Other BriefingsThe Future of ASEAN-India Trade Looks Bright
Trade between ASEAN and India has seen strong growth over recent years. In 2014, total trade amounted to US$77 billion, a significant increase over the US$44 billion seen during 2009-10. Over the past decade, bilateral trade has increased at an average annual rate of a blistering 23 percent.
A key factor for this rising tide of trade has been India’s “Act East” policy, which has reaffirmed India’s plans to engage more substantially with the economies of its Southeast Asian neighbors. An additional reason, as pointed out by Indian External Affairs (East), Secretary Anil Wadhwa, has been the ASEAN-India Trade in Goods Agreement, which was signed in 2010.
Secretary Anil also hailed the new policy of foreign direct investment (FDI) instituted by Prime Minister Narendra Modi, which has opened up a range of investment opportunities in India, particularly in the services sector.
RELATED: Dezan Shira & Associates’ Pre-Investment and Entry Strategy Advisory
In addition to the abovementioned, the Indian government has instituted a range of programs intended to make the country a more attractive investment destination to foreign countries, such as those in the ASEAN region. These include:
- Facilitation of investment and innovation
- Skills development
- Building best-in-class manufacturing infrastructure for automobile, component, aviation, biotechnology, logistics, and mining
While many of the countries in ASEAN are playing an increasingly important role vis-à-vis trade with India, three of India’s key Southeast Asian trade partners are Singapore, Vietnam, and Indonesia. Singapore accounted for around 26 percent (~US$24.57 billion) of India’s trade with ASEAN in the 2013-14 period. The city-state imported US$7.1 billion worth of products from India in 2014.
Indonesia is another key market for India, with a 2014 bilateral trade of US$20 billion. Additionally, Indonesia signed a double taxation agreement with India in 2012; this has led to a notable increase in trade between the two countries. Bilateral trade between Vietnam and India in 2013-14 was worth US$8.03 billion, a number that is expected to grow to US$15 billion by 2020 as a result of official development plans from both governments.
RELATED: Indonesia’s Economy Struggles to find its Footing
In a further optimistic sign for future bilateral trade between ASEAN and India, business optimism has been rising throughout Southeast Asia. It is expected that this trend will help further fuel FDI into the region.
ASEAN is increasingly proving itself to be a key economic player in the region as well as globally. With its large and fast growing economy – the region saw a combined US$2.3 trillion in total GDP in 2014 – as well as its numerous beneficial trade and regulatory agreements with countries around the world, ASEAN is set to be a key global market and investment hub.
To view our in-depth library of ASEAN’s treaties with India, as well as other countries, please see here.
|
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email asean@dezshira.com or visit www.dezshira.com. Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight. |
Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.
An Introduction to Tax Treaties Throughout Asia
In this issue of Asia Briefing Magazine, we take a look at the various types of trade and tax treaties that exist between Asian nations. These include bilateral investment treaties, double tax treaties and free trade agreements – all of which directly affect businesses operating in Asia.
The 2015 Asia Tax Comparator
In this issue, we compare and contrast the most relevant tax laws applicable for businesses with a presence in Asia. We analyze the different tax rates of 13 jurisdictions in the region, including India, China, Hong Kong, and the 10 member states of ASEAN. We also take a look at some of the most important compliance issues that businesses should be aware of, and conclude by discussing some of the most important tax and finance concerns companies will face when entering Asia.
