Complementarities in Production and Trade among ASEAN Countries
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The share of India’s export to WANA (West Asia and North Africa) is 22.5 percent, followed by EU (European Union) 21.2 percent and North America 15.5 Percent, ASEAN (Association of South East Asian Nations) 10.3 percent, South Asia 4.6 percent and Latin America 3.3 percent (Government of India, Economic survey 2010-11). As compared to other blocs (WANA, North America and EU) the share of India’s exports to ASEAN is low. Thus there is need to examine the reasons for low trade of India with ASEAN nations. In the light of this, the present paper has been undertaken to study competitiveness or complementarities in production and trade among India and ASEAN nations and to study the pattern of intra -regional trade of ASEAN nations. There is substantial range of existing complementarities between ASEAN and India. As most of the ASEAN countries are heavily dependent on imported drugs and health care equipments, therefore India could also cooperate with ASEAN in pharmaceutical and health care service sectors. India Shares Sea boundaries with three ASEAN countries namely Indonesia, Myanmar and Thailand. Thus in terms of transport cost, India has benefit to trade with ASEAN. So, India should look at expanding sea transport linkages to promote trade, tourism and other economic activities.
JournaL of Global economy