India-Vietnam Partnership To Improve Access To Critical Inputs, Export Growth: Industry

(MENAFN- IANS) New Delhi, May 7 (IANS) Vietnam President To Lam's visit to India elevated bilateral ties to an Enhanced Comprehensive Strategic Partnership, and will improve India's access to critical inputs, generate substantial long-term benefits for exports, investments, and GDP growth, the industry chamber PHDCCI said on Thursday.

Rajeev Juneja, President, PHDCCI said that the bilateral partnership creates a stronger framework for supply-chain resilience, manufacturing cooperation, digital connectivity, and technology partnerships.

The new bilateral agreements align with India's initiatives of“Make in India”, Digital India, pharmaceutical exports expansion, semiconductor and electronics ecosystem development, and diversification of critical mineral supply chains, he added.

Cooperation in rare earths and critical minerals will strengthen India's access to critical inputs required for electric vehicles, semiconductors, electronics, renewable energy, and defence manufacturing, supporting supply-chain security and advanced manufacturing growth.

Regulatory cooperation in pharmaceuticals will improve market access for Indian generic medicines and medical devices, which already enjoy significant competitive advantage.

Further, technology cooperation in electronics, semiconductors, AI, and IT services will strengthen India's role in global digital value chains.

Agricultural exports, tourism, aviation, urban infrastructure, and smart city development will also enjoy gains from the partnership, generating employment growth.

The outcomes of the visit reinforces India's“Act East Policy” by expanding strategic engagement with Southeast Asian countries.

Enhanced cooperation with Vietnam is expected to improve connectivity, trade resilience, and long-term industrial partnerships across critical sectors, said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.

The new strategic partnership has set a bilateral trade target of $25 billion by 2030, and the President's visit produced multiple memoranda of understanding across sectors, including rare earths, digital payments, pharmaceuticals, electronics, tourism, culture, urban development, education, and technology cooperation.

Both sides will facilitate market access, including for agricultural products such as Indian grapes and pomegranates as well as Vietnamese durians and pomelos, a joint statement said after talks between Prime Minister Narendra Modi and Vietnamese President To Lam.

Vietnam affirmed its commitment to diversifying its supply sources and to importing more products from India to serve its domestic production and export needs.

Both sides agreed to explore ways for a more conducive regulatory environment to facilitate ease of doing business for companies of both countries, including in standards compliance certification.

-IANS

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