Avenues for India's trade relations with ASEAN

ASEAN countries undoubtedly offer better avenues for India but advanced countries like the U.S.A., U.K., Japan, Germany, France etc. have been influencing ASEAN in a variety of ways due to their dynamic marketing strategy, latest technology, excellent after sale service, better quality of products at cheap rates etc. India's position on all these counts is comparatively poor. This however does not mean that it can not be improved upon. In additions, the following broad suggestions, if implemented earnestly, can yield viable results.
Existing trade agreements between India and ASEAN countries should be reviewed from time to time to meet new challenges and new trade agreements be negotiated. Our government should enter into technical collaboration agreements with ASEAN countries, which will hopefully enlarge the frontiers of our trade in this region.
In order to acquaint the customers of ASEAN countries with our products and their quality, to explore market potential and also to promote sales, teams of exports should periodically visit these countries. Such teams maybe drawn from specialised institutions like National Small Scale Industry Corporation (NSIC), Directorate General of Trade and Development (DGTD). Indian Institute of Foreign Trade (IIFT), Federation, Of Indian export Organisation (FIEO) etc. The government of India should also invite delegations from ASEAN countries to study the investment prospects in areas where these countries require India's assistance and co-operation. Local chambers of Commerce and Industries should also send their delegations to explore trade opportunities and invite members from ASEAN countries. Such visits by government officials and representatives of industries may intensify the consumers interest in Indian products. It may also give Indian exporters feedback on prevalent conditions and thus help in tapping the ASEAN market and successfully facing competitions from abroad.
Most foreign suppliers have established offices in ASEAN countries in order to tackle day to day problems. Indian exporters have no such arrangements. Better if they open offices at central places like Singapore. It will enable local importers to make direct contacts with Indian exporters or their officials whenever there arises any problem or dispute. This will develop better support as well between the importers and go a long way towards building long term relationship between them.
The government of India should also review the credit requirement of importing countries and provide a more liberal line of credit on softer and competitive terms. By extending necessary credit, India can obtain many more reputed contracts for the supply of capital goods, establishment of joint ventures and turnkey projects and may also boost up her trade prospects. EXIM bank (Export-Import Bank) should explore the possibility of offering credit at much lower rates, than or at least at par with what is offered by other rival countries. Of course there should be some follow-up action to ensure that the credit thus given is properly utilized.
The Indian government should, do the best of its capacity, provide financial assistance for the economic development of ASEAN countries and thus earn their good will which may in the long run prove helpful in opening new avenues for the export of Indian products. This is all the more imperative because Japan, the U.S.A. and other leading suppliers of this region have been influencing directly or indirectly the economy of the AEAN region through financial assistance in the form of capital goods and even cash. Surely India can not afford such assistance in a big way. But why not take a modest step even if big strides are not possible?
Opening up of branches of Indian banks and providing credit facilities to buyers can also assist in expanding India's trade in the region. A rational credit policy is absolutely essential to make a dent in the AEAN markets.
In case of capital goods and equipments, Indian exporters have to face stiff competition with other rival suppliers. To stand that India should provide guarantee and after sale service. Periodic after sale service is appreciated and ensures consumers satisfaction. Free availability of spare parts at limited level may also be helpful in satisfying consumers. Standard guarantee is generally extended for a period of six months in case of cheap variety products and one year in case of sophisticated machines. Guarantee period is often viewed as a pointer to the quality of a product. Why not increase it?
Interrupted shipping facilities coupled with high freight charges have been adversely affecting Indo-ASEAN trade. Regular shipping services needs be provided on a group or by impressing upon Indian shipping companies the necessity and desirability of quick and prompt transportation. The tendency of increasing freight charges should also be contained if not completely curbed.
Publicity f Indian products in ASEAN countries is to say the least, unsatisfactory whereas rival suppliers (like Japan, Taiwan, the U.S.A. etc.) are very much alive to this aspect. They supply free of cost trade journals and magazines which acquaint consumers with their products and add a lot to their publicity. Periodic display of products arranged at prominent places in the host country with free literature and discount on sales are other means of trade promotion adopted by advanced countries. India should follow suit. At present only big concerns have their own news letters for disseminating information about their products. Our Government should organize trade fairs and buyer-seller conferences. Help may be sought from specialised agencies like Trade Fair Authority of India (TFAI), Trade Development Authority (TDA), India Institute of Foreign Trade (IIFT), Federation of Indian Export Organisation (FIEO) Export Promotion Councils (EPCS). The existing Export Promotion Councils have to be reorganized and their activities should be coordinated so as to make their functioning more effective.
Efficient communication net work also serves as an assets. Communication system should also be improved.
Proper wares housing facilities are a must for trade expansion. Singapore is ideally suited for this purpose. Export task should be assigned to such expert organisations as are willing to work as agents for the distribution of Indian goods and also for arranging warehousing facilities for them.
Indian products are often costlier than their counterparts from other countries. Naturally they fail to compete in the international market. Most of the units are in small sector. They fail to achiever the economics of scale. This results in high cost of production. It is therefore suggested that only economic or optimal units should be set up so that the economics of scale may be achieved. The DGTD and Development Commissioner of Small Scale Industries should work out and implement effective strategies.
Products in order to be acceptable should be modified according to the latest trends prevalent in the market. Most consumers go in for latest products. Our export industries should be modernized and made more efficient so that their products may find a ready market abroad.
Most consumers in ASEAN countries are brand conscious Indian exporters must propagate the uniqueness of their products and create confidence for their quality and brand as Japan, Hong Kong, Taiwan, the U.S.A. and Germany are doing successfully.
Many importers of ASEAN region have complained that in many cases consignments from India do not match with the samples shown to them. Supplyof sub standard products has affected our trade adversely. To check such malpractices a regulatory channel should be introduced. The quality and the pre-shipment inspection procedures at home should be tightened so that no leeway is given to exporters for exporting sub standards goods. Secondly, the Ministry of commerce should take servers action against those resorting to such unhealthy practices. It takes thousands of exporters to build a market whereas one is enough to ruin goodwill and the market Thirdly, it is advisable that Indian exporters get their products approved by the quality approval organisations working in ASEAN countries so that better patronage can be expected from consumers.
The quality and also the style of packing of Indian goods should be improved so that the products may be displayed well on the shop counter and attract consumers.