India, Asean should tap into each other’s market — HSBC M’sia

KUALA LUMPUR: India and the Association of Southeast Asian Nations (Asean) can tap into and complement each other’s vast and growing market to further bolster their growth potential, said HSBC Malaysia co-head of Global Banking Omar Mahmoud.

He said trade and consumption would spearhead both India’s and Southeast Asia’s economic fortunes over the medium term.

“India’s and Asean’s economies, if combined, would comprise the third-largest economy in the world, spanning 18 per cent of the planet’s population.

“Similarly, in the 10-member Asean, the number of middle-class households is forecast to top 120 million by 2025, roughly double what it was in 2010,” he said in a statement yesterday.

He said for Malaysia, the investment deals worth US$36 billion were signed last year to boost bilateral and investment relations between India and Malaysia, included higher learning education, port and highway construction, and coconut and palm oil development, among others.

For Asean and India, the focus currently will be on the completion of the Regional Comprehensive Economic Partnership (RCEP) -- the multi-lateral trade accord that is spearheaded by Asean and involves six of its Free-Trade Agreement partners, including India and China, which together cover 50 per cent of the world’s population.

India has warmed to RCEP recently, committing to eliminate up to 80 per cent of its goods tariffs in return for greater market access to Asean services sector and freer movement of its labour.

“Doing so will unlock significant growth potential for India’s burgeoning IT services sector, which constitutes 48 per cent of its total exports and the deal could collectively boost exports among the participating countries by four per cent going forward,” he said.

The broad electronics supply chain is vital to Asean, making up 30 per cent of the region’s total exports.

“India and Asean may not have the heft of the US, European Union or China’s economies. But they are rapidly becoming economic powerhouses that play a growing role in the global economy.

“Deeper ties between them will help both gain further international significance,” Omar added. — Bernama

For Asean and India, the focus currently will be on the completion of the RCEP – the multi-lateral trade accord that is spearheaded by Asean and involves six of its Free-Trade Agreement partners, including India and China, which together cover 50 per...