India has called for starting formal negotiations by WTO members to reform the dispute settlement body of the World Trade Organisation, as the present informal deliberations are creating hindrance for several nations to participate in the talks, an official said. The official added that formal talks on the subject can help in arriving at some kind of consensus by the 13th ministerial conference (MC), the highest decision making body of the WTO, in Abu Dhabi in February next year.

 

The issue came up for discussion during a recent meeting of senior officials of WTO members in Geneva last week. Certain countries flagged their concerns on the informal system of talks.

 

'We have to formalise this process as soon as possible. India stated that if you want to maintain the WTO's credibility, we need to talk on this,' the official said.

 

WTO's dispute settlement body (DSB) is one of the important arms of the 164-member Geneva-based body. Besides monitoring global exports and imports related rules, it adjudicates trade disputes between the member countries.

 

'The US has started engaging in DSB reforms, but in an informal setting. In this setting, not all members get the opportunity to talk. There are no interpretation facilities in those informal meetings,' the official said.

 

Many WTO member countries have one or two delegates only in Geneva. So, they get busy in different meetings like general council and because of that, they are not able to participate in the deliberations on DSB reforms.

 

'So, there are some concerns. It was flagged in the break-away sessions' meeting in Geneva recently. The sense was that as soon as possible, the negotiations should happen in a formal setting. The whole discussion should come under the Committee on DSB. At present, it is happening in an informal fashion,' the official added.

 

'The talks should be formalised so that all members can participate in that discussion and contribute their views. India wants the talks to happen in a formal way,' the official, who did not wish to be named, said.

 

Normally in the WTO, talks through a formal process involves submissions of papers on the subject for discussions among all the members.

 

The official, however, exuded confidence that the way the US is engaging on the subject, it looks like they will do something like coming up with some formal text for discussion on the issue.

 

'The developed countries are talking about peripheral reforms, but our main ask is that there should be a two-tier system,' the official said.

 

Trade experts too said that all the members would have to work together on this.

 

Hi-Tech Gears Chairman Deep Kapuria said that the US' leadership is crucial for breaking the deadlock in WTO, which is facing multiple challenges.

 

'But the question is, how far is the US willing to translate this positive intent into some meaningful action, where it can work towards building consensus on WTO reform agenda and more importantly on reigniting the functioning of DSB. The US has been repeatedly blocking any proposed decision to commence the appointment of Appellate Body members,' Kapuria said.

 

There are two main ways to settle a dispute once a complaint has been filed in the WTO - the countries find a mutually agreed solution, particularly during the phase of bilateral consultations; and through adjudication which includes ruling by a panel and if not satisfied, challenging that ruling at the appellate body.

 

The appellate body is the apex institution to adjudicate disputes.

 

Smooth functioning of the WTO's dispute settlement mechanism hit a roadblock, when the US blocked appointments of members in the appellate body (AB). Though the AB stopped functioning from December 10, 2019, the panels are still working.

 

Since December 2019, over 20 appeals have been filed in the AB.

 

According to experts, the US wants to weaken the two-tier system of the dispute settlement mechanism and they do not intend to restore the appellate body.

 

The US had earlier stated that over time, the despite settlement has become synonymous with litigation, which is prolonged, expensive and contentious.

 

Developing countries, on the other hand, are of the strong view that a two-tier system is fundamental for the smooth functioning of the dispute settlement mechanism.

 

Citing the US Trade Representative Katherine Tai's suggestions, Kapuria said that the US has three specific ideas to reform DSB and that include finding appropriate alternatives to litigation.

 

The alternatives include conciliation, and mediation; the panels be restricted to address only those matters which are necessary to resolve the dispute and resist the urge to pontificate; and no judicial overreach so that members could exercise their power to regulate domestic policies.

 

Malaysia External Trade Development Corporation (MATRADE), Malaysia's National Trade Promotion Agency is spearheading Export Acceleration Mission (EAM) to Mumbai, India from 30 Oct to 1 Nov 2023. The objective of the programme is to provide a networking platform as well as to build a business partnership between Malaysian and Indian business community.

