There is a growing resonance and positivity between the India and ASEAN with a foreseeable impact on the regional economy, trade and geopolitical stability. Explain (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
Economic Stability
· ASEAN India Free Trade Agreement (AIFTA), which was signed between ASEAN and India in 2015, has led to a progressive market access, and a more conducive investment ecosystem among the member nations.
· Both India and ASEAN have set-up joint committees to monitor implementation of trade agreements and identify non-tariff measures which can be further liberalised.
· Apart from this, India and ASEAN countries have mutually decided to gradually abolish tariffs on 80% of tariff lines accounting for 75% of trade.
· Further liberalisation in non-tariff measures would be important for India and ASEAN to realise the goal of $200 billion trade by 2022.
· AIFTA and abolishing of tariffs on a vast number of product lines is expected to give great boost to bilateral trade.
Transport
· Enhancing air connectivity along with maritime and road linkages can further create opportunities for employment and growth for India and ASEAN.
· Further, it will be beneficial to establish efficient regional value chains (RVCs) which will strengthen economic cooperation by expanding market access among ASEAN member countries.
Logistics is likely to play a prominent role in the growth of trade between India and ASEAN in the coming years.
As a result, the focus of governments and businesses have shifted towards integrating logistics after the implementation of various forward looking initiatives, like the ASEAN-India Commemorative Summit.
· Building efficient institutional connectivity: It will be mutually beneficial to develop efficient transportation and infrastructure to enhance economic exchanges between India and ASEAN countries.
Growth in innovative ways: India and ASEAN have identified innovation as a priority, and are working towards understanding how to build connectivity so start-ups have access to markets in both regions.
Geo Political stability
· Strengthening of Look east policy and stabilizes the development of Northeast Region.
· India’s hold over maritime security in the Indian Ocean will greatly increase with the help of ASEAN.
While India and ASEAN together transcend on their respective and joined paths to economic and social prosperity, leveraging institutional mechanisms for an appropriate reduction of non-tariff barriers to enhance trade and investment would be better for this strategic partnership.
