IBCC ups India trade, investment
IBCC ups India trade, investment
Officials and business communities from Cambodia and India are hopeful that the establishment of the Indian Business Chamber in Cambodia (IBCC) will further enhance the flow of trade and investment between the two countries.
The group was officially inaugurated on January 17, uniting Indian businesspeople in Cambodia to strengthen their business and investment footprint in the Kingdom.
“The [organisation] aims to unite the Indian business community in Cambodia, fostering trade and investment to contribute to the economy’s growth,” IBCC president Babulal Parihar stated during the ceremony.
“We will play a vital role in promoting trade and investment between India and Cambodia by providing accurate information about the Cambodian market and business opportunities in India to Cambodian businesspeople,” he said.
“Having conducted business here for nearly a decade, I have witnessed Cambodia’s economic growth. I believe there are many industries and sectors with tremendous potential for investment,” he added.
Indian ambassador to Cambodia Devyani Khobragade highlighted at the ceremony that the business chamber’s presence marks an important milestone in enhancing investment and trade between the two nations, which share a longstanding close relationship.
“India and Cambodia enjoy excellent political relations and it’s an opportune time to leverage this trust to boost our business and investments. India is one of the world’s fastest-growing economies,” she stated.
“The trade and investment between our two countries have been a key priority for the Indian government, as evidenced by the steady growth in bilateral trade over the last four years. This is further supported by the ASEAN-India Free Trade Area [AIFTA]. Both countries’ commerce ministries have established a joint-working group, which held its first meeting in July 2022.
“We are also exploring a bilateral investment and free trade agreement [FTA] and have recently exchanged the first draft of a double taxation agreement [DTA]. Additionally, we are collaborating with the National Bank of Cambodia [NBC] to promote cross-border payments,” she added.
Pich Rithi, secretary of state at the commerce ministry, emphasised that the IBCC’s launch will bolster business-to-business cooperation between the two nations, offering extensive networking opportunities for businesspeople, investors and professionals across various industries.
“Cambodia experienced high economic growth of 7% for two decades before the Covid-19 pandemic in 2020. The GDP increased by 2.54 times from $11.23 billion in 2010 to $28.6 billion in 2022. In terms of international trade, Cambodia’s growth multiplied six times from $8.6 billion in 2010 to $52.3 billion in 2022,” he explained.
“After joining ASEAN in 1999 and the World Trade Organisation [WTO] in 2004, Cambodia has entered into several FTAs, including the ASEAN Free Trade Area [AFTA] and ASEAN+1 FTAs with multiple countries, as well as the Regional Comprehensive Economic Partnership [RCEP], the world’s largest FTA.
“Cambodia also has FTAs with China, South Korea and the United Arab Emirates [UAE]. As a WTO member, we enjoy numerous trade preferences through the Everything but Arms [EBA] initiative, the Gerneralised System of Preferences [GSP], etc. These agreements offer Indian businesspeople significant opportunities to benefit from trade preferences by investing and exporting globally,” he added.
Bilateral trade between the Kingdom and India has seen a steady increase, reaching nearly $485.70 million in 2023, a 10% rise compared to 2022.
Cambodia’s exports grew by over 49%, amounting to more than $293 million, while total imports dropped by 20.85% to $440 million, as reported by the General Department of Customs and Excise (GDCE).
