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In September 2009 India had signed a free trade agreement (FTA) with the ASEAN to promote economic ties. It was seen as a major foray into a formidable regional trade block. Officials are working on the re-activation of the ASEAN-India Business Council (AIBC), the holding of the ASEAN-India Business Summit (AIBS) and an ASEAN-India Business Fair (AIBF). While FTA may benefit India, it seems to benefit the ASEAN countries more, analyses Navodita, our Associate Editor, in the weekly column, exclusively for Different Truths.
External Affairs Minister Sushma Swaraj was on a five-day visit to Thailand, Indonesia and Singapore to boost economic ties with India with the three founding member-states of the ASEAN (Association of Southeast Asian Nations). It was viewed as a part of India’s Act East policy. India is ASEAN’s seventh largest trading partner.
As a way to promote ties, Singapore’s Deputy Prime Minister Teo Chee Hean said his country could
Let us remind the readers that earlier in November 2017 PM Narendra Modi had addressed the ASEAN Business & Investment Summit at Manila highlighting trade and inclusive growth as the key themes of the visit. He even focused on entrepreneurship and increasing land, sea and air connectivity to the region from India. PM spoke about boosting tourism between the two countries and introducing electronic visa system to promote it.
Moreover, there have been some limited Indian investments in ASEAN countries, some dating as early as the 1960s, their presence continues to remain marginal in aggregate terms. Between 1995 and 2001, there is a distinct upward trend in investment from India to ASEAN regions until these economies went into a crisis in 1997-98, after which there has been a declining trend in inflows. Singapore has generally attracted the bulk of Indian FDI flowing into ASEAN. A major reason for such paltry levels of Indian investments in these countries is the inability of Indian diaspora here to attract anything substantial. India now has the capacity, resources, and competitiveness to contribute to ASEAN’s inward FDI inflows. However, ASEAN countries need to be proactive in attracting Indian companies.
Regarding manpower flows, there are no available data detailing the extent of manpower flows between
Ahead of the Republic Day where the ten Heads of State of ASEAN countries will be present as chief guests, preparations should be made to sustain the dynamics of an emerging economic relationship to develop trust and confidence in each other and work towards a stronger Asian economic community.
©Navodita Pande
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