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SMEs to benefit from the Indo –ASEAN FTA

Indian SMEs get easy acess to ASEAN due to FTA

The Indian SMEs, exporters and trade organisations can establish their footprints in the countries of the Association of South East Asian Nations (ASEAN) without hurdles because the Free Trade Agreement (FTA) between India and ASEAN is set to become effective with the other seven associate countries are set to sign the pact by August 2010. The Indo-ASEAN pact was inked in August 2009 and it has been implemented by only Singapore, Thailand and Malaysia out of the 10 member bloc so far. The implementation of the same by the remaining ASEAN member countries like Cambodia, Laos, Myanmar, Brunei Darussalam, Indonesia, the Phillipines and Vietnam will help Indian SMEs to conduct trade dealings with these countries without facing barrier. The free trade pact with these countries will help to lessen the financial burden of Indian SMEs by easing duties. The ASEAN member countries especially those engaged in trading of machinery, steel and oilcake are expected to be benefited as the FTA reduces duties on such goods.
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