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Group No : 3 Priyank Gala : 66 Rishin Ashar : 73 Vivek Sahasrabudhe : 99 Shariq Khan : 102 Fahad Bilal : 103 Ashutosh Thote

: 111

The Association of Southeast Asian Nations is a geo-political and economic organization of ten countries located in Southeast ASIA, Formed on 8 August 1967. Its a free trade block. There are ten Members countries include

Myanmar Laos Thailand Malaysia Singapore Vietnam Philippines Cambodia Brunei Indonesia

The acceleration of economic growth, Trade Social progress, Cultural development among its members The protection of the peace and stability of the region To provide opportunities for member countries to discuss differences peacefully

ASEAN has Area of 4.46 million km 3% of the total land area of Earth 8.8% of the world population Its combined nominal GDP has grown to US$1.8 trillion. If ASEAN was a single entity, it would rank as the ninth largest economy in the world.

India became a sectoral dialogue partner of ASEAN in 1992 India and ASEAN have been holding summitlevel meetings on an annual basis since 2002. In August 2009, India signed a Free Trade Agreement (FTA) with the ASEAN members.

ASEAN member countries and India will lift import tariffs on more than 80 per cent of traded products. India and ASEAN are currently negotiating agreements on trade in services and investment, teaching, nursing, architecture, chartered accountancy and medicine, telecom, IT and banking network

All participating countries are following democracy. Economic reforms took place. Potential of growth Indias inclusion into the Group of Twenty Economies (G-20) has boosted its image in this region.

India has higher growth comparatively and its positive effects will spill to other partners East Asia manufacturing expertise, Indiasoftware & service expertise. So combination will be strong. India can prove human resource base in coming years as they are facing demographic boon phase.

Strategic geographic position. India shares land and maritime borders with Myanmar, Indonesia and Thailand. The vital commercial sea lanes between West Asia and South East Asia. Balance against Chinas increasing power. Indias Increasing foreign Exchange Reserves.

India needs to attract foreign capital and direct investment from abroad and the ASEAN countries are a good resource for them. The stability in foreign exchange prices by The development of an Asian Bond market. India is looking towards ASEAN to gain expertise in the development of tourism infrastructure and other related services

India needs expertise in Port Management and Port Development domain. Collective efforts in setting up foreign universities .

Trade Export to ASIAN Imports from India

2010-11 (Apr Dec) 18,189.69 21,175.34

% Share 10.6183 8.5681

(In mn.US$)

Contribution of ASEAN in Indian Trade

9.15%

Trade With ASEAN Countries

90.85%

Trade with rest of the world

(Indias Imports)
Country INDONESIA 2010-11 (Apr-Dec) 6,774.27 %Share 2.7411

(Indias Export)
2010-11 (Apr-Dec) 3,842.33 %Share 2.243

LAO PD RP
SINGAPORE THAILAND

0.15
5,077.59 3,023.65

0.0001
2.0545 1.2235

7.47
6,889.85 1,684.78

0.0044
4.022 0.9835

VIETNAM REP.
MALAYSIA BRUNEI CAMBODIA MYANMAR PHILIPPINES

767.62
4,285.46 130.47 5.94 781.83 328.36

0.3106
1.734 0.0528 0.0024 0.3164 0.1329

1,936.56
2,920.08 18.42 46.22 226.1 617.9

1.1305
1.7046 0.0108 0.027 0.132 0.3607

(In US$ MN.)

Singapore
Singapore 2nd largest FDI in India totalling US$ 2.4 billion in 2009-10 Singapore agree for CECA for next 5 years: Increase two-way flow of tourists, businessmen and professionals Expedite conclusion of mutual recognition agreements (MRAs) for dentistry, medical, nursing, architecture, accountancy and company secretary professionals on priority

Thailand
India exports to Thailand includes natural pearls, gems and jewels, residue and waste from food industries and organic chemicals India and Thailand are targeting bilateral trade worth US$ 12 billion by 2012. Thai govt. has eased in taxation for Indian firms to carry out business The major Indian groups doing business in Thailand include: Tata group (automobiles, Steel, software), Aditya Birla group (chemicals, textiles),Ranbaxy,Dabur, Lupin (pharmaceuticals), Bharti Airtel, NIIT, Punj-Lloyd etc, reflecting the diverse sectors of interest.

Malaysia
25th largest investor in India-US$ 252.97 million Indians play an important role in promoting tourism in Malaysia- 6,50,000 Indian tourist visited Malaysia in 2011. Indian biotech companies are increasingly looking at making investments in Malaysia 10-year tax holiday, duty exemptions, customised incentives for large investments, access to ASEAN markets through free trade agreements and no restrictions on equity.

Myanmar
Neighboring Country FDI inflows 9 million dollars. Exports to Myanmar totalled US$ 159.77 million( Pharmaceuticals, iron & steel) Myanmar has been a prominent partner in supplying natural gas.

Indonesia
The main aim is Intelligence sharing. India has a lead in Information Technology. Many South East Asians are not only interested in our IITs and IIMs but also want campuses opened in places like Jakarta, Bali

Philippines

Vietnam

Signed a pact on Agricultural Cooperation. Philippines government purchases military equipments from India. Exports 1.7 billion dollar growing 20% India supported Vietnam's independence from France, opposed U.S. involvement in the war and supported unification of Vietnam. Vietnam, India Boost Naval Ties to Counter China Availability of cheap labour force in Vietnam

Brunei, Laos

Cambodia

Assisting Brunei in Satellite launching for climate control. India will be building Air- force academy in Laos. Banking facilities are offered by PSU Banks to Cambodia by opening up branches in its capital.

Indias Image problem- ASEAN businesses perceive entry barriers to India to be higher than those to China, due to which India feels ASEAN is a lot closer to China than to India in terms of cultural affinity, managerial style and business operation Foreign direct investment has not played as significant a role in Indias economic development as it has in Chinas; Indias policy on FDI has been more restrictive

Inefficient bureaucratic processes ASEAN also feels confused by Indias political system of central and state governments that often give different interpretations to trade agreements Different economic structures and degrees of openness ASEAN economies are more open, relying heavily on imports of raw materials and capital as production inputs, while the Indian economy relies more on domestic inputs

ASEAN is planning for inclusion of China, Japan, and South Korea as it will be ASEAN+3. ASEAN+ 6 would be including India, Australia and New Zealand ASEAN countries may choose regional common currency to fight with UD$ and GBP, EURO. Common currencys purpose is to help stabilize the region's financial markets.

Mr. Anand Sharma (Minister of Indian Trade and commerce ) has been taking initiative to have closer ties with ASEAN as, It would allow duty free import and export of 4,000 products mainly steel, textiles, sugar, tobacco for eight years; ASEAN and India requires assistance of each other for Growth & Development.

www.wto.org www.ibef.com www.asean.org