India's Commerce Department Urges ASEAN To Buy More From India
From Ahmad Aidil Syukri Hamzah
NEW DELHI, Nov 29 (Bernama) -- The balance of trade relationship between India and ASEAN is crucial for long-term economic growth and should not be skewed in favour of one side, said India’s Commerce Department’s Additional Secretary Rajesh Agrawal.
ASEAN countries should therefore explore avenues to boost imports from India, he said.
At a session with ASEAN journalists at his office in New Delhi recently, Rajesh highlighted the trade imbalance between India and ASEAN, noting that while India’s imports from ASEAN total US$80 billion, or 11 per cent of its total imports, India’s exports to ASEAN were significantly lower at US$40 billion, just 2.2 per cent of ASEAN's total imports.
"Today, India imports US$80 billion worth of goods from ASEAN, but we only export US$40 billion to you (ASEAN). If bloc members can find ways to raise imports from India, it will open up a much larger market and India can also buy more from ASEAN in the future," Rajesh said.
He also added that the regional bloc and India share similar demographics, particularly in terms of their young populations, which provide significant opportunities for mutual collaboration.
"ASEAN member countries also have comparatively young populations. There are a lot of complementarities we can offer each other.”
India’s import growth from ASEAN has outpaced its exports, which has resulted in a widening trade deficit.
Currently, more than 50 per cent of India’s ASEAN imports comprise coal and palm oil, while India’s exports include refined petroleum products, commercial vehicles, telecommunications equipment, agriculture products and engineering goods.
India's trade with ASEAN is largely concentrated in Indonesia, Singapore, Malaysia, Thailand and Vietnam.
-- BERNAMA