 

The Export Acceleration Mission (EAM) is initiated by MATRADE in order to link Malaysian companies with foreign partners as well as encourage them to explore trade opportunities aboard. MATRADE will also organize the Export Acceleration Mission (EAM) to Chennai from 1 – 3 Nov 2023.

 

A total of nineteen (19) Malaysian companies under MATRADE from sectors such as food & beverage, IT business solutions, pharmaceuticals, oil & gas, services will be participating in the mission which aims to boost exports of Malaysian products and services in Maharashtra State and India generally.

 

During the mission, MATRADE through its Mumbai office will be coordinating business meetings with leading importers and buyers. Complementing this, programmes that have been arranged for the Malaysian companies include briefing on export opportunities in India by MATRADE Trade Consul in Mumbai and sharing experience on doing business in India from relevant association. Among programmes planned during the mission includes business meetings, visit and networking session. MATRADE encourages Indian businesses to meet with Malaysian companies to explore potential business opportunities.

 

According to Mr. Norman Dzulkarnain Nasri, Trade Consul (MATRADE), Consulate General of Malaysia in Mumbai, the trade relation between Malaysia and India always in good relations and has been a strong partner in India's growth story over the last few years. India is the 11th largest trading partner for Malaysia. In 2023 (Jan-Sept), the total trade between Malaysia and India amounted USD12.51 billion with the top trading products were Palm Oil & Palm Oil Based Agriculture Products, Electrical & electronic product, Chemicals & chemical product, Manufactures of Metal and Crude Petroleum.

 

The Trade Consul of MATRADE said that the country has always been a very important market and Malaysia's biggest trading partner in South Asia. In 2022, with two free trade agreements already implemented, ie. MICECA and AIFTA, Malaysia – India trade relations has grown rapidly from US$ 15.57 billion in 2018 to US$ 19.61 billion in 2022. Both countries are benefiting from the free trade agreement.

 

He also added that Malaysia and India can complement each other in terms of its trade engagements especially on trade agreements. Potential products that Malaysian company can explore in India are Fast Moving Consumer Goods (FMCG), Halal,

 

Processed Food, Healthy Products, Ready-to-eat Food, Medical Products, Medical related products, Pharmaceutical, Lifestyle Products, many others.

 

The Trade Section (MATRADE), Consulate General of Malaysia encourages Indian and Malaysian companies to leverage at their office in Mumbai. MATRADE also has another office in Chennai covers Southern and Eastern India.

 

Indian business community kindly contact MATRADE Mumbai at mumbai@matrade.gov.my to get more info about the programme or any other enquiries pertaining to Malaysian products and services.

 

Issued by Malaysia External Trade Development Corporation (MATRADE)

 

Follows us on Twitter@MATRADE, Instagram – matrade_hq and Facebook – MATRADE HQ

 

About Malaysia External Trade Development Corporation (MATRADE)

 

MATRADE's mission to promote Malaysian export has enabled many local companies to carve new frontiers in global markets. Today as we continue to put the spotlight on capable Malaysian companies on the international stage, we are helping make the phrase 'Made-In-Malaysia' synonymous with excellence, reliability, and trustworthiness. MATRADE has 46 overseas network that supports its HQ, located at Menara MATRADE, Jalan Sultan Haji Ahmad Shah, Kuala Lumpur, Malaysia. Its functions are:

 

• To promote, assist and develop Malaysia's external trade with particular emphasis on the export of manufactured and semi-manufactured products and services;

 

• To formulate and implement export marketing strategies and trade promotion activities to promote Malaysia's export;

 

• To undertake commercial intelligence and market research and create a comprehensive database of information for the improvement and development of Malaysia's trade;

 

• To organise training programmes to improve the international marketing skills of Malaysian exporters;

 

• To enhance and protect Malaysia's international trade investment abroad; and

 

• To promote, facilitate and assist in the services areas related to trade.

