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DHL aims to link Indian businesses with ASEAN economic community

Press Trust of India  |  Singapore 

Global group is working to link Indian companies with businesses in the ASEAN Economic Community (AEC) to strengthen India's economic relations with Southeast Asian markets.

is a key market for us. We will help our clients there to work their way into the AEC, which will in turn be a springboard to the markets in line with New Delhi's Act East' policy, said Alfred Goh, President, and Head, and Innovation Asia Pacific, DHL.

In 2000-2017, there was over USD 514.7 billion of ASEAN investment flow into In 2015-16, India's exports to ASEAN were valued at USD 25 billion, with imports at USD 40.6 billion.

We want to capitalise on our presence in these high-growth markets with a combined population of 1.8 billion people, and partner businesses on growing cross-border commerce and trade, he said.

DHL is already investing millions of dollars in India, increasing hubs and warehouses, keeping up with projected demand for its services following the successful implementation of the goods and services tax (GST).

Having been part of the GST process development from an early stage, we now have a very good understanding of the new single tax regime, which India-bound foreign investors are trying to learn, he said.

DHL is well versed in the business cultures of both and We know the tax incentives, options and business locations in ASEAN, pointed out Goh.

India is industrialising, with an emphasis on export-oriented manufacturing, observed Goh, adding that ASEAN is also seeing development zones for global trade and commerce that would fit with Indian businesses' operations.

He highlighted India's continued port and airport development that will support exports, and that future shipment volumes will be transshipped into the markets through breakbulk.

India's population of 1.3 billion and ASEAN's 638 million make the two territories the largest trading zones with bilateral and multi-lateral commitments under various India-ASEAN economic pacts such as the Area (AIFTA), which came into effect in 2010.

It drove further growth in two-way trade between India and ASEAN as of 2012, this figure stood at USD 79.86 billion, surpassing its initial USD 70 billion target.

With India's Act East policy and the Indian and ASEAN governments goals of connecting the South and Southeast Asian markets, the existence of a platform will allow India companies to have easier access to the Southeast Asian zones.

The newly set-up (GCOE) in Iskandar Malaysia by DHL and will provide supply chain consultancy services, and support businesses to design solutions specific to key industries including automotive, energy, engineering & manufacturing, life sciences & and technology.

This GCOE can connect companies in India with the government and key stakeholders to strengthen the value proposition in operating in countries like Iskandar Malaysia which will drive bilateral trade further, he said, citing examples of India-ASEAN connectivity.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 11:45 IST