The Indo-ASEAN FTA in a sense takes forward India's “Look East” policy which was initiated in early 1990s, Shri Menon said, adding that today ASEAN was one of the fastest growing markets for our exports.
“It is often said that ASEAN offers a market of just about 600 million people as compared to the market of 1.2 billion being offered by India. There is another way of looking at this situation. ASEAN though has a smaller market in terms of demography, but it is a market of over US $ 355 billion of extra ASEAN imports. India's share in ASEAN's global imports is less than even 1% of their total imports. The possibilities are unlimited”, Shri Menon said.
The Ministry of Commerce had requested UNCTAD under the Project “Strategies and Preparedness for Trade and Globalisation in India” to conduct a study to identify the items which are sensitive for India in the Indo-ASEAN FTA.
In this connection, UNCTAD conducted a series of consultations with stakeholders throughout India in Ludhiana, Ahmedabad, Hyderabad, Cochin, Mumbai, Pune and Kolkata during January-February 2006.
The sectors chosen for consultations are spices, plantation crops, vegetable oils, rice, fish, textiles, chemicals & plastics, electronics, machinery, auto components & footwear.
“It is admitted that our domestic industry faces some handicaps as compared to the ASEAN countries, but considering these handicaps the offer list for ASEAN has been divided into four categories viz. Normal Track 1, where the tariffs would be eliminated by 2011, Normal Track 2, where the tariffs would be brought down to 5% by 2011 and eliminated by 2013, Sensitive Track 1, where the tariffs would be brought down to 5% by 2013 and eliminated by 2018."
"The fourth category is the Sensitive Track 2, where there would be no reduction or elimination of tariffs”, Commerce Secretary explained in his address.
Press Information Bureau Government of India
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