Association of Southeast Asian Nations & India

On 8 August 1967, five leaders - the Foreign Ministers of Indonesia, Malaysia, the Philippines, Singapore and Thailand - sat down together in the main hall of the Department of Foreign Affairs building in Bangkok, Thailand and signed a document. By virtue of that document, the Association of Southeast Asian Nations (ASEAN) was born.

It declared the establishment of an Association for Regional Cooperation among the Countries of Southeast Asia to be known as the Association of Southeast Asian Nations (ASEAN) .

To accelerate the economic growth, social progress and cultural development in the region through joint endeavors; and
To promote regional peace and stability through abiding respect for justice and the rule of law.

A concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies.

ASEAN member countries

ASEAN

Neutral Position

High Bargaining Power

ASEAN is not considered a threat to China, India, Japan, South Korea, Australia, and New Zealand

Attractive Single Regional Market

Competitive Regional Production Base

Huge market High consumption Less competitive

Smooth flow of goods, services, and people under FTA Abundance of natural resources Low labor cost
7

At the ARF and at ASEAN-India Summit level meetings.

The ARF discusses security issues through its ARF Senior Officers Meetings (ARF-SOM) and Inter-sessional Support Group meetings on Confidence Building Measures (ISG on CBMs) And its track-II platforms the Council for Security Cooperation in the Asia Pacific (CSCAP) and ASEAN Institute of Strategic and International Studies (ASEAN-ISIS).

Since 1996, India has been taking part in both the wings of the Forum on issues related mainly to transnational organized crimes such as: drug-trafficking terrorism and counter-terrorism maritime piracy Illegal movement of nuclear, chemical, biological, and other deadly materials.

In the 2nd India-ASEAN summit level meeting in October 2003, India also signed the ASEAN Treaty of Amity and Cooperation(TAC), expressing its adherence to the ASEAN goal of regional peace and stability.

Remained minimal during Cold War years, picked up only when India adopted Look East Policy (early 90s).
During the last fifteen years, the total value of trade between India and ASEAN countries has gone up from US$2.4 billion in 1990 to US$23 billion by the end of 2005. Area of trade: palm oil, electrical and high-end technological components, chemical products and drugs, textiles, software, tea and coffee, both raw and processed meats automotive, chemicals, consumer electronics and retailing sectors and so on.

Foreign Direct Investment constitutes another important area for economic cooperation between India and ASEAN.
The total Indian FDI in the ASEAN region remained at a modest US$225 million and FDI from the ASEAN-6 countries in India at US$2 billion. ASEAN FDI is mainly in the areas of construction (Malaysian companies) and software (Singapore).

India-ASEAN economic cooperation is being managed and overseen through the following institutional arrangements at the official level.

ASEAN-India Business Summit

ASEAN-India Business Council

ASEAN-India Economic Ministers Meetings ASEAN-India Trade Negotiation Committee ASEAN-India Working Group on Trade and Investment

25000 20000 15000 In $mn 10000 5000 0

-5000
2002-03 India's export 4627.7 india's import 5160.3 trade balance -532.6 -10000 2003-04 5825.7 7438.2 -1612.5 2004-05 8422.4 9110.9 -688.5 2005-06 10409.8 10882.1 -472.3 2006-07 12605.2 18091.6 -5486.4 2007-08 15721.2 22669.7 -6948.5

Products Cereals Food Residues & Animal Fodder Mineral Fuel & Oils

Exports from India 161.06 331.00 1,185.22

Products Animal & Vegetable Fats Mineral Fuels & Oils Organic Chemicals

Imports from ASEAN 1903.91 226.46 441.99

Organic Chemicals
Cotton Manmade Filaments Precious Stones

348.49
123.17 136.00 415.74

Wood Articles
Books & Scripts Machinery & Appliances Electrical Machinery

505.07
134.55 1,127.80 779.86

Iron & Steel

Machinery & Appliances Electrical Machinery Total Trade

390.44
298.52 182.69

Aircraft Parts
Ships, Boats Ores, Slag & Ash

119.55
279.68 124.30 7,433.16

5,821.74 Total Trade Source: Ministry of Commerce, GoI, 2003-04

Country India ASEAN Brunei

Population (mn) 1055 542 3.63

GNP (bn $) 601 686 4.71

Per Capita GNP ($) 530 1264 13,545

Cambodia
Indonesia Laos Malaysia Myanmar Philippines Singapore Thailand Vietnam

14.13
213.5 5.61 25.05 53.51 81.1 4.2 63.95 81.2

4.21
209.0 2.04 104.0 9.6 79.27 91.35 143.3 39.02

293
947 340 4,248 863 992 21,492 2,275 486.01

Source: ASEAN Finance & Macroeconomic Surveillance Unit & International Financial Statistics Yearbook 2004, IMF

