The new Industrial Policy being framed for the development of industries in the northeast would prove catalytic to the trade with southeast Asian nations, according to the government.
The department-related Parliamentary Standing Committee on Commerce, in its report on trade with Association of South East Asian Nations (ASEAN), said that the Secretary, Department of Industrial Policy and Promotion (DIPP) had informed it that the department would work with ASEAN nations to improve FDI inflow. “... it would be done through... Business Leaders’ Forums, CEOs’ forums and Invest India and by further intensifying present efforts in this direction. The Committee was briefed about the new Industrial Policy being framed for the development of industries in the North East Region and how it would prove catalytic to the trade with ASEAN,” the panel.
Of the $56 billion of FDI that came in in 2000-2017 from ASEAN countries, $54 billion was from Singapore. “[Secretary, DIPP] attributed reasons for the bulk investment to the Double Tax Avoidance Agreement between India and Singapore.”However, the Agreement has now been renegotiated and it is hoped that the skewed investment would be addressed.” The Committee said it was also told that outbound FDI from India to ASEAN countries is a substantial amount of $52 billion.