Finance Minister Nirmala Sitharaman on Monday said that customs authorities across the globe should share 'actionable' information among themselves to curb the network of illicit trade which is hurting the global economy.

 

She added that there is a need for intergovernmental cooperation to crack the masterminds behind smuggling networks else authorities will be able to catch small fishes only.

 

'I place a lot of emphasis on intergovernmental coop, along with WCO (World Customs Organisation), so that we are able to crack the brains behind it (smuggling), the masterminds behind it, with the help from local authorities and governments,' Sitharaman said in her address at Global Conference on Cooperation in Enforcement Matters.

 

The conference organised by the Directorate of Revenue Intelligence, aims at creating an information network and share information to block the international chain of illicit trade.

 

She added that exchange of information and global cooperation was one of the issues discussed during India’s G20 presidency and she proposed that global enforcement agencies must meet once in a year to discuss among themselves the measures to handle it.

 

'Networked groups think that small fries can be sacrificed, police or customs authorities can catch hold of this small fish, the larger fish, which is the brain behind, is never going to be caught,' Sitharaman added.

 

Sitharaman also said that the nature of smuggled or illegally traded goods has not changed over the last 50-60 years and it continues to be precious metals, narcotics, precious reserves from forest or marine life.

 

'So largely the goods which are illegally traded remain the same. There are no newer areas on which the customs authorities are baffled. If this is the way it is showing a trend over the decade, by now most of us should be fairly informed of who are the forces behind it.

 

Union Minister of State for Agriculture and Farmers’ Welfare Sushri Shobha Karandlaje inaugurated the International Workshop on Food Loss and Waste Prevention in South Asian Region today at New Delhi. The International Workshop on Food Loss and Waste Prevention in South Asian Region was organized jointly by The Indian Council of Agriculture Research and the Thünen Institute, Germany. Deputy Director General (NRM) - ICAR, Dr. SK Chaudhari, Research Director, Thünen Institute, Germany, Dr. Stefan Lange, Deputy Director General (Ag. Engg.) – ICAR, Dr. SN Jha and around 120 delegates from India, Bangladesh, Bhutan, France, Germany, Indonesia, Nepal, and Sri Lanka were present on the occasion.

 

In her address, MoS Sushri Shobha Karandlaje appreciated the efforts made by ICAR and Thünen Institute, Germany to address an important social and economic issue concerning both to the farmers and the consumers. She stated that approximately 3 billion tonnes of food go waste across the globe. She outlined the scale of problem of food loss and waste. She opined that the proven technologies and practices of developed as well as developing countries should be brought forward so that the losses and wastage across the globe could be reduced using methods acceptable to the society. She also emphasised that the social organizations need to play a vital role in spreading awareness among various stakeholders and also should practice the methods to minimise food waste. She also pointed out that loss of food is not only a direct loss to the consumers but also has bearings on environment and supporting economies.

 

Sushri Shobha Karandlaje said that south Asia a major producer as well as consumer of food and it is our moral responsibility as well as economic necessity to reduce the food loss and waste. She called to identify the primary reasons of food loss and waste; education and awareness among all the stakeholders; efficient harvest and storage; smart distribution; industry involvement; donation and food banks; innovation in food packaging; and consumer responsibility, etc. She emphasized that wasting food is a crime and exhorted all to teach our children the importance of not wasting food. She was hopeful that the three-days workshop would help us plan and act together to arrive at some meaningful policy.

 

Dr. Stefan Lange mentioned that mitigating and preventing food loss and food waste is the biggest and most effective lever to ensure that food reaches to the needy. He further informed that a 'Collaboration Initiative on Food Losses & Food Wastes' has been functioning to promote the global exchange of research results and practical experience in fighting food losses and waste. Government of India can play a vital role in influencing all neighbouring countries in initiating individual as well as collaborative efforts to curb food loss and waste.

 

Ms. Clementine O’Connor of United Nations Environment Programme, France appraised about food losses and waste metrics and its effect on sustainability of agriculture and environment. She pointed out that pandemic, climate change and wars also have serious bearing on food loss and waste. She emphasised for policy development to ensure learning and sharing of the best practices across the globe and to create awareness among consumers. She reminded that only a few years are left to achieve the sustainable development of goal 12.3 to reduce the food losses to half by 2030.

