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CLMV stands for Cambodia, Laos, Myanmar and Vietnam
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These countries have a unique position in the regional value chains in Southeast Asia region.
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These countries offer a gateway for market access to China, European Union and other markets due to various trade agreements.
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These four countries represents rapidly growing economy with rising consumption, strategic location and access, rich natural resources (oil, gas, copper, teak and gemstones), biodiversity and industrious workforce with low wages.
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Why in news?
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India is creating a Project Development Fund (PDF) for catalysing Indian economic presence in the CLMV countries viz. Cambodia, Laos Myanmar and Vietnam
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It will benefit India’s industrial community for business expansion in the CLMV countries
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PDF will give key advantage position to India in securing regional value chains on a long term basis
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Besides, it will provide a dedicated market for Indian raw materials and intermediate goods and also a dedicated source of raw materials for Indian industry
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Importance of CLMV countries:
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CLMV countries collectively are the third largest economy in ASEAN, followed by Indonesia and Thailand.
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In the last 10 years, India’s trade with the CLMV countries has grown from $1.5 billion to more than $10 billion.
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India seeks to invest in CLMV countries (which are part of 10-member ASEAN group) to take advantage of free trade agreements they have with various countries such as China.