NEW DELHI: Hoping to give more teeth to its Act East Policy, the Modi government has decided to expand India’s economic links with Cambodia, Laos, Myanmar and Vietnam (CLMV) by promoting private sector investments in these countries through a project development company.
his announcement was made by Finance Minister Arun Jaitley while presenting the annual budget. “The ‘Act East’ policy of the government of India endeavours to cultivate extensive economic and strategic relations in Southeast Asia… A project development company through separate special purpose vehicles set up manufacturing hubs in CMLV,” Jaitley had announced.
The Commerce Ministry had earlier sought a corpus of Rs 100 crore to provide an impetus to India’s initiative to set up projects overseas, mainly in CLMV. India has strong cultural links in all these countries besides having strategic and security interests in Vietnam and Myanmar. Delhi has also been supporting development and capacity building projects in CLMV, official sources said.
With China undertaking infrastructure projects at strategic locations in South Asia and simultaneously increasing its naval presence in the Indian Ocean, India too has been seeking closer ties with several of China’s neighbours, particularly Vietnam with which New Delhi now has growing defence and security relations. Experts point out that China has also been deepening its economic links and expanding its presence particularly in Laos and Cambodia. Last December speaking at a convention at Delhi Minister of State for Commerce and Industry Nirmala Sitharaman pointed out that ‘Culture, Commerce and Connectivity’ will be the hallmark of India’s relation to the CLMV countries.
Source: The Economic Times