INDIA TRADE WITH

ASEAN
OBJECTIVES

● To understand India's trade with ASEAN countries in terms of exports and imports
growth and pattern
● To examine the trade share as exports and imports of ASEAN countries in India's total
trade as exports and imports
LITERATURE REVIEW

● http://ris.org.in/sites/default/files/Executive_summary_ASEAN_India.pdf

Talks about the connectivity

WHAT IS ASEAN?
● Association of Southeast Asian Nations (ASEAN) is an intergovernmental organization
● Promotes economic growth and regional stability among its members.
● Organization strives towards peace and stability in the region
● Members have signed a treaty pledging not to develop nuclear weapons
ASEAN BASIC INDICATORS

Source: https://data.aseanstats.org/
IF ASEAN WERE A COUNTRY

Source: https://data.aseanstats.org/
 ROAD MAP OF INDIA AND
ASEAN
● In the cold war era , India did not favor any regional
organisation and actively participated in global organisation
● Geopolitics of the Cold War placed ASEAN and India in
opposing ideological blocs.
● Many forces (Rise of China, The Asian Financial Crisis)
compelled India to actively participate in regional
organisation
● Transformation of Look East policy to Act East policy
underscores the importance India realises with ASEAN
nations

Source: http://ris.org.in/sites/default/files/Executive_summary_ASEAN_India.pdf
INDIA’S TRADE WITH ASEAN

● ASEAN is India's fourth largest trading partner

● US$ 81.33 billion, which is approx. 10.6% of India's overall trade
● India's export to ASEAN stands at 11.28% of our total exports
● FDI inflows into India from ASEAN between April 2000 to March 2018 was about US$68.91 billion
● FDI outflows from India to ASEAN countries, from April 2007 to March 2015, was about US$38.672
billion
● Indian exports to ASEAN have grown to US$6.07 billion from US$25 billion in 2015-16 to US$31.07
billion in 2016-17
● As of 2016-17, India’s imports to ASEAN stands at US$40.63 billion. This is an increment of 1.8% since
2015-16

Source http://mea.gov.in/aseanindia/20-years.htm
COMMODITIES THAT ARE MAJORLY TRADED
BETWEEN INDIA AND ASEAN

Source: https://data.aseanstats.org/
INDIA-ASEAN FREE TRADE AGREEMENT

● ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten member states of the
Association of Southeast Asian Nations (ASEAN) and India

● Emerged from a mutual interest of both parties to expand their economic ties in the Asia-Pacific region

● It is one of the world’s largest FTAs – a market of almost 1.8 billion people with a combined GDP of
US$5 trillion.

● It will liberalise tariff of over 90 percent of products traded between the two dynamic regions

CRITICISM:

1. India will not experience as great an increase in market access to ASEAN countries as ASEAN will in
India

2. Two regions aim to reduce their tariffs on a majority of their traded goods.
INDIA-ASEAN TRADE FIGURES (country wise)
 ASEAN AND INDIA CONNECTIVITY

● India is the third country after Japan and China to initiate a dedicated
meeting with the ASEAN Connectivity Coordinating Committee (ACCC)

● One of the flagship projects for land connectivity between ASEAN and
India is the India-Myanmar-Thailand Trilateral Highway.

● To develop connectivity through water, ASEAN and India are working on

the Kaladan Multi-Modal Transit Transport Project (KMMTTP).

● The India, Myanmar, and Thailand Motor Vehicles Agreement will allow
free movement of cargo, passenger, and personal vehicles along the roads
linking these three countries.
CHALLENGES

● The two-way trade between ASEAN and India is increasing steadily; however, it is in favour of
ASEAN and the trade gap is broadening regularly.

● ASEAN’s share in India’s foreign trade and inflows of FDI is higher than India’s share in ASEAN’s
total external trade and FDI inflows

● Liberalisation in services in the RCEP(Regional comprehensive Economic partnership) mega-

trade bloc remains a challenge

● Connectivity and infrastructure are major challenges to further push the trade ties between India
and the Association of South East Asian Nations
THANK YOU