India-Asean FTA seen to open up huge opportunities for Indian business

The India-Asean free trade agreement presents corporate India opportunities in construction of agricultural buildings, bridges, irrigation canals, concrete works, roads and highways, school buildings, sports facilities and water-treatment plants in Asean nations, says a Ficci-Deloitte white paper on 'India-Asean Free Trade Agreement'.

Significant opportunities for Indian businesses would also be thrown open in industry / services categories like, machinery, equipment, appliances apparatus and associated products, office equipment, computers and supplies, instruments and appliances, industrial process control equipment, optical instruments, and horological instruments.

Several emerging areas such as pharmaceuticals, medical supplies, telecommunication, radio, television and communication equipment and related apparatus may also present greater opportunities.

The FTA, under which tariffs would be slashed across 4,000 product lines was signed in Bangkok on 13 August 2009, and came into effect from 1 January 2011, covering Malaysia, Thailand and Singapore.

Though at present, the FTA covers trade in goods, negotiations are under way for a similar agreement to cover services.

The white paper has identified a number of sectors in India and Asean countries that enjoy greater competitive advantage vis-a-vis their counterparts in other member countries. Indian players in sectors like, chemicals, medical, pharmaceuticals, textiles, apparels, handicrafts, carpets will enjoy a greater competitive advantage relative to their counterparts in the Asean countries.

According to the report, Indian companies could seriously look at the current open project tenders in the Asean region in construction projects including construction of bridges, canals, roads, school buildings, sports facilities and water-treatment plants.

The India-Asean FTA has not been implemented by the Philippines, as yet.