Sunday, September 20, 2009

India, ASEAN to start talks on opening services trade soon

New Delhi, Sep 20: After signing a Free Trade Agreement that will eventually lead to duty-free commerce for bulk of the trade, India and the 10-nation ASEAN bloc are set to start talks for opening the crucial services sector.

“Negotiations for the free trade pact (between India and ASEAN) on services sector will begin soon,” Ambassador of Thailand Krit Kraichitti told. He, however, said given the complex nature of issues involved among India and 10 countries of Southeast Asia, it would take about two years for the negotiations to conclude. Services sector is of key interest to Indian economy as it contributes over 55 per cent to the GDP. It is also emerging as an important area for export earnings for the country. But the sector faces hurdles such as harsh domestic regulations, including those relating to visa, and the complex tax regime.

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