Country India ASEAN

Agriculture (1990) 31 22

Industry (1990) 28 32

Services (1990) 41 46

Agriculture (2003) 23 21

Industry (2003) 26 31

Services (2003) 52 48

Source: Statistical outline of India 2004-05, TATA Economic Services & CIA Country Fact sheet

A number of agreements have been signed covering areas like space technology, info-tech, biotechnology, pharmaceuticals, and telemedicines. India and ASEAN have also decided to establish an India-ASEAN Institute of Biotechnology in Jakarta and develop an ASEAN-India Digital Archive.

Buddhism practiced by a large number of people in mainland Southeast Asia Indian merchants and traders from Gujarat are known to have brought Islam to the Southeast Asian coasts during their trading visits. India and ASEAN have also been working on linking Indian higher educational institutions with the ASEAN University Network. organizing Indian Education Fairs in ASEAN countries by the government.

India Gross enrolment ratio in primary schools (%) Adult Literacy (%) 99 69

ASEAN 87 89

Labour cost per worker in Manufacturing ($ per year)

* Cambodia ** Indonesia

1192

152*1638**

Source: Key Statistical indicators, Asian Development Bank 2004

The existing volume of trade between India and ASEAN has remained low.
Indias share in ASEANs total global trade has remained only 1 per cent.

Indias policy of sectoral capping of FDI- restricted the flow of ASEAN FDI
Indias bureaucratic entanglement But, the nature and dynamics reflect both the cementing and diversification of regional cooperation.

Agreements
Bangladesh, India, Myanmar, Sri Lanka, Thailand Economic Cooperation Mekong Ganga Cooperation Initiative Instrument of Accession to the Treaty of Amity and Cooperation Framework Agreement on Comprehensive Economic Cooperation

Year
1997

2000 2003 2003

ASEAN-India Joint Declaration for Cooperation to Combat International Terrorism

ASEAN-India Partnership for Peace, Progress and Shared Prosperity Plan of Action to Implement the ASEAN-India Partnership for Peace, Progress and Shared Prosperity

2003

2004 2004

ASEAN-India cooperation covers the economic, political and security, and development cooperation dimensions

In terms of sectors, ASEAN-India cooperation covers the following: trade and investment, science and technology, human resources development, tourism, etc. India had contributed USD2.5 million in October 2002 to the ASEANIndia Cooperation Fund to further enhance cooperation. During the 5th ASEAN-India JCC, India proposed a new sector of cooperation agriculture- and would be submitting a concept paper to ASEAN on the modalities and areas to forge co-operation in the sector.

The vital commercial sea lanes between West Asia and South East Asia straddle the Indian mainland and its island territories. A vast potential still remains untapped. Increase the level of cooperation. Programmed approach with clear strategic thrusts

The ASEAN-India Framework Agreement on CEC, could facilitate greater flow of trade and investment, encourage their respective private sectors to tap on the huge market potentials.
Combating international terrorism. Other means of cooperation frameworks as it would complement the larger goal of enhancing ASEAN-India ties.

The First Delhi Dialogue : New Delhi, 21-22 January 2009 Platform for policy-makers, businessmen and analysts in the private and public sectors to engage in policy thinking and innovative solutions to changes and challenges facing the region.

The focuses of the first Dialogue included India and ASEAN in the 21st Century Energy Security - The Way Forward for ASEAN and India, ASEAN-India Connectivity, and Global Financial Turmoil

Indias entry into ASEAN was engineered by the economic and strategic factors India dialogue relations had grown rapidly from a sectoral dialogue partnership in 1992 to a full dialogue partnership in December 1995. India has been an active participant of the ARF. Indias focus on a strengthened and multi-faceted relationship with ASEAN is an outcome of the significant changes in the worlds political and economic scenario since the early 1990s and Indias own march towards economic liberalization.