In an endeavour to boost bilateral trade between India and Laos and strengthen economic ties between the two countries, President Pratibha Devisingh Patil has exhorted India Inc to invest in the ASEAN country. Significantly, the sectors which have been highlighted for Indian investors to focus on in Laos include the highly SME-dominated agriculture sector.

This development is likely to open up new markets for Indian SMEs in the country which has remained under-explored by Indian business units. Small players in sectors such as mining, construction, roads and railways and allied sectors which fuel the growth of these industries can also look forward to foray into Laos to capitalise on the investment-friendly environment in that country.

Notably, the Indian President recently attended the India-Laos Forum in Vientiane, which also witnessed the participation of apex industry bodies such as the Confederation of Indian Industry, Federation of Indian Chambers of Commerce and Industry (FICCI) and the Associated Chambers of Commerce and Industry of India. With the government and industry representatives seeking to enhance bilateral trade between India and Laos, Indian SMEs can expect to benefit from further facilitation of trade between the two countries.

Earlier in 2008, FICCI India-Laos Joint Forum chairman D Datta had identified SME-concentrated sectors such as drugs, pharmaceuticals, chemicals, fertilisers and food processing, among others, as sectors which offered huge scope for bilateral trade enhancement between Laos and India.