Kolkata, Aug 27 (IANS): India will be setting up business clusters for small-medium scale industries in Cambodia, Laos, Myanmar and Vietnam to promote Indian investment in these countries as well as offer cost rationalisation, an official said on Thursday.

"I would invite you to set-up businesses in Cambodia, Laos, Myanmar and Laos (CLMV counties) - this is the new thrust of the government through EXIM Bank (Export-Import Bank of India). Under a cluster based approach, the country will be setting up clusters of small-medium enterprises not only in India but outside as well," bank chairman and managing director Yaduvendra Mathur told participants during the FICCI Banking Conclave here.

He said the southeast Asian countries are the new places of opportunity for Indian businesses to set-up units to rationalise their manufacturing process.

Mathur said entrepreneurs need to rationalise their production process.

Referring to the Make in India campaign which aims to boost the country's manufacturing capabilities and draw in investment, he said: "Do some part of production in India while some of the finishing in the CLMV countries. If you add 35 percent (of input for the product) in CLMV, then you satisfy the WTO and trade agreements to the rules of origin."

He said China has been using this method to flood its goods in India.

"China has been using these countries to pump in products into India. We didn't understand these when we signed the Free Trade Agreements," he said.

Besides the focus on southeast Asia, Mathur suggested businesspeople to focus on the European countries as well for asset acquisition. He also cited the success of the small-medium enterprises which put Bangladesh's textile industry as a global leader in the world map.