Shillong: India's business with ASEAN countries is only 30 percent of total ASEAN trade even as the thrust is on increasing business through infrastructural development connecting important trade points, Ministry of External Affairs Secretary (East) Anil Wadhwa said on Tuesday.
"India being a part of RCEP, the largest Economic Partnerships across the world having more than 10 countries, has a great potential in enjoying trade benefits with its neighbouring countries. However, India's trade with ASEAN countries is only 30 per cent of total ASEAN trade," Wadhwa said.
Addressing the inaugural session of 'India-ASEAN Connectivity: Challenges and opportunities for the North Eastern Region' here, Wadhwa said there has been a hike in trade by more than 16 percent following the FTA with ASEAN countries.
Focusing on the cost of transportation and logistics, he said special incentives have been given for development of connectivity and infrastructure projects.
The Shipping Corporation of India will be starting connectivity between eastern region of India and Yangon in Myanmar from next year which is considered to be one of the impactful activities to be implemented, he said.
The government is focusing on increasing the number of 'Visa on Arrival' from ASEAN countries, increasing duration of stay and enhancing the multiple entry schemes to travellers, he added.
Wadhwa said financial and communication linkages with ASEAN countries need to be developed focusing on border trades through Manipur.
"Manipur should develop as a multi-economic zone and Moreh should emerge as potential economic growth area," he said, adding that a host of initiatives are being implemented by the government.
Indonesian Ambassador in India Rizali Wilmar Indrakesuma said the Free Trade Agreement in goods and services would help in increasing trade ties and business potential between India and ASEAN countries.
Infrastructure development will lead to increase in transport of passengers and goods through Bay of Bengal and Indian Ocean with much lesser cost, thereby increasing the competitiveness and efficacy of the sectors.
Building industrial zones and integrated infrastructure would help potential and prospective sectors grow in the region, he said.
North Eastern Council secretary Ameising Luikham said there is a need to focus on development of transportation, logistics and communication technologies in line with Vision 2020.
Moreh-Madalay, Kaladan-Sitwe and some other communication ways have huge power to reduce operational cost once installed. However, problems with sanctioning funds by MDoNER lead to delay in development of projects, he said.
There is a need to consider existing corridors as economic corridors which would lead to development of economic attributes of stakeholders, which eventually needs more accountability and capacity building of factors, he added.
The official said that NEC, being one of the most powerful bodies in north eastern region involving high-profile and sectoral heads, needs to be engaged more in activities for project development.
