asean @ 50 years and relations with india · economic trade off. asean, has combined population of...

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1 ASEAN @ 50 YEARS AND RELATIONS WITH INDIA Name : Brigadier Hitten Sawhney, YSM, SM Position : Indian Army Course : NDC Class 60 Abstract 1. On 8 th August, 2017, the Association of Southeast Asian Nations (ASEAN) completed 50 years, a remarkable journey that was initiated in a sleepy town Bang Saen, 90 kilometres from Bangkok, by the then leaders of Thailand, Singapore, Indonesia, Malaysia and the Philippines, way back in 1967, in the midst of Cold War tensions. The South Asian Association for Regional Cooperation (SAARC) on the other hand was formed in 1985, in Dhaka, with objectives such as to promote the welfare of the people of South Asia, to improve their quality of life, accelerate economic growth, social progress and cultural development. While ASEAN continues to weave a success story, SAARC’s performance remains dismal in regional cooperation. 2. The ASEAN (Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, Vietnam) and SAARC (Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka) are two regional forums with a similar background but different results. In spite of initial skepticism about its relevance, ASEAN has been able to reinvent, evolve itself and silent its critics to become one of the successful regional forums of the world. SAARC needs to re-evaluate itself and redraw its mechanism. Over the years, ASEAN has evolved as a multilateral process which has benefited its member countries, because of regular dialogue and economic integration, leading to an incremental reduction in the threat perception and building of the ASEAN Community into political, security, cultural & economic domains. However, many international critics and scholars have criticised its consensus building approach and the policy of non-interference in each others internal affairs. Despite this criticism, ASEAN has slowly transformed itself into a core regional grouping in East Asia and institutions such as ASEAN Defence Ministers Meeting Plus (ADMM+), Extended ASEAN Maritime Forum (EAMF) and affiliated institutions have promoted dialogue and cooperation among regional stakeholders.

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ASEAN @ 50 YEARS AND RELATIONS WITH INDIA

Name : Brigadier Hitten Sawhney, YSM, SM

Position : Indian Army

Course : NDC Class 60

Abstract

1. On 8th August, 2017, the Association of Southeast Asian Nations (ASEAN) completed

50 years, a remarkable journey that was initiated in a sleepy town Bang Saen, 90 kilometres from

Bangkok, by the then leaders of Thailand, Singapore, Indonesia, Malaysia and the Philippines,

way back in 1967, in the midst of Cold War tensions. The South Asian Association for Regional

Cooperation (SAARC) on the other hand was formed in 1985, in Dhaka, with objectives such as

to promote the welfare of the people of South Asia, to improve their quality of life, accelerate

economic growth, social progress and cultural development. While ASEAN continues to weave a

success story, SAARC’s performance remains dismal in regional cooperation.

2. The ASEAN (Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Cambodia,

Laos, Myanmar, Vietnam) and SAARC (Afghanistan, Bangladesh, Bhutan, India, Maldives,

Nepal, Pakistan, Sri Lanka) are two regional forums with a similar background but different

results. In spite of initial skepticism about its relevance, ASEAN has been able to reinvent, evolve

itself and silent its critics to become one of the successful regional forums of the world. SAARC

needs to re-evaluate itself and redraw its mechanism. Over the years, ASEAN has evolved as a

multilateral process which has benefited its member countries, because of regular dialogue and

economic integration, leading to an incremental reduction in the threat perception and building of

the ASEAN Community into political, security, cultural & economic domains. However, many

international critics and scholars have criticised its consensus building approach and the policy of

non-interference in each others internal affairs. Despite this criticism, ASEAN has slowly

transformed itself into a core regional grouping in East Asia and institutions such as ASEAN

Defence Ministers Meeting Plus (ADMM+), Extended ASEAN Maritime Forum (EAMF) and

affiliated institutions have promoted dialogue and cooperation among regional stakeholders.

