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Saturday, 29 October 2016 00:00 - - {{hitsCtrl.values.hits}}
By Himal Kotelawala
A total of 59 products have been identified by the freshly launched India Commonwealth SME Association that can be exported to India as intermediate inputs on India’s global value chain, giving Sri Lankan suppliers access to a $2 billion market.
Speaking to Daily FT on the sidelines of the association’s official launch yesterday organised by the Export Development Board (EDB), Adviser and Head, Trade Competitiveness Section, Trade Division of the Commonwealth Dr. Rashmi Banga said an advisory board has been formed for the Commonwealth SME Association that can be utilised as a platform where buyers and sellers can meet and discuss business.
Sri Lanka is the first country the Association has opened its membership to and membership fee for the first year has been waived off for all exporters.
According to Dr. Banga, Sri Lanka was chosen because following the conclusion of the Association’s India project, the EDB had been very keenly interacting with the Association and had requested information ono how they can encourage Sri Lankan exporters to access the Indian market.
“Since the request was so targeted, we have undertaken this analysis on how Sri Lanka can diversify its export and link it to India’s global value chain. We thought that to actualise this potential trade, Sri Lanka would be the best country to start the membership of this association,” Dr. Banga told Daily FT.
“We got a lot of support from the British Chamber of Commerce, UK and the Commonwealth Chamber of Commerce in Finland, and these associations are also very excited about the Commonwealth SME Association. It can link to SMEs in Asian and African countries and source their inputs and intermediate products,” she added.
The list of 59 products will be provided to the Government soon, which includes articles that go as inputs into the apparel sector, rubber tyres for the Indian automobile sector, etc., all exported from Sri Lanka. Rubber sector.
There are broadly eight to nine sectors covered and very specific 6-digits level inputs have been identified which can be supplied, said Dr. Banga, adding that Sri Lanka was found to be competitive compared to the other exporters - China, Malaysia, Vietnam, etc, depending on the product - of intermediate products.
“India is also going to benefit because it’s going to get its intermediate products at a lower cost and Sri Lanka will benefit because it’ll have access to the Indian market,” she said.
When asked if any of the 59 products are covered under the current Indo-Lanka Free Trade Agreement, Dr. Banga said that the Association has identified 10 products that Sri Lanka is currently exporting to other countries except India.
“So there is capacity for Sri Lanka to export, but right now they’re not exporting to India. For India, these 10 are new products. While 49 intermediate products are being imported, at the moment their total export is less than $50 million, while potential exports can be around $2 billion,” she said.
