India-ASEAN Trade Relations

Abstract

Regional Trading Blocs are established on the premise that free trade leads to greater efficiency and higher growth. Regional Trade Agreements vary widely, but the fundamental objective is to reduce or eliminate trade barriers between member countries in order to reap the benefits of increased economic co-operation and strengthen regional solidarity. It is considered to be especially vital for developing countries to form regional trading blocs in order to take advantage of globalisation and to protect their interests. The ASEAN-India partnership holds ample potential for a successful future. India understands that the ASEAN grouping consists of countries which have achieved significant development in the past 20 years. It is in its interest to establish beneficial linkages with the countries to benefit from their past experience and current standing. There is large potential in the synergies between its economy and that of the ASEAN countries and is keen to strengthen its economic ties with them ASEAN’s strategic location makes its stability crucial for India’s energy