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3. ASEAN - India dialogue relations have grown rapidly from a sectoral dialogue

partnership in 1992 to a full dialogue partnership in December 1995. The relationship was

further elevated with the convening of the ASEAN - India Summit in 2002, in Phnom Penh,

Cambodia. Since then, the ASEAN - India Summit has been held annually. At the 13th ASEAN -

India Summit held in Kuala Lumpur on 21 November 2015, the ASEAN leaders welcomed

India’s initiative, namely the “Act East Policy” & “Make in India” and noted that the

initiatives could complement ASEAN’s community building efforts. In that regard, the ASEAN

leaders encouraged India to work with ASEAN to realise the vision and goals outlined in the

ASEAN 2025: Forging Ahead Together.

4. The aim of the Article is to critically examine the progress made by ASEAN@50, with

an view to understand best practices of ASEAN, emulating some of them to make SAARC a

credible regional forum. Also carryout analysis of ASEAN - India relations, with a view to

suggest a way forward.

Introduction

5. Expanding its membership from five to 10 nations today, ASEAN has had its fair share

of trials and tribulations. Today, ASEAN is the most successful forum on account of two

important aspects. First, it’s the most diverse regional forums with diverse ethnicity, cultural

heritage, religion, dialect and languages. Second, each member of the ASEAN forum is at a

different stage of economic growth and yet the member nations have been able to harmonise

economic trade off. ASEAN, has combined population of 630 million, has a combined GDP of

US$ 2.6 trillion and is the third fastest growing major Asian economy after China & India.

ASEAN, today, is a potent economic force in the global arena, as the sixth-largest economy in

the world. It is predicted to become the world’s fourth-largest economy by 2050, wherein the

consumer households could almost double to 125 million households by 2025. It is also the

fourth-largest exporting region in the world and accounts for 7 per cent of global exports.

ASEAN, today, is close to 26 per cent of export share within the region and 22 per cent of the

total import, which is healthy considering different layers of economy in the region.

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6. India’s shift to a free - market economy coinciding with the end of the Cold War created

the necessary condition for its decision makers to launch the “Look East Policy”, with the

ASEAN at its centre, thereby ending India’s isolation from Southeast Asia since the 1960s.

Whereas, its economic agenda dominated the new foreign policy initiative, India simultaneously

engaged Southeast Asia in the area of defence. This came with the backdrop of the region’s

discomfort vis-a-vis India’s rising military power in the 1980s, especially its naval power. The

region as a whole, through ASEAN, welcomed India’s initiative and has steadily accommodated

India’s objectives, by accepting India as a full dialogue partner and a partner at the summit level.

Also, in the political and security domain, India has been admitted into ASEAN led forums such

as the ASEAN Regional Forum (ARF), the East Asian Summit (EAS) and the ASEAN Defence

Ministers’ Meeting (ADMM) plus, despite initial reluctance on the part of some ASEAN

member states. In 2012, ASEAN and India celebrated the 20th Year of ASEAN - India

Dialogue Relations. To mark this auspicious event, the ASEAN - India Commemorative

Summit was held in New Delhi on 20 December 2012 with the theme, “ASEAN - India

Partnership for Peace and Shared Prosperity”. The added significance of the

Commemorative Summit was the decision to elevate this bilateral dialogue relations to that of a

strategic partnership.

ASEAN and SAARC

7. ASEAN is a regional intergovernmental organisation comprising 10 Southeast

Asian states, which promotes Pan-Asianism, intergovernmental cooperation and facilitates

economic, political, security, military, educational & socio-cultural integration amongst its

members and Asian states. Its principal aims include accelerating economic growth, social

progress, sociocultural evolution among its members, alongside the protection of regional

stability and the provision of a mechanism for member countries to resolve differences

peacefully.

8. Trade. The ASEAN has evolved swiftly and quickly to generate a healthy regional

economics. Though it is far below in comparison to the European Union (EU), it remains the

most potent trading community in Asia. The implementation of ASEAN Economic Community

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(AEC) blueprint accounts for a growth in intra - ASEAN trade over the years. An effort to

eliminate tariff protection, an ASEAN Free Trade Area (AFTA) has been achieved in some

member states, specifically, ASEAN six countries including Brunei, Malaysia, Indonesia,

Philippines, Singapore and Thailand. Under AFTA, these six member states cut tariffs on nearly

8,000 items. On the other hand, four of the less developed ASEAN countries (CLMV)

Cambodia, Laos, Myanmar and Vietnam will have a further period to phase in the tariff

elimination. The elimination of tariffs leads to reductions of product price, thus building stronger

commerce base. AEC integration plan, which aims to allow the free movement of goods,

services, skilled labour, and capital, is likely to provide further impetus to the regional economy.

