Asean And India Free Trade Agreement

In 2010, India concluded a free trade agreement with Indonesia, which reduced tariffs on imports of products such as seafood, chemicals and clothing. In return, Indonesia reduced tariffs on imports of Indian products. In 2011, India and Indonesia signed a total of 18 agreements in the mining, infrastructure and manufacturing sectors, totalling $15.1 billion, in addition to a free trade agreement on goods. At the 10th ASEAN-India Summit in New Delhi on 20 December 2012, India and ASEAN concluded negotiations on free trade agreements on services and investment. Both sides expect bilateral trade to rise to $100 billion by 2015 and $200 billion within a decade. [8] In tourism, the number of visitors from ASEAN to India rose to 277,000 in 2006, while the number of visitors arriving from India to ASEAN in 2008 was 1.985 million. At the sixth ASEAN-India Summit in Singapore on 21 November 2007, India proposed to fly one million tourists from ASEAN to India by 2010. At the second meeting of the ASEAN and India Tourism Ministers (ATM-India), held in Bandar Seri Begawan on 25 January 2010 India`s proposal to develop a cooperation agreement between ASEAN and India for tourism was welcomed and the ASEAN and India WORKING Group was invited to continue the study and preparation of the draft agreement. Ministers also supported the creation of the ASEAN Tourism Chapter in Mumbai as an important common platform for ASEAN national tourism organizations (NGOs) to market Southeast Asia to Indian consumers, while fostering mutual awareness between ASEAN member states and India. In 2010, trade relations strengthened further, with the Indian Chamber of Commerce of Laos signing several soft and agreements with organizations such as the Lao Chamber of Commerce, the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry.

India`s trade with ASEAN focuses mainly on Singapore, Malaysia and Thailand. India also signed a free trade agreement on products with Brunei in 2010, which significantly reduced import duties on products ranging from seafood to chemicals and clothing. In return, Brunei also reduced import tariffs on various Indian products. Given that Indian officials estimate that some lines are used up to 5%, India strives to ensure the trade balance in key lines, such as chemistry, rubber, metals, medical instruments and gemstones and jewellery. Over the years, discussions on reducing tariffs and removing non-trade barriers on various products of general interest, including palm oil products from Indonesia, pharmaceuticals and buffalo meat from India, have been carried out over the years.