 

Dr. K Narsaiah, ADG (PE), ICAR made an introductory presentation on historical perspective of food losses and gave examples of indigenous methods for preventing food loss and waste practiced by various societies across the globe. All the delegates took a pledge during this session to prevent food loss and waste in families, offices, industries, society and communities.

 

DDG (NRM), Dr SK Chaudhari and Deputy Director General (Ag. Engg.) from ICAR, Dr. SN Jha welcomed all the guests and delegates and informed the house that Post-harvest losses and Food Waste varies among geographies in the world. It largely depends on the crops and commodities, duration of storage, climate, technological interventions, human behavior, traditions etc. During the G20-MACS held in Varanasi, April 2023; a bilateral meeting was held between India and Germany in which both the countries decided to organize a regional workshop to address the challenges of Food Loss and Waste understanding that despite the abundant agricultural production, a substantial amount of food is lost or wasted throughout the food supply chain, from production to consumption, and impacts food security and availability, environment, economy and the society; this hold higher significance for South Asian Region, which is a major food producer as well as consumer of food. He shared that around 74 million tonnes of food is lost in India every year, which, if saved, can make many people richer.

Norway will help fund India’s ‘Hunger Project’ and help strengthen women leaders to protect the environment and promote food security in Uttarakhand.

 

The duration of the project would be three years, until September 2026 with a budget of Rs.44.7 million, an official said.

 

The hunger project organizes capacity-building training for elected women representatives (EWRs) and federations, focusing on strengthening van panchayats (forest councils) which in turn will ensure food security and livelihood opportunities for marginalized households.

 

The programme will strengthen elected women’s leadership in gram panchayats so that they can play a pivotal role in conserving forests and natural resources, devise and adopt strategies to promote sustainable living, food security and collaborate with members of van panchayats and the local community, especially women.

 

The project will be implemented in 3 districts, 9 blocks, 172 gram panchayats and 145 van panchayats of Uttarakhand involving 900 EWRs for the protection of standing forests and nurturing their immediate environment that is crucial to the community’s livelihoods and food security.

 

Additionally, it will enhance awareness of local communities via 334 Jagrukh Manchs to effectively combat climate change risks collectively, the official informed.

 

The expected outcome of the project includes capacity building of elected women representatives (EWRs) and federations, an advanced environment, friendly development agendas in Panchayats, strengthening institutional processes to manage and conserve forest commons, mitigate climate risks, ensuring food security and livelihood opportunities for marginalised households, the official added.

 

Queries sent to spokespeople of the Norwegian Embassy in New Delhi and Indian ministries of finance, food & public distribution and climate change remained unanswered at press time.

 

The inter-governmental Panel Climate Change Fourth Assessment Report (2007) suggests that the Himalayan Eco-system is particularly at risk of a rise in global temperatures and one of the states in India that is most at risk is Uttarakhand, which is one of the most ecologically sensitive, fragile and climatically vulnerable states of the country. Over 70% of its geographical area is under forests and predominantly rural and dependent on natural ecosystems for their livelihoods and sustenance. Availability and access to clean water sources is a challenge with many natural springs drying up. Citizens in the project intervention area, especially the poor have experienced the impact of natural disasters and environmental degradation, but their knowledge and awareness of long-term impact is low. Most importantly, for women living in these areas in particular, the impact of climate change means more hardship. In the villages, women are also responsible for fetching safe drinking water, collecting fodder for animals and managing other natural resources.

