exported goods worth US$ 1.25 billion

from Vietnam during April-December 2009-10 comprising mainly of residues andwastes from food industries, animal fodder, meat and cereals, according to the latest

data by the Ministry of Commerce and Industry.

Philippines

Bilateral trade between India and Philippines was worth US$ 998.54 million in 2008-09 as compared to US$ 824.87 million in 2007-08, an increase of 21.05 per cent,

according to the latest data by the Ministry of Commerce and Industry. Indianexports to Philippines during 2008-09 totaled US$ 743.77 million. During April-

December 2009-10, India exported goods worth US$ 534.38 million to Philippines,comprising chiefly of meat, iron and steel and vehicles other than railways, according

to the latest data by the Ministry of Commerce and Industry.

Cambodia

During 2008-09, bilateral trade between the two countries stood at US$ 49.61million. India exported goods worth US$ 46.90 million to Cambodia in 2008-09.

During April-December 2009-10, India exported goods worth US$ 30.53 million,chiefly comprising pharmaceuticals, cotton and tobacco, according to the latest data

by the Ministry of Commerce and Industry.

India exported goods worth US$ 1.94 billion in 2008-09 and worth US$ 1.25 billion

during April-December 2009-10, to Thailand which included natural pearls, gems and jewellery, residue and waste from food industries and organic chemicals, according

to data released by the Ministry of Commerce and Industry.

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