The first AEC blueprint, signed in November 2007, has served as a comprehensive master plan

to chart the Region’s journey towards the formal establishment of the AEC on 31 December

2015. Under this Blueprint, the AEC is built on four inter-related and mutually-reinforcing

characteristics: (a) single market and production base, (b) highly competitive economic region,

(c) region of equitable economic development and (d) region fully integrated into the global

economy.

9. Compared to ASEAN, SAARC continues to project dismal record in the regional trade.

Though SAARC’s share of global trade has increased from 4 per cent in 1980 to 9 per cent in

2016, its pegged low considering 24 per cent of the world’s population share. Intra - regional

trade is merely 6 per cent of the total trade volume. So what has ASEAN done right and why

SAARC is found wanting in terms of intra - regional cooperation, trade, fight against terrorism

etc.? The vision for ASEAN Economic Community 2025 talks about a highly integrated,

cohesive economy, a competitive, innovative and dynamic ASEAN with enhanced connectivity

and sectoral cooperation shaping up a resilient, inclusive and people oriented, people centered, as

well as a truly global ASEAN. The South Asian subcontinent remains least integrated part of the

world. The lack of progress in regional integration under the aegis SAARC is widely lamented.

The dominance of strategic pessimism in the subcontinent may suggest that the situation is

unlikely to change in any significant manner for some time to come. SAARC needs to follow

ASEAN way, wherein its centrality is the backbone of mutual cooperation and many a time over

rides domestic compulsion.

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10. Fight Against Terrorism. The other important area of cooperation, common to

ASEAN as well as SAARC, is the cooperation and coordination to fight terrorism. The

non-traditional security threats are similar in both the regions. The terrorism stems from violent

ideologies and behavior. Afghanistan - Pakistan region remains hot bed of terrorist movements.

Bangladesh is seeing a rise in Islamic fundamentalism and pressure points in West Asia is likely

to trigger East worldly movement of Islamic State, affecting both SAARC as well as ASEAN. In

fact, the recruitment by Islamic State from South-East Asia to fight in Syria & Iraq about three

years ago, its formation of Katibah Nusantara there, a series of attacks in the southern

Philippines, Indonesia and Malaysia are indicative of already expanding Islamic State influence

in the ASEAN region. There are competing and conflicting security needs & interests of member

nations in ASEAN, yet they have methodically created structures and organisations to fight

terrorism in a coordinated manner. Scholars in ASEAN have identified four types of extremist

narrative; first ‘Religious and ideological narrative’ which is all pervasive; the second one is the

‘Political narrative’ envisaging use of political tools to effect change of regime; third is the

‘Social Heroic narrative’ through glorification of terrorism / violent acts; and the fourth is the

‘Economic narrative’. The ASEAN community is also concerned with radicalisation and

recruitment through propaganda, social media etc, specially keeping in mind a sizable 37 per

cent of the population being youth and 22 per cent staying in the urban area. ASEAN through

consensus is trying to overcome forum’s inertia through consensus and open a direct

communication link to counter extremism. ASEAN like SAARC is inseparable from the security

construct and only a collective effort can bring down the threat levels. As early as 2001, ASEAN

adopted the Declaration on Joint Action to Counter Terrorism commitment to fight terrorism as a

region. The ASEAN Chiefs of Police (ASEANAPOL) is yet another forum established for

fighting terrorism, along with tackling other criminal activities. It is committed to developing

capacity-building initiatives to ensure that each ASEANAPOL member has the capacity to

effectively monitor, share information and combat all forms of terrorist activities, most

importantly, following a terrorist attack. Assistance requested can be in the form of, but not

limited to identifying, pursuing / apprehending suspects, examination of the witnesses, searching

/ seizing evidence, evacuating / treating of victims, forensic assistance and crime investigation.

