SUM MANET
The government of India yesterday approved the creation of a project development fund of about $75 million to help Indian firms invest in Cambodia, Laos, Myanmar and Vietnam ‒ the so-called CLMV countries.
“The project development fund will benefit India’s industrial community in terms of business expansion and maintain cost competitive supply chains, besides integrating with global production networks,” said the Indian government’s Press Information Bureau in a statement published on its website.
“The key advantage of positioning India on regional value chains is to secure on a long term basis dedicated sources and markets for Indian raw materials and intermediate goods,” said the bureau.
CLMV countries have a unique position in the regional value chains and offer a gateway for market access to China, the European Union and other markets due to various trade agreements, added the bureau.
India's total trade with CLMV countries has grown tenfold over the past decade, from $1.1 billion in 2004 to $11.9 billion in 2014, according to figures from the Indian government.
The statement from the Cabinet Secretariat of India in July said a cabinet meeting chaired by Prime Minister Narendra Modi approved a bilateral investment treaty with Cambodia to encourage both India and Cambodia to create favorable conditions for investors and to promote two-way trade.
According to a report from the Federation of Indian Chambers of Commerce and Industry, bilateral trade with Cambodia totaled about $160 million in 2014-2015, an increase of about four percent from $154 million in 2013-2014.
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