India-ASEAN FTA review may correct trade deficit scenario:CII

New Delhi, Sep 11 () The decision to review a 10-year-old free-trade pact signed between India and the 10-member bloc of South-East Asian nations is expected to correct the bilateral trade deficit which ballooned to USD 22 billion in 2018-19, CII said on Wednesday. Contrary to expectation, the free-trade agreement (FTA) with ASEAN did not bring desired gains for the Indian industry in terms of enhanced exports, Confederation of Indian Industry (CII) Director-General Chandrajit Banerjee said.
"India's trade deficit with ASEAN, which was approximately USD 12 billion in 2010-11 jumped to over USD 22 billion in 2018-19. With the review, we expect the situation to be corrected," Banerjee said.
India and the ASEAN members have agreed to review their FTA, signed in 2009, to make it more business-friendly and boost economic ties.
The two sides also decided to constitute a joint committee for this purpose, according to a statement earlier.
This was agreed upon during the meeting between economic ministers of ASEAN and Commerce Minister Piyush Goyal in Bangkok on Tuesday. They met for 16th AEM-India consultations.
"The review of India ASEAN Trade in Goods Agreement comes at an opportune time as there has been an intensification of the trade war and increased protectionist trends across the world. The review of the agreement also signals India's commitment towards deepening ties with Asia Pacific through its Act East Policy," CII President Vikram Kirloskar said.
The review offers India an opportunity to seek greater market access in products it is competitive in, he added.
ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. RSN HRS