Sri Lanka discusses improving market access to India and growing beyond traditional markets
Sri Lanka’s National Chamber of Exporters (NCE) has reportedly initiated a series of webinars under the theme ‘Grow Beyond Traditional Markets’ in collaboration with Sri Lankan missions overseas.
According to reports, the main objective of this initiative is to assist exporters find new markets by identifying emerging demand for various products and services under the new normal by global consumers.
Keeping abreast with the programme, the NCE has reportedly conducted a webinar under the title ‘Improving Market Access to India’ recently, in coordination with the High Commission of Sri Lanka in New Delhi and the Indian Importers of Chamber of Commerce (IICC), with which the NCE has signed an MoU to facilitate two-way trade between the two countries.
Representing the High Commission, Minister Commercial Upekha Samaratunge has reportedly addressed the participants jointly with Indian Importers Chamber of Commerce Director Y.K. Pandey. The webinar was moderated by Past President of the Chamber Sarada de Silva.
Making the opening remarks, Samaratunge has reportedly made a presentation stating that India is Sri Lanka’s number one trading partner with a US$ 3.6 billion value of exports which accounts to about 14.1% of Sri Lanka’s total exports.
She has also stated that Sri Lanka’s current market share in India is around 0.2% only, indicating an enormous potential for growth in exports and the current market scenario in India. Outlining the Indian economy, she has reportedly stated that the Indian economy is also going through a recession due to the global economic condition.
Local media reports stated that it was mentioned that currently, the key exports to India are apparel, black pepper, animal feed, vegetable fat, insulated wires/cables, processed food, rubber based products, cloves, etc. and analysing the trade between the countries, the total exports from Sri Lanka stood at US$ 70.1 million by 2020 and it has increased to US$ 604.5 million, which is a remarkable achievement. The main trade tool to facilitate trade between Sri Lanka and India is the Indo Sri Lanka Trade Agreement and utilisation rate for Sri Lankan exports under the ISFTA is around 60% and the imports stands at 5%.
Local media reports further state that the main products exported under the ISFTA are tea, porcelain products, rubber based products, furniture, ceramic and apparel. However, under the new normal condition, some of the potential export items are vegan and organic food products, herbal teas, electronic accessories, packaging industry related products which require vigorous promotion and marketing by Sri Lanka.
Addressing the participants, Pandey has reportedly stated that under the prevailing global condition, the Indian government is encouraging domestic industries under the ‘Made in India’ policy.
He has stated that the demand for quality tea is increasing, especially Ceylon green tea in India. There is also a high demand for Sri Lankan gem stones, and that these unique products should be marketed well, as Indians have Vastu and other religious beliefs wearing gems and precious stones.
IICC has its representation in all commercially important cities in India and has representatives in 62 locations world-wide and IICC is ready to support the Sri Lankan Exporters in reaching the Indian market by connecting the right type of business partners, both importers as well as investors and vice versa for Indian businesses, Pandey has added.
OSL take:
Sri Lanka and India enjoy strong bilateral and trade ties that continue to be further strengthened by a functional free trade agreement. Sri Lanka and India are currently engaged in finalizing a a stronger trade pact – ETCA. Sri Lanka enjoys preferential treatment when trading with India and vice versa. Many Indian businesses have formed partnerships/joint ventures with Sri Lankan businesses. Given Sri Lanka’s expanding economy, Indian businesses/investors could confidently explore business/investment opportunities in the island. Other foreign businesses/investors looking at doing business with India could explore the possibility of setting up base in Sri Lanka to engage with India.
| Article Code : | VBS/AT/20210524/Z_8 |