The Hindu Business Line : India’s trade will gain from growing eastern economies

Chennai, Feb. 18 India’s export growth would propel forward if the country leveraged opportunities existing in the eastern economies, said the former Secretary, Ministries of Petroleum and Finance, Dr S. Narayan.

Delivering the inaugural address at the seminar on ‘Current business opportunities for India in Malaysia and Singapore’ organised by the Madras Chamber of Commerce and Industry (MCCI) and the South India Chamber of Commerce and Industry (SICCI), he said even though trade with the US and European nations had been growing, it was necessary to note similar growth happening in trade with China and South East nations.

Trade as a percentage of GDP has reached about 40 per cent and therefore it was essential for India to know the happenings in the rest of the world, he said. Economies of Singapore, Malaysia, Cambodia, Vietnam, China, Taiwan and Korea had been healthy and growing while that of the western countries were not at the same pace. So, there were opportunities for India’s trade to grow along with growing economies, he added.

Neighbouring links

Delivering the theme presentation, the member of the Catalyst Advisory Committee-Singapore Exchange, Mr Phillip Tan, said historically India had close social, commercial and political links with Malaysia and Singapore. The laws of both countries were based on English law, which was similar to that in India, and so the Indian investors would feel at home in these countries. While Malaysia sought investments in medical/pharmaceutical sector, electronics and agriculture, Singapore would invite investments in any sector, he said.

If Indian companies set up shops in Singapore then they might use Singapore’s FTA (Free Trade Agreement) with the US and other countries and enhance their business, he said. Giving an example, he said those companies planning to set up businesses in Singapore could manufacture 60 per cent of products in India, export to Singapore and add value to the balance 40 per cent. This would get them the sufficient local value addition eventually enabling export to their desired markets, leveraging the advantages of FTA, he said. “We, in Singapore, are trying to be a link between India, China and ASEAN,” he added.

India 1991-2007

Earlier MCCI President, Mr Aurn Bewoor, said Indian exports to Singapore witnessed a ten-fold increase to Rs 700 crore between 1991 and 2007. The increase was faster amongst most countries where India had concentrated to play a bigger role in global commerce.

He pointed out that the ‘Look East’ policy of the Government of India, which insisted that the country must strengthen, and reinforce relations on all parameters with neighbouring nations as much as it did with Europe and the Americas.

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