ASEAN is cooperating with USA, China, India, South Korea and EU in tackling extra-regional

terrorism. ASEAN’s aspires to achieve peace, stability, democracy and prosperity in the Region,

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where ASEAN member countries live at peace with one another and with the world at large.

Clearly, ASEAN is continuously evolving itself and upgrading its regional structural

arrangements to meet the challenges posed by terrorism.

11. Compared to ASEAN, SAARC’s performance in countering the scourge of terrorism

has been absolutely dismal, in spite of creating adequate structures like SAARC Regional

Convention on Suppression of Terrorism (1987), Terrorist Offences Monitoring Desk (1995),

Additional Protocol to the SAARC Regional Convention on Suppression of Terrorism (2002)

and Convention on Mutual Legal Assistance in Criminal Matters (2008). Many attribute one

member country unabated support to terror outfits and using terror as an instrument of its state

policy, as one of the biggest stumbling blocks in executing a positive counter terrorism narrative

in the South Asian region.

ASEAN and India

12. Last year, ASEAN and India celebrated 25 years of dialogue, 15 years of summit level

meetings and five years of strategic partnership. India’s relationship with ASEAN has improved

to the extent that the regional grouping is now the anchor of India’s Act East Policy. Today,

India has 30 sectoral dialogue mechanisms and seven ministerial level interactions with ASEAN,

in fields such as external affairs, defense, connectivity, commerce, telecommunications,

agriculture, energy, environmental issues and tourism. India also shares strong bilateral relations

with each of the 10 ASEAN member countries.

13. Within the Indian political establishment, the discourse with regard to the importance of

Southeast Asia has been manifested in a number of parliamentary questions and debates.

Questions have been raised within the Upper House of Parliament (Rajya Sabha) related to the

India - ASEAN rail / road link and India - ASEAN Summit. During the Sixteenth Lok Sabha

(Lower House of Parliament), between May 2014 and April 2017, more than 16 questions were

placed on the table of Parliament related to trade issues with ASEAN, visit of ASEAN countries’

leaders, India’s participation in the ASEAN summit, bilateral ties with ASEAN countries,

investment by ASEAN countries, digital connectivity with ASEAN and exclusion of natural

rubber in the ASEAN - India trade pact. This clearly shows that in terms of political

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understanding about India’s engagement with ASEAN, the law makers are fully aware of the

potential as well as curious to know India’s role and position within the ASEAN framework.

Within the Ministry of External Affairs also, the response to the question related to India -

ASEAN ties is met with enthusiasm, as it is seen as the rich dividend of India’s ‘Look East

Policy’, which is now rechristened as ‘Act East Policy’. India has undertaken a number of

initiatives, including establishing a separate Mission to ASEAN in Jakarta in April 2015. The

Ministry of External Affairs has also streamlined its policy approach towards ASEAN through

institutionalising the interaction through the establishment of an ASEAN - India Centre, an India

- ASEAN special section in its website as well as an ASEAN division in the External Affairs

Ministry. For the Indian establishment, ASEAN has been recognised for its important role in

promoting regional security and stability.

14. India-ASEAN Trade. The economic implications of the ‘Look East Policy’ have

been substantive. The two-way merchandise trade between India and ASEAN witnessed a

significant leap from a paltry $7 billion in 2000-01 to $57 billion in 2010-11, representing an

impressive eight-fold increase in a span of 10 years. India - ASEAN trade and investment

relations have been growing steadily, with ASEAN being India’s fourth largest trading partner.

