India to increase exports to Southeast Asia

India to increase exports to Southeast Asia

Associated Press, New Delhi

India's largest business grouping said on Monday that the country could triple its exports to Southeast Asia within two years by focusing on key sectors such as medicines, auto parts and jewelry.

India's trade with the 10-member Association of Southeast Asian Nations (ASEAN) accounted for about US$10 billion, or 8.6 percent of the country's worldwide trade of $114 billion, the Confederation of Indian Industries said in a report.

By concentrating on specific areas with growth potential - such as engineering goods, leather, processed food, medicines, auto parts and jewelry - India could meet its goal of boosting exports to ASEAN to $30 billion by 2007, it said.

"Greater focus by Indian industry, especially where the products are cost competitive, such as drugs and pharmaceuticals, chemicals, etc., could yield positive results," the confederation said.

The confederation released its report ahead of an annual India-ASEAN Business Summit.

It also comes as India and ASEAN discuss progress toward a free-trade pact.

Later on Monday, ASEAN Secretary-General Ong Keng Yong was to address the Federation of Indian Chambers of Commerce and Industry, which is co-hosting this week's business summit with the Confederation of Indian Industries. Prime Minister Manmohan Singh is to address the summit on Wednesday.

ASEAN, which has its own free-trade agreement, is in discussions about free-trade pacts with a range of countries, including Japan, South Korea, China, New Zealand and Australia, and the European Union.

India - a country of 1.06 billion people with a meager 0.7 percent of global trade, also wants to explore free-trade agreements with Japan, China and the U.S., Commerce Minister Kamal Nath said in an interview last month.