New Delhi, KNN (Feb 28) Giving shape to ‘Act East’ Policy of the Government, the Union Finance Minister Arun Jaitley today announced setting-up of manufacturing hubs in CMLV countries, namely, Combodia, Myanmar, Laos and Vietnam.

In order to catalyse investments from the Indian private sector in this region, a project development company will set-up the manufacturing hubs in CMLV countries through separate Special Purpose Vehicles (SPVs).

The ‘Act East’ policy of the Government endeavours to cultivate extensive economic and strategic relations in South-East Asia.

According to a latest Exim Bank study the CLMV countries- endowed with abundant natural resources and low-waged labour forces, are among the fastest growing economies in the ASEAN region. The average real GDP growth of CLMV countries was 6.2%

The study draws attention to the fact that India's trade and investment relations with the CLMV region have strengthened in recent years.

India's total trade with the CLMV countries has risen more than eight-fold in the last ten years, from US$ 0.9 billion in 2003 to US$ 7.8 billion in 2012.

The potential items for India's exports to the CLMV region, which broadly include, inter alia, machinery; electrical and electronic equipment; transport vehicles; optical, photographic and medical apparatus; plastics and articles; iron and steel and its articles; rubber and articles; petroleum products and sugar and sugar confectionary.

The study has also delineated broad strategies and recommendations to enhance and foster India's commercial relations with CLMV region, which include, among others, cooperation in agricultural development, cooperation in infrastructure, cooperation in SME sector, and broadening linkages with trade and investment promotion institutions in the region. (KNN/AB)