The recently signed free trade agreement (FTA) in services and investments between India and the 10-member Association of Southeast Asian Nations (Asean) will provide greater market access for Indian professionals and service providers in the regional grouping, feel India Inc.
"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," Sidharth Birla, president, Federation of Indian Chambers of Commerce and Industry said.
The agreement was signed Monday. It could not be signed at the India-ASEAN Economic Ministers meeting in Myanmar last month as Commerce Minister Nirmala Sitharaman could not attend owing to other engagements.
India and the ASEAN already have an FTA on goods that was implemented in 2011. The two sides had finalised the FTA in services and investments during the ASEAN-India Commemorative Summit in December 2012.
The FTA in services and investment, when implemented, is expected to facilitate the temporary movement of business people, including contractual service suppliers and independent professionals in accounting, architecture, engineering services, medical and dental, nursing and pharmacy, computer services and management consulting.
"Asean's share of global services trade has been rising over the past decade or so, moving up from 4.6 percent in 2000 to around 8 percent in 2012. Asean 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 (IT-enabled services)," Birla added.
