India has signed an agreement on investment and freer trade in services with the Association of Southeast Asian Nations (ASEAN). Earlier, it had signed a similar agreement on goods trade. The two agreements will help India integrate better with the booming economies of Southeast Asia. If the agreement on goods trade has not seen a spurt in exports to ASEAN countries, it only means that India has not taken advantage of the opportunities it presents. The manufacturing sector has not been in the pink of health so much so that it has been a laggard pulling down the overall growth rate. Reforms which would facilitate growth in manufacturing are urgently called for.

India is in a much better position to take advantage of the agreement on trade in services. It has a strong presence in the global services sector and one of the largest number of professionals in IT, engineering, medical and management services. There are thousands of companies providing professional services to firms in Europe and the US. A large number of Indians are also employed in multinational firms, be it in IT, financial management and manufacturing. Some have reached the top positions in such companies. Not even the sky is the limit for the Indian service providers as the country has a strong presence in the exploration of outer space.

The agreement will enable young Indian professionals to find jobs in ASEAN nations where job opportunities are large and commensurate with their economic growth. Indian companies specialising in providing services will have to study the countries' special needs and show their ability to address them. Most such companies have been attuned to addressing the needs of European and American firms. They should know the Southeast Asian markets better. They will also have to adapt their business systems to suit new requirements. All this suggests reforms in both manufacturing and services so that India doesn't remain a spectator but an active player in Southeast Asia.

By The New Indian Express

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