India's FTA with ASEAN to help service providers gain higher market access

New Delhi: FTA with 10-member ASEAN will help Indian service providers and professionals gain higher market access as the region provides substantial opportunitiesto India in sectors, including healthcare, accountancy, telecom and IT, among others, Ficci said today.

India has signed the free trade agreement (FTA) in services and investments with 10-member ASEAN, paving the way for freer movement of professionals and further opening opportunities for investments, an official said yesterday.

[caption id=“attachment_75562” align=“alignleft” width=“380”]  Representational image: Reuters[/caption]

“It will supplement the India-ASEAN FTA in goods and help in getting greater market access for India’s professionals and service providers in the 10-member block. We are happy that an annexure on movement of natural persons has been included in the agreement, which will benefit our professionals,” Ficci President Sidharth Birla said.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

The country implemented FTA in goods with the Association of South East Asian Nations (ASEAN) in 2011.

“ASEAN’s share of global services trade has been rising over the past decade or so, moving up from 4.6 per cent in 2000 to around 8 per cent in 2012. ASEAN’s import of services stood at over $306 billion in 2012 and from this perspective it offers substantial market opportunities for India in several sectors including health-care, accountancy, telecom and business services besides IT and ITeS,” Birla pointed out.

Nine out of 10 ASEAN countries have signed the pact, except Philippines, which is completing its domestic procedure and is expected to sign soon.

Signing of the two pacts – FTA in services and investments – were scheduled during the India-ASEAN Economic Ministers meeting in Myanmar last month.

But the meeting was postponed as Commerce and Industry Minister Nirmala Sitharaman was not able to attend the meet due to domestic compulsions.

India had proposed circulation process for signing the pact with ASEAN.

Under the circulation process, each member will separately sign the agreement and it will become effective only after the last member signs the pact.

PTI