 

The Hunger Project will leverage the Uttarakhand government’s priority of making sustainable development an important element in the state’s growth strategy. Furthermore, the overall objective and interventions will consider the climate and environment policy priorities and commitments of the Indian government. Adaptation to climate risks will be focused upon, aligned with the Indian government’s stand for COP28. With India assuming G20 presidency in 2023 the five priority areas of work identified by the group- two areas include women leadership at the grassroots and women and girls as change makers for climate resilient action are in sync with the overall proposed program objective and priorities. Interventions will focus on mitigating the impact of climate change on food security mainly addressing eroded livelihood opportunities, nutrition security and adverse health impacts

 

Similarly, the Government of Norway’s priority themes of gender, environment, climate change, conservation of forests and food security will be advanced in three years during the project.

India’s trade outreach is fast becoming the centrepiece of its deepening relationship with the Middle East. In particular, India’s relations with Saudi Arabia have seen an unprecedented growth in recent years, with a sharp rise in trade and investments. Saudi Arabia’s abundance of natural resources, economic and cultural influence, its critical location in the Middle East and connectivity complement India’s capability to provide cost-effective technologies, human resources, capital and marketing opportunities. India’s growing economy, digital public infrastructure and institutional stability have made it a preferred trade and investment destination. 

 

Saudi Arabia is pursuing an economic diversification strategy beyond hydrocarbons to newer domains exploring innovative investment tools and new collaborations from across the world. India was the fourth country after the UK, France and China to partner with the Saudis to establish a strategic partnership council in 2019. It is aimed at taking forward collaborations on economy and investments, apart from social, political and security issues.

 

Saudi Arabia contributes to India’s energy security and India supports Saudi Arabia’s food security. India imports 86 percent of its oil requirement and the Middle East accounts for over 60 percent of it. On the other hand, Saudi Arabia imports large parts of its food needs and manufactured goods including textiles. Therefore, the bilateral relationship is highly symbiotic. 

 

The Future Investment Initiative (FII), established in October 2019, has grown as a global platform for businesses and countries to identify areas to innovate in for sustainable and inclusive growth. The seventh edition of the FII, held during October 24-25 in Riyadh, had the theme ‘the New Compass’. It looked at the emerging world economic order, provided a platform for dialogue between international businesses and leaders, and for trade and investment promotion. 

 

Among the leaders, Piyush Goyal — Union minister holding the commerce, industry, textile, food and consumer affairs portfolios — was instrumental in forging trade and investment linkages between the two countries. Saudi Arabia is interested in Indian collaborations on lab-grown diamonds. Earlier this week, Saudi jewellery firm Dana Al-Alami partnered with Indian firm Green Lab Diamonds. Earlier this month, India and Saudi Arabia committed to exchanging electricity during peak hours, co-producing green hydrogen and renewable energy, and jointly establishing sustainable and resilient supply chains.

 

The emerging multi-polar world faces a number of worries — the Israel-Palestine conflict, Russia-Ukraine war, US-China tensions, post-pandemic economic woes, and impending fears of a worldwide recession. In this scenario, an effective bilateral institutional mechanism for trade and investment between India and Saudi Arabia would be mutually synergistic and provide a much-needed economic boost to both. 

 

India’s credibility as a trade and investment destination received a major boost from a series of events hosted by India during its G20 presidency. Saudi Arabia is critical to establishing the ambitious new trade route — the India-Middle East-Europe Corridor — that was part of the G20 summit declaration. In recent years, structural reforms in Saudi Arabia on foreign investment, corporate governance and capital markets have increased Indian opportunities. India provides immense cost-effective opportunities for Saudi businesses in the fields of artificial intelligence, robotics, education, health and sustainability.

 

India’s trade with the Arab world has touched an all-time high of $240 billion. India is Saudi Arabia’s second largest trading partner, with bilateral trade reaching all time high of $52.75 billion in 2022-23. India’s major exports to Saudi Arabia are motor vehicles, petroleum products, rice, organic chemicals, copper products, telecom equipment, buffalo meat and aluminium products; it imports crude petroleum, fertilisers, raw plastic, and organic and inorganic chemicals. 