The annual trade between India and ASEAN stood at approximately US$76.53 billion in

2014-15. Investment flows are also substantial both ways, with ASEAN accounting for

approximately 12.5% of investment flows into India since 2000. FDI inflows into India from

ASEAN between April 2000 to May 2016 was about US$49.40 billion, while FDI outflows from

India to ASEAN countries, from April 2007 to March 2015 was about US$38.672 billion. The

ASEAN - India Free Trade Area has been completed with the entering into force of the ASEAN

- India Agreements on Trade in Service and Investments on 1 July 2015”. The main items of

India’s exports to ASEAN are agricultural products, chemicals, engineering goods, textiles and

ready made garments, while India imports food, raw materials and manufacturing. Given

ASEAN’s economic significance, India still does not figure prominently as a trade partner for

ASEAN. India has sought to negotiate FTAs with as many countries as possible to keep its

options open, it found East Asian countries the most enthusiastic potential partners. The China

rivalry factor - a sense of rivalry felt by India towards China and its successful push for closer

economic ties with Southeast Asia - initially figured prominently in India’s push towards

ASEAN. India was compelled to counter China’s push into the rest of Asia with moves of its

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own. The Bay of Bengal Initiative for Multi-Sectoral Technical & Economic Cooperation

(BIMSTEC) and the Mekong-Ganga Cooperation (MGC), for instance, are regional cooperation

agreements supported by India. Part of their initial purpose was not only to exclude China’s

participation, but also to counter its lead in the Greater Mekong Sub region (GMS) programme,

which also involves Cambodia, Laos, Myanmar and Vietnam (CLMV) and in the development

of the sub-region.

15. The Road Ahead. Connectivity has been the core agenda item in most of the India -

ASEAN meetings and also during the seven Delhi Dialogues (2009-2016), which was meant to

enhance interaction at Track I, 1.5 and Track II levels between India and the ASEAN nations.

However, there has been a perceptible decline in the participation and representation from

ASEAN countries owing to the lack of forward movement and the stymied progress in terms of

connectivity, investment and trade. This can be stated because of the near identical declarations

during the post Delhi Dialogue (DD) process in the first five years of the dialogue process.

However, in the last few years (2015-2017), the agenda has become more regional security and

business oriented, addressing cooperation through joint ventures, small and medium-sized

enterprises and highlighting core regional security issues. India’s approach to promote

connectivity with ASEAN in terms of physical connectivity through highways and maritime

connectivity were relatively slow from 2003-2105, as India could not complete the trilateral

highway project (India-Myanmar-Thailand). Furthermore, the Kaladan multimodal project did

not get the required attention. This can be attributed to the lack of financial resources and

problems in getting a coordinated response from both the Myanmar and Thailand governments.

With the declaration of the third edition of the India - ASEAN Plan of Action 2016-2020,

envisaged by Prime Minister Modi during the ASEAN summit meeting in 2016, he reiterated

that out of 130 activities which were listed, India had implemented 54 listed objectives. There

has been palpable momentum in achieving the set targets as envisaged in the Plan of Action.

This kind of outcome-based approach is definitely going to galvanise and accelerate the process

of integration of the societies and business communities.

16. For India, both physical and digital connectivity as well as enhancing science and

technology cooperation have been the core areas of collaboration with ASEAN nations. India’s

strategic partnership with the institution also lays stress on economic, cultural and institutional

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collaboration at all levels. Between India and ASEAN, the defence industry collaboration needs

to be explored, as this will create synergies and also promote better understanding. The CLMV

countries, which have a huge potential with regard to economic development, manufacturing and

investment, have been the focus of India’s cooperation with the ASEAN region. This could be

fathomed from the fact that India has tried to reinvent the potential of the region through the

Mekong India Economic Corridor (MIEC), which is seen as a critical part of India - ASEAN

connectivity. The India & ASEAN Agreement on Maritime Transport needs regular appraisal

and the Regional Air Services Arrangement needs further discussion so that reciprocal facilities

may be extended. Given the fact that among the developing countries, progress in research and

development has been slow and there is a paucity of funds, there is a need for conducting joint

research and collaboration between scientific institutions. Recognising this deficit in R&D, India

has enhanced the Science and Technology Development Fund. It has been increased from US$1

million to US$5 million. The need for innovation and improvisation in technology to sustain

economic growth and preserve demand requires new innovative cooperative ideas, such as the

ASEAN - India Innovation Platform.

