India’s Exports to ASEAN Estimated at US$ 46 billion in FY22: MoS, Commerce & Industry

ASEAN-India trade reached US$ 78.92 billion in 2020-21. Investment flows are also substantial both ways with ASEAN accounting for 18% of investment flows into India since 2000.

As one of the largest destinations for Indian exports, ASEAN will be an important region for India with an export target of US$ 46 billion in meeting the global export target of US$ 400 billion in financial year 2021-22, said Ms Anupriya Patel, Minister of State (MoS) of Commerce & Industry.

"ASEAN, with over 15 percent share in India’s global engineering shipment, is likely to be a key region to focus with a target of around US$ 16 billion of exports for 2021-22," the Minister said while addressing the India-ASEAN Engineering Partnership Summit organized by EEPC India.

India’s engineering exports to the world during the first four months (April-July) of fiscal 2021-22 was recorded at US$ 35.3 billion and is strongly expected to achieve the target set for fiscal 2021-22 at US$ 105 billion.

Ms Patel emphasized the need for opening up new avenues of bilateral cooperation in order to enhance engineering trade and investments between India and ASEAN.

"This will be instrumental in achieving the landmark export target set by the government both in terms of engineering as well as merchandise exports," she said.

Noting that ASEAN plays an important role as a source of raw material as well as intermediary engineering products for India, Ms Riva Ganguly Das, Secretary (East), Ministry of External Affairs said that ASEAN-India trade reached US$ 78.92 billion in 2020-21.

She stated that investment flows are also substantial both ways with ASEAN accounting for 18% of investment flows into India since 2000.

"India has an FTA with ASEAN spanning Goods, Services and Investment. India strongly feels that an early review of ASEAN-India Trade in Goods Agreement (AITIGA) is essential towards realizing the full potential of our trade ties," she said.

Ms Das highlighted that Indian Missions/Posts have been identified as the key points of support for expanding India’s exports in the markets abroad, and are being encouraged to carve out a space for India as a reliable and low-cost alternative manufacturing destination in the world.

"Engineering has emerged as an important component of the growing India-ASEAN Strategic Partnership, especially with the involvement of Indian engineering MSMEs," the Secretary (East) said.

In his inaugural address, EEPC India Chairman Mr Mahesh Desai said that with both ASEAN (Association of South-East Asian Nations) and India fast becoming prominent in the regional value chain on the global trade map, the time is apt for developing a well-structured bilateral relationship focusing on engineering goods.

"Going forward we need better integration between MSMEs from the two sides to tap the full potential of the bilateral relations. Nearly 60 percent of our member-exporters come from the MSME sector," said Mr Desai.

India’s bilateral trade with ASEAN economies is expected to reach US$ 300 billion by 2025. ASEAN is the fifth largest trading partner for India following North America, EU, North-East Asia and GCC - West Asia. ASEAN is India’s 3rd largest engineering export market and the 5th largest trade partner. Engineering goods account for 40% share in India’s total exports to ASEAN.

"The role of engineering in taking the India-ASEAN bilateral relation to its full potential is instrumental as engineering contributes around one-fourth of merchandise exports for both sides," said Mr. T.S. Bhasin, Chairman - Territorial Committee on Trade with ASEAN.

Supported by the Ministry of Commerce & Industry and Ministry of External Affairs, the four-day India-ASEAN Engineering Partnership Summit is expected to see the participation of over 300 delegates from the Indian industry. A sizable number of delegates from ASEAN countries will also join the summit. The summit will also cover B2B meetings, interactions etc.

The thematic sessions will cover a range of topics including country sessions, and emerging areas of cooperation like Industry 4.0, integration of MSME in the regional value chain.

The Government of Tamil Nadu joined the event as “Partner State” while Government of Haryana as “Focus State.”

EEPC India Vice Chairman Arun Garodia presented the vote of thanks to distinguished guests, dignitaries and other participants attending this inaugural session and sharing their valuable inputs.

An E-Book on India-ASEAN trade and investment emphasizing engineering and MSME sector was also launched during the inaugural session. The book covers several important aspects of enhancing bilateral trade and investment and also provides exhaustive information on India and ten ASEAN nations.