 

Despite the Gulf region being home to the largest Indian community abroad, its enormous economic potential remains underexplored. The six countries of the Gulf Cooperation Council (GCC) — the United Arab Emirates, Saudi Arabia, Oman, Qatar, Kuwait and Bahrain — host over 8.8 million non-resident Indians, constituting over 66 percent of all NRIs. According to the Reserve Bank, the GCC accounted for about 30 percent of all foreign inward remittances in 2020-21. The large Indian diaspora in the Gulf, present at every level from the grassroots to top management, is keen to engage with Indian firms. This is an asset waiting to be tapped to its fullest potential.

 

Riyadh eyeing diversification beyond hydrocarbons

Saudi Arabia is pursuing an economic diversification strategy beyond hydrocarbons to newer domains exploring innovative investment tools and new collaborations from across the world. India was the fourth country after the UK, France and China to partner with the Saudis to establish a strategic partnership council in 2019.

Fruits and vegetable exporters are agitated over the delay in issuing Nipah-free certification to Calicut International Airport by the Kerala Government after the virus was brought under control.

 

The exporters along with two Parliament members from Kozhikode urged the State government to issue Nipah free certificate to the airport which would help re-start the shipments that was disrupted following the outbreak the virus in September. They pointed out that the authorities have issued Nipah-free certificates to Kochi and Kannur airports after the easing of the restrictions for exports.

 

Impending crisis

MK Raghavan, MP from Kozhikode has sent a letter to the State Industries Minister P Rajeeve seeking his intervention in the matter. He urged the Minister to help avert an impending crisis being faced by farmers, traders and those working in the export sector. According to him, it was an unjustified discrimination against Calicut Airport for not issuing Nipah free certification especially when the Kannur airport which is close to the virus outbreak area has been given such certification.

 

Another Parliament member, Abdussamad Samadani, in a message to the State Health Minister Veena George said the absence of Nipah free certificate to the airport could make overseas buyers to look at other destinations for their shipments. It is pointed out that around 50 tonnes of fruits and vegetables were shipped through Calicut Airport on a daily basis.

 

Currently, shippers are depending on Kochi airport for getting required clearance certificates which, according to the exporters fraternity, is time-consuming and leading to cancellation of export orders.

 

The Calicut Airport authorities have also taken up the matter with the Principal Secretary, requesting him to issue Nipah-free certification at par with Kochi and Kannur airports. The exporters are having seasonal additional orders due to the ensuing festivals which are also likely to be affected due to the non-declaration of Calicut Airport as Nipah-free. The outbound cargo is mainly sourced from the border districts of Tamil Nadu and Karnataka.

Yesterday, India imposed a minimum export price of $800 per ton for onions, much higher than the prices at which importers were buying. The export price will remain effective until December 31 this year, said a notification issued by India's Directorate General of Foreign Trade. The move is apparently to discourage exports and contain the price in the Indian market.

 

Importers were quoting $150-$205 per ton of Indian onions before the minimum export price was imposed, said Dipankar Ghosh, Organising Secretary of the Clearing and Forwarding Agents Association in Bhomra, a land port in the southwest region bordering India. Import price will increase by over four times, and landing price of the bulbs will be over Tk 100 a kg at the port, he said.

 

The curb on export by the Indian authority comes two and a half months after it slapped 40 percent duty on the export of onions to tame escalating prices in its domestic market. The move is likely to fuel a price hike of onions in Bangladesh, which meets a portion of its demand through imports from mostly India.

The Ministry of Commerce of commerce issued a notification in this regard on Monday (30 October.)

 

Interested importers are requested to apply to the Ministry of Commerce for permission to import potatoes, it added.

 

Potato prices have soared in recent times. The price of potatoes has risen to Tk60-70 per kg this week, Tk10 more than last week, despite the government's fixed rate of Tk35-36 per kg.

 

The commerce ministry on 14 September fixed the maximum retail prices of potatoes at Tk35-36 per kg. The market analysis of the Trading Corporation of Bangladesh (TCB) indicates that after price regulations, the price of potatoes had decreased to Tk45.

 

However, within the past month, potato prices have surged by 12%.

