India-ASEAN bilateral trade to touch USD 100 billion in 2015, double by 2020

The bilateral trade between India and ASEAN (Association of South East Asian Nationas) is expected to double from the current level of US $80 billion by 2022 even as it is expected to touch US $100 billion by 2015 on account of increasing commercial engagement between the two sides.

In 2009, the government signed a free trade agreement (FTA) in goods with ASEAN because of which trade between the two has been approaching the US $80 billion-level.

"We hope by 2015 it will touch US $100 billion and get doubled by 2022. So there is lot of scope," Commerce and Industry Minister Nirmala Sitharaman said on Thursday at the 2nd India-CLMV (Cambodia, Laos, Myanmar and Vietnam) Business Conclave in the national capital.

These countries are members of the 10-nation bloc Association of ASEAN.

Sitharaman said that FTA in services and investments with the region would come into effect from July 1, 2015, while adding that a lot of business opportunities exist in the region and both the sides can enhance cooperation in areas including agriculture, skill development, energy and textiles.

Speaking about the CLMV-region, Sitharaman said that Laos provides huge opportunities for domestic businesses in hydro-power generation. Laos has 26,000 MW hydro-power capacity but the installed capacity is only 7,000 MW.

The commerce minister said that north-eastern states of the country were keen to enhance economic ties with CLMV region.

"We are very keen to open north-east part of India to increase connectivity with this region. We are looking at north-east as a threshold tool for our Act East Policy," Sitharaman said.

The country's Look East Policy (LEP) is a major pillar of foreign affairs.

She added that the government's attempt was now to focus on the LEP and make it an Act East policy.

The minister also said that the government was working on the increasing air, rail, road and sea connectivity between India and CLMV-region.

There is a proposal to develop a tri-lateral highway connecting India, Myanmar and Thailand.