ASEAN FTA & ITS SIGNNIFICANCE FOR INDIAN GLOBAL TRADE

PRESENTED BY SUDIP
MITRA
(PGDM-ABPM
53)
ASEAN FTA & ITS SIGNNIFICANCE
FOR
INDIAN
GLOBAL
TRADE
PRESENTED BY SUDIP MITRA (PGDM-ABPM 53)

INTRODUCTION

The Association of Southeast Asian Nations (ASEAN) - India FTA (AIFTA) was inked on
August 13, 2009 in Bangkok
Became effective from January 01, 2010
It is a Look East Policy for India
Why do we need FTA?
Disadvantages of free trade
1. Increased production
2. Production efficiencies
3. Benefits to consumers
4. Foreign exchange gains
5. Employment
6. Economic growth:

1. structural unemployment may occur in

the short term
2. Increased domestic economic instability
3. New industries may find it difficult
4. Free trade can lead to pollution

imeline of India-ASEAN relations

1990
1992
1996
2002

India starts engaging with ASEAN, part of Look East Policy.

India becomes a sectoral dialogue partner of ASEAN
India becomes full dialogue partner of ASEAN
India starts having annual summits with ASEAN

2003

India accedes to the Treaty of Amity and Cooperation in Southeast Asia (TAC)India signs counterterrorism declaration with ASEAN.

2009
2010

2012

2014

FTA in goods signed

This established Free Trade Area established between India-ASEAN.

FTA in goods becomes effective

20th Anniversary of ASEAN-India Dialogue.

ASEAN India Commemorative Summit is held.

Now India becomes a strategic partner of ASEAN

FTA* in services and investment- talks concluded

FTA in services and investment signed- by all ASEAN nations with India. Except Philippines.

Why ASEAN important for India?

1) Strategically
2) Energy
3) Economy
4) For Indian States

Facilitate the moment of manpower and investment

Benefits of FTA in services and investment

Reducing our trade deficit with ASEAN

Boost the trade between India and ASEAN to

$100

billion by

2015.

Provides joint review, dispute settlement and other mechanisms to iron out
problems.
This will be a stepping stone in moving towards the regional comprehensive
economic partnership (RCEP) pact.
RCEP is to be signed between ASEAN and its six
Australia, China, India, Japan, South Korea and New Zealand.
The agreement will also facilitate investments in both regions

estments between India and ASEAN countrie

1) Singapore

Indian investors want to ASEAN investors want to enter India

2) Malaysia

enter ASEAN for

for

3) Thailand

1. IT

1. construction services

4) Indonesia

2. automobiles

2. Transportation services.

5) Myanmar

3. engineering

3. engineering services

6) Vietnam

4. Pharmaceuticals

4. shipping

7) Philippines
8) Cambodia

conclusion
Opening up south East
Asian market
Economic integration
Compete with china
Gain support from Asean
countries