The Union Cabinet has given a go-ahead to a Project Development Fund (PDF) with a corpus of ₹500 crore to help Indian business explore economic opportunities in Cambodia, Laos Myanmar and Vietnam (CLMV) which could serve as a gateway to other markets including China and the European Union.

“CLMV countries have a unique position in the regional value chains and offer a gateway for market access to China, EU and other countries due to various trade agreements. It could help in securing on a long-term basis, a dedicated market for Indian raw materials and intermediate goods besides a dedicated source for inputs and raw materials for Indian industry,” an official release said. Sectors such as agro-processing, oil and gas, pharmaceuticals, wood and timber, light engineering, garments, automobiles, education, IT, small & medium enterprises, tourism and skill development have been identified as focus sectors for the region in a report brought out by Delhi-based research body RIS.

“Additional exports worth $100 billion are possible through this route, which in turn can address the trade deficit of India with China,” the report said. The CLMV countries, as part of ASEAN, can open doors to China, Japan, Korea, and Australia.

“Once Indian investments are made in these countries, the investors can have access to the markets of their FTA partners on preferential terms,” a government official said.

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