17. India has always adopted a relatively guarded stance on regional security issues within

ASEAN forums. India needs to look into a proposed framework agreement between India and

ASEAN on security cooperation. The India - ASEAN Security Cooperation Agreement can draw

from the India - Japan Security Cooperation Agreement. The interests for both India and ASEAN

include maintaining peace, stability / security in Southeast Asia and in the larger East Asian

region; the objective being to defeat terrorism / extremism, intercept & counter weapons of mass

destruction and help in deterring any rogue states from carrying out any such activity which

jeopardises human life, national security and economic activity. The two sides need to develop a

comprehensive understanding on supporting a rules-based order, protecting the free flow of

commerce and freedom of navigation, so that these will not be obstructed by any particular

country. The two sides need to identify the importance of research and development in satellite,

space and other sophisticated technology to counter threats to security from both state and

non-state actors. India’s interaction with the ASEAN countries, both at the institutional and at the

bilateral level, has facilitated seamless exchanges of ideas, traditional knowledge, culture,

practices and developmental models. This has acted as a catalyst for discussions which are of

mutual concern and relative importance. Since the formation of ASEAN and in the last two and a

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half decades of India’s institutional participation in the ASEAN process, dividends in the form of

investment, trade and identified core areas of cooperation between business communities,

societies and people have been realised. Interestingly, whenever there has been an absence of an

agreed business, trade or investment agenda, then culture, diaspora, films, archaeology, religion

& arts have resonated in the discussions and provided a stable platform for future discussions.

Recommendations / Conclusion

18. ASEAN and SAARC. One of the prime reasons of the success of ASEAN is its

ability to continuously evolve, adapt and provide mechanisms for various declarations under

different charters with time bound milestones, something SAARC can follow. Second, if

bilateral issues are an impediment in the progress of SAARC, new mechanism needs to be

injected to discuss bilateral issues in the SAARC forum with an aim to find a common ground

for the Region’s growth. ASEAN provided the platform for deliberating on regional issues and

providing consensus solutions.

19. Today, three-and-a-half-years into his term, Indian Prime Minister Narendra Modi has

already visited eight out of 10 ASEAN countries and gives prime importance to the ASEAN -

India summit. This reflects the strategic importance of this region in India’s foreign policy

approach. The upgrade from the Look East to Act East policy, with the ASEAN at the core, was

among the earliest initiatives of the Modi government. Given the remarkable progress in ASEAN

- India engagement and the expanded cooperation across a wide range of areas, there are

certainly more opportunities to forge an even closer, strategic partnership for mutual

benefit. Considering the volatile and dynamic situation in Asia Pacific region and the state of

prevailing cooperation between India and ASEAN member states, it clearly emerges that both

parties will benefit immensely by enhancing cooperation. It is imperative on both India and

ASEAN member states to move forward.

20. Enhancing India ASEAN Connectivity.

(a) There is no direct physical connectivity between CLV and India, causing high cost of

transportation. Myanmar is the only country to share land border with India. Therefore,

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timely completion of connectivity projects in Myanmar is vital for stronger ASEAN - India

relations. ASEAN and India should exert more efforts and cooperation to effectively

implement the ASEAN - India Plan of Action 2010-2015. India should also attach high

priority to a quick implementation of the India - Myanmar - Thailand Trilateral Highway

and its extension to Lao PDR, Cambodia and Vietnam.

(b) Policy reforms can promote regional infrastructure development. Role of countries,

regional organisations and multilateral development institutions will be very important in

the development of economic corridors and needs to be encouraged.

21. Enhancing India ASEAN Economic Cooperation.

(a) Implementation of the ASEAN - India Free Trade Agreement (AIFTA) has received

positive response from the business community, as indicated by the significant increase of

total trade between ASEAN and India.

(b) However, the high costs of trading, cumbersome customs procedures, unfriendly rules

of origins and several other trade protectionism are the key barriers to economic integration

between ASEAN and India. The intensity of bilateral and multilateral cooperation on

tourism, trade and banking system between India and ASEAN is still low, compared with

potentials.

