US India Global Review 2018

private sector investment in the region. Key projects include: India–Myanmar–Thailand Trilateral Highway Project (to be completed by 2020), Kaladan Multimodal Project and India-Myanmar- Thailand Motor Vehicle Agreement (IMT MVA) and India- Myanmar-Laos-Vietnam- Cambodia highway. • At the India Telecom-2017 conference, India offered ICT products, technical knowledge and financial help to ASEAN countries for developing telecom- munication ecosystem in their respective nations. The aim of the meet was to promote Indian telecommunication companies as service and technology providers in ASEAN markets. • During the 13th ASEAN-India summit, India committed a Line of Credit of USD1.0 billion to support projects aimed at boosting physi- cal and digital connectivity between ASEAN and India. Sector-focused initiatives Science and Technology • At the 14th ASEAN-India summit held in 2016, Government of India increased the ASEAN- India Science and Technology Development Fund from USD1 million to USD5 million. The fund was established in November 2007 to promote collaborative Research and Development (R&D) projects in science and technology21 • Government of India plans to commercialise low-cost technolo- gies, collaborative R&D projects and technology transfer through ASEAN-India Innovation Platform. Space • India and Vietnam have signed a framework agreement to explore outer space for peaceful purposes. The countries will col- laborate in the areas of satellite communication and satellite- based navigation, space science, remote sensing of the earth, and planetary exploration. As part of ASEAN-India initiative India plans to open Indian Space Research Organisation (ISRO) Satellite Tracking Centre in Vietnam. Bilateral agreements between ASEAN and India Malaysia • Visa-free programme for Indian nationals between 1 April 2017 and 31 March 2018 • In 2017, seven MoUs were signed to promote bilateral coop- eration, and economic growth and development. The areas included cooperation in development of 4th technology park in India, urea and ammonia manufacturing plant development in Malaysia, sports, education and air travel. • At the India-Malaysia Business Forum held in April 2017, Indian companies operating in oil and gas, infrastructure and engineering sectors signed 31 MoUs with Malaysian counter- parts to facilitate investments of USD36 billion. • In 2015, Construction Industry Development Board (CIDB) of Malaysia proposed to invest USD30 billion in India’s Smart City project • In 2017, Government of Malaysia launched Digital Free Trade Zones (DFTZ) for SMEs/entrepreneurs with an aim to boost e-commerce growth in the country. As part of the DFTZ, Malaysia offers number of facilities such as faster customs and cargo clearance, satellite services and proximity to sea and airports. Myanmar • In 2016, during Myanmar’s President, Htin Kyaw’s visit to India, both the governments signed four MoUs for cooperation in the areas of traditional medi- cine, renewable energy, and con- struction of Myanmar’s Tamu- Kyigone-Kalewa section (India to invest USD57.2 million) and Kalewa-Yagyi road section of the India, Myanmar and Thailand Trilateral Highway. The Trilateral highway aims to facilitate move- ment of goods and traffic among nations.27, 28 Indonesia • In order to promote usage and access to reliable, clean and affordable energy, India and Indonesia signed an MoU on new and renewable energy in November 2015.29 Singapore • In December 2016, India and Singapore signed a protocol to amend their bilateral Double Taxation Avoidance Agreement (DTAA) in New Delhi. As per the agreement, the existing tax exemption on capital gains for acquired shares has been amend- ed. For shares acquired before 1 April 2017, existing tax exemption on capital gains will be preserved. However, for those acquired after 1 April 2017, a capital gain tax of 50 per cent of Indai’s domestic tax rate will be levied.30 Vietnam • During Indian Prime Minister, Narendra Modi’s visit to Vietnam in 2016, 11 MoUs of cooperation were signed between both the parties. Both countries plan to bol- ster trade, investment, defence and technology partnership through these MoUs 7 US-INDIA GLOBAL REVIEW APRIL-JUNE 2018 | This extract is from the report, ASEAN-India: Growing together, prepared by KPMG for the Federation of Indian Chambers of Commerce and Industry. It is reproduced by arrangement with FICCI and KPMG