Phenomenal growth in ecommerce

India and ASEAN have enhanced their bilateral trade target to US$200 billion but removal of traffic barrier is crucial to achieve this, said Minister of State for Commerce & Industry, C R Chaudhary.

India and ASEAN have emerged as economically strong region growing at steady pace despite global slowdowns, he told the 4th India ASEAN Expo and Summit 2019 in New Delhi on 23 Feb 2019.

India-ASEAN bilateral trade has increased to US$81.3 billion in 2017–18 from US$56.2 billion in 2010–11 registering an impressive growth of 16.04%, he said.

He said India and ASEAN with over US$5 trillion combined economy present innumerable opportunities in multiple sectors for investors across the globe.

Chaudhary underlined India’s trade relationship with ASEAN as a key pillar of its regional policy and the foundation of its Act East Policy which is further reinforced by increase in trade in goods and services and investment agreements.

India’s economy is forecast to expand by 7.5% during the 2019-20 and remain the fastest growing major economy in a world of slowing growth. ASEAN economy is expected to grow at 4.7% in 2019.

Both India and ASEAN possess vibrant Small and Medium Enterprise (SME) ecosystem, booming technology-based startups and business friendly policies.

Both the regions are marching on the right growth path, he noted.

The Minister further said that the services sector remains the key driver of India’s economic growth and its share in the global exports which grew from 3.1% in 2014 to 3.47% in 2017. It is expected to reach 4.2% by 2022, according to Chaudhary.

The services sector is poised to be a game changer in India’s growth story and is expected to achieve US$3 billon size out of US$5 trillion Indian economy by 2025.

Chaudhary informed the gathering that India is exporter of software services and is also becoming a medical tourist destination because of high quality and affordable medical services.

The Minister said the Government India has identified 12 champion’ services sectors, including IT, tourism and hospitality, for realizing their potential.

Champions sector initiative will up a great window of opportunity for technology and investment collaboration between ASEAN and India.

“Demand for ecommerce is expected to grow phenomenally in view of high penetration of mobile telephone services,” said the Minister. fiinews.com