Standard Chartered Bank released a report on India's economic performance, stating that it foresees a boom in its export industry with ASEAN countries.

The bank cites two major reasons for India's foreseen boom. One is its favorable economic ties with ASEAN and another is China's economic slowdown.

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The forecast reports that India's export potential will reach up to US$280 billion annually over the next 10 years. Currently, India's exports are estimated at US$33.13 billion, while its two-way trade is seen at an annual US$80 billion.

India's main products with promising performance in the current trade are organic chemicals, petroleum products and vehicles. In the report, Standard Chartered sees a huge growth in these categories in the coming years. Its export of jewelry, apparel, accessories, and pharmaceuticals are also seen to have growth potential.

What hindered India to step-up its economic growth in the past was its geographical location, for one. Myanmar, which serves as its gate to Southeast Asia, had been isolated.

Another was that ASEAN's investments were focused on China that had an economic boom in the past two decades, the report said.

But times have changed and the time has come for India.

Citing its "eastward policy," India looks at stimulating trade with Myanmar. It also believes that Vietnam has a big role, with its plans to open a port at Cam Ranh Bay primarily for world trade.

In addition, ASEAN plans to create the ASEAN Economic Community (AEC) by 2015. It is an economic strategy for its members to emerge as a single market.

Economic experts believe that the AEC will reshape the economic landscape for its 10 members with US$2.3 trillion worth of combined gross domestic product.

ASEAN's strength is seen in trading natural resources and electronics.

However, the forecast will depend on several things. One is Prime Minister Narendra Modi's direction to accelerate infrastructure developments as Standard Chartered anticipated that road and river transportation will drive trade.

The report also cited China's cooperation. Its solid claims on large parts of South China Sea might impede Vietnam's plan to build the port, for which India has high hopes.

TagsStandard Chartered, ASEAN, Prime Minister Narendra Modi, Myanmar, Vietnam