 

According to the Department of Agriculture Extension, the annual demand for potatoes in the country is 85-90 lakh tonnes. In the fiscal year 2022-23, 1.12 crore tonnes of potatoes have been produced in the country.

 

Despite concerns raised by the Cold Storage Association regarding reduced potato production, the government has not acknowledged this issue.

 

'Even though the government has provided information indicating a potato production of over 10 million tonnes this year, potato production has not exceeded 8-8.5 million tonnes in reality,' said Mostafa Azad Choudhury, president of the Cold Storage Association.

 

Earlier on 7 October, the Ministry of Agriculture gave an opinion opposing the plan of importing potatoes aiming to control prices in the domestic market.

 

As a result, the Ministry of Commerce could not allow businessmen to import potatoes back then.

India and Vietnam have shown a steady growth pattern and there is immense scope for investments and trade between both the countries, Indian envoy has said.

 

As both the countries are growing rapidly, the thrust areas have been emphasised on infrastructure, manufacturing and connectivity for increased bilateral trade and investments between India and Vietnam, Ambassador Sandeep Arya told PTI at the North East India Festival (NEIF) being held.

 

A steady growth pattern has been witnessed in the trade between the two countries with $15 billion in total trade, out of which India exports about seven billion dollars and Vietnam about eight billion dollars, he pointed out.

 

Foreign Direct Investments (FDI) have also grown by about eight times during the last ten years while the export growth of domestic enterprises was three times during the same period between the two countries.

 

'There is immense potential for growth of trade and investments between the two countries and is particularly relevant for North Eastern states,' the ambassador said.

 

The most important factor for increasing trade relations between Vietnam and North East India is civil aviation connectivity, he said.

 

'Guwahati is already among the approved list of airports and as such the Government of India's approval is not really necessary to start operations in the sector.  Any airline that wants to fly to Guwahati does not require specific approval which is required for many other airports,' Arya said.

 

There is a group of airports as part of the ASEAN arrangement and there is a very strong case for air connectivity between Vietnam and North East India, he added.

 

From the North Eastern states there are nearby ports in Myanmar, Bangladesh and Kolkata in India which presents it as an ideal area, providing direct shipping services.

 

Besides, the extension of the India Myanmar Thailand (IMT) Highway and multimodal transport through Myanmar also presents a strong case for trade promotion and investment opportunities, he added.

 

There is also immense scope for investments in the digital connectivity sector and India is doing fairly well in this technology, Arya said.

 

'UPI is something we are working on to have digital connectivity for cross-border payments and we are talking to the State Bank of Vietnam and Reserve Bank of India in this regard,' the ambassador said.

 

Vietnam's manufacturing sector has a very important role to play and its electronics goods sector comprises a major sector of their exports.

 

The garment sector is also an area where Vietnam is growing very rapidly and there is a lot of opportunity in yarn, and cotton among others, Arya said.

 

Gems, jewellery, handicrafts, textiles, bamboo and agro-based products are some of the areas for investment for enhancing India's exports to Vietnam, he said.

 

'The Indian embassy in Hanoi and the Consulate here is focussing on investment mapping with India in electronics, manufacturing, power and electrical equipment, machinery, auto-components, agriculture products, food processing in aquatic, dairy and fruits, traditional medicine and herbs, tourism infrastructure, garments, footwear among others for export to Vietnam,' the ambassador said.

 

Vietnam is, therefore, an excellent opportunity when the NE states are looking towards Southeast Asia, he added.

 

Tourism is a huge strength of Vietnam and there are immense possibilities in this sector in the North East as well, Arya pointed out.

 

'It was an excellent idea to hold the North East India Festival (NEIF) in Vietnam which is a rapidly growing economy with a lot of trade happening with various countries, immense investment opportunities, value and supply chain linkages, strong growth in the field of tourism, cultural exchanges and overall standing of the country is changing rapidly,' Arya said.

 

The Festival brought in more collaboration and opened vistas for more exchanges in culture, traditions and opportunities for the North Eastern states of India, the ambassador added.

 

The third edition of the three-day North East India Festival will conclude on Sunday.