(MENAFN- KNN India) The Commerce Ministry is proposing investments in Cambodia, Laos, Myanmar, Vietnam (CLMV) through a project development fund and will send it to the Union Cabinet for clearance within a few weeks.
This was informed by Commerce Secretary, Rita Teaotia last week at the launch of 'India's Strategy for Economic Integration with CLMV', a Report brought out by the Ministry of Commerce and Industry which provides a rationale for establishing commercial and economic linkages between India and CLMV region.
The government seeks to put in place a project development company, special purpose vehicles and a project development fund with a capital of Rs 500 crore to help Indian businesses explore opportunities in the CLMV region.
In the Union Budget for 2015-16, Finance Minister, Arun Jaitley stated that "the 'Act East' policy of the government endeavours to cultivate extensive economic and strategic relations in Southeast Asia."
The Report of the Ministry observed that one of the most important ingredients of setting up business is skill availability and there exists considerable skill complementarities between India and CLMV in terms of skill availability in India matched with unavailability in CLMV.
It is also desirable to integrate the employment-intensive SMEs with regional value chains through India-CLMV integration and to facilitate this process there is a need to increase the presence of Indian banks there.
One of the major thrusts in the Report includes creating an India-CLMV convergence in the regional trade negotiations and alignment of India's commercial interests with CLMV's policy focus.
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