Indo-SAARC: Untapped Potential
India's trade with SAARC countries has been growing rapidly, but the global economic slowdown and financial crisis will have a cascading effect on this trade.
By ET Bureau |
India's trade with SAARC countries has been growing rapidly, but the global economic slowdown and financial crisis will have a cascading effect on this trade. As one of the premier banks in India, HSBC has been actively involved in helping Indian companies, including small and medium enterprises, to execute their trade transactions smoothly.
Puneet Chaddha, managing director and head, commercial banking, HSBC India, feels that Indo-SAARC trade offers enormous opportunities that are waiting to be tapped. According to Mr Chaddha, "Initiatives like SAFTA could help in further triggering growth in the future, but clearly there is going to be knock down effect on our economies. While trade typically grows faster than the GDP, the current crisis of confidence and challenges in securing financing are likely to impair trade projections."
He further added that in comparison to the traditional Western markets, doing business with SAARC countries is easier thanks to the region's cultural alignment and geographical proximity. "Elimination of non-tariff barriers (including customs hurdles) through trade facilitation measures and harmonization of product standards and technical specifications covered under the SAFTA agreement should favour businesses in the region. Some industries have also taken advantage of the tax benefits given in the bilateral agreements to set up manufacturing facilities overseas."
With one of the largest trade relationship management teams amongst international banks, HSBC in India offers highly rated advisory, finance and risk mitigation services to support the SME's international trade needs. Our geographic coverage spans across 85 countries and we have a strong presence in some of the key trading members within SAARC .
With customers ranging from international conglomerates to small scale handicrafts exporters, the firm has the necessary trade expertise across the spectrum to advice customers. The company's suite of trade products range from regular services like Foreign Currency Accounts & Deposits, Letters of Credit, Documentary Collections, Payment guarentees, etc. to customised services like Invoice Discounting (Factoring), Buyers Credit, Supplier financing, Forfaiting, LC Confirmation/ Negotiations, SBLCs, etc
Puneet Chaddha, managing director and head, commercial banking, HSBC India, feels that Indo-SAARC trade offers enormous opportunities that are waiting to be tapped. According to Mr Chaddha, "Initiatives like SAFTA could help in further triggering growth in the future, but clearly there is going to be knock down effect on our economies. While trade typically grows faster than the GDP, the current crisis of confidence and challenges in securing financing are likely to impair trade projections."
He further added that in comparison to the traditional Western markets, doing business with SAARC countries is easier thanks to the region's cultural alignment and geographical proximity. "Elimination of non-tariff barriers (including customs hurdles) through trade facilitation measures and harmonization of product standards and technical specifications covered under the SAFTA agreement should favour businesses in the region. Some industries have also taken advantage of the tax benefits given in the bilateral agreements to set up manufacturing facilities overseas."
With one of the largest trade relationship management teams amongst international banks, HSBC in India offers highly rated advisory, finance and risk mitigation services to support the SME's international trade needs. Our geographic coverage spans across 85 countries and we have a strong presence in some of the key trading members within SAARC .
With customers ranging from international conglomerates to small scale handicrafts exporters, the firm has the necessary trade expertise across the spectrum to advice customers. The company's suite of trade products range from regular services like Foreign Currency Accounts & Deposits, Letters of Credit, Documentary Collections, Payment guarentees, etc. to customised services like Invoice Discounting (Factoring), Buyers Credit, Supplier financing, Forfaiting, LC Confirmation/ Negotiations, SBLCs, etc
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