(c) India and ASEAN have to lay down the roadmap for strengthening monetary and

financial cooperation, which is a key component of economic integration.

22. Service Sector is a growing component of the GDP & trade in India and in several

ASEAN countries. The ASEAN is poised for integration in selected services sectors such as air

transport, information communication & technology and the ASEAN member countries are more

willing to liberalise services under a regional agreement than under the WTO. Since India has an

export interest in services, especially with respect to movement of professionals, liberalisation of

services can lead to higher market integration. To facilitate services exports, it is important to

address not only the market access barriers (such as liberalisation of the foreign investment), but

also the domestic regulations. In this context, mutual recognition agreements between

professional bodies in India and ASEAN will facilitate inter-firm mobility of professionals.

While countries, such as Singapore, are one of the biggest investor to India, there is scope for

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increasing the bilateral investment flows further, through a conducive, legal environment, better

infrastructure and regulation. India can attract more investment from ASEAN by offering the

ease of doing business, simplifying the tax regime and liberalising foreign direct investment

(FDI), among others.

23. Energy Security is a major challenge for India due to the shortage of resources. On the

contrary, ASEAN is a relatively resource-rich region. Thus, ASEAN and India have

complementarities in resource base in energy sector. Furthermore, India is engaged in energy

infrastructure development in a number of ASEAN countries. ASEAN is in the process of

developing region wide grid of natural gas pipelines / electricity transmission and India can be

connected to these grids. There are good prospects for collaboration in energy sector between

India and the ASEAN in both renewable and non-renewable resources.

24. Miscellaneous Issues.

(a) Some of the other suggestions are: the banking sector has to be technology driven, there

is need for development of corporate bond market, there should be cross-border

collaboration between the capital markets in ASEAN & India and ASEAN can collaborate

to penetrate the insurance market in India, among others.

(b) Science and technology cooperation between ASEAN and India should be further

enhanced. India should take keen interest to cooperate with ASEAN, especially the poorer

ASEAN countries, in capacity-building projects in areas like information technology,

agriculture and space. These will help to deepen the cooperation between India and

ASEAN in the area of science and technology.

(c) India and ASEAN can cooperate in food security and food reserves. More focus should

also be on on strengthening cultural linkages through tourism and cooperation in the field of

education.

25. Socio - Cultural Cooperation. Moving away from the government - to - government

level interactions and more towards the people - to - people level would ensure more

commitment, longevity and sincerity. Movement of workers should not be limited to skilled

workers, as is currently agreed within ASEAN.

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26. Last, but not the least, it is important to note that the liberalisation under the AIFTA is lower

than many of the trade agreements signed by the ASEAN, which puts Indian businesses at a

comparative disadvantage vis-à-vis businesses from other countries with which ASEAN or its

members have a trade agreement. This is even worse for services agreement, where the

autonomous levels of domestic liberalisation has not been bound in the trade agreement. The low

level of commitments under trade agreements limit the benefits of liberalisation and, hence, there

is a need for greater liberalisation and market integration as India and ASEAN move towards

mega regional agreements. The policy-makers of India and ASEAN member states have to take

this into consideration as they outline their reform agenda and future strategic & economic

cooperation.

Bibliography

27. Books.

(a) Nagesh Kumar, Mukul G Asher, Rahul Sen, “India-ASEAN Economic Relations :

Meeting the Challenges of Globalisation”, 2006..

(b) Pankaj Jha, “India’s Defence Diplomacy in Southeast Asia”, 2011.

(c) K M Panikkar, “The Future of South-East Asia: An Indian View”, 2007.

(d) Raja C Mohan and Ted Osius, “Enhancing India - ASEAN Connectivity”, 2013.

(e) Vishal Sarin, “India - ASEAN Trade and Economic Relations”, 2016.

28. Journals and Other Sources.

(a) Rahul Sen and Mukul Asher, ISEAS & RIS Publication, 2006.

(b) ASEAN - India Development and Cooperation Report, 2016.

(c) Vision Statement ASEAN India Commemorative Summit.

(d) http://www.saarc-sec.org/