Sept. 22 – India and the Association of Southeast Asian Nations (ASEAN) are beginning talks to open the services sector in accordance to the recently concluded free trade agreement between the two.

The Indian economy is mainly driven by its services sector, contributing more than 55 percent to the GDP. “Negotiations for the free trade pact (between India and ASEAN) on services sector will begin soon,” Ambassador of Thailand Krit Kraichitti was quoted by The Economic Times as saying.He estimates that talks will last about two years before anything is implemented since the ASEAN bloc consists of 10 countries of Southeast Asia.

Due to the sector’s importance, the Indian industry is weighed down by strict domestic regulations and complicated taxes. Kraichitti said that safeguard measures will be considered before implementation of the FTA. “Services sector is very important. The pact will benefit all,” he added.