Exports to Asean countries to get a fillip by 2016

AHMEDABAD: India's exports to the Asean countries would get a filip with zero duty regime expected to come into force by January 1, 2016, an expert said here today.

The total exports to Asean counties stood at Rs 1,24,130 crore in 2010-11, compared to 85,902 crore a year ago.

"Under the Asean trade agreement, zero duty regime is expected from January 1, 2016, which will provide a filip to exports," said Sudhakar Kasture, Director, Exim Institute, a division of Helpline Impex Pvt Ltd.

"China, which entered into Asean agreement a year later than India in 2011, has had advantage as it got zero duty regime from day one," he said.

The exports in 2010-11 to Asean countries such as Indonesia surged by 103.9 per cent at Rs 28,388 crore.

Exports to Malaysia rose by 39.6 per cent at Rs 18,067 crore, to Thailand by 60.5 per cent, and Myanmar by 60.8 per cent.

To further boost exports to countries like Thailand, India has held several rounds of talks for India-Thailand Comprehensive Economic Cooperation Agreement(CECA), he said.

Citing Ministry of Commerce data, Kasture said that 20 rounds of negotiations had been held so far.

India's total exports are pegged at around USD 300 billion, of which nearly 15 per cent account for European Union, he said.

"European Union has decided to discontinue Generalised System of Preference (GSP) status for India from January 1, 2014 for the prime reason that India doesn't qualify because of its widened export base," Kasture said.

The decision taken by the EU Trade Commissioner will be implemented from January 1, 2014, he said.

As a result, Indian products will attract normal duty, depending on EU tariffs, making it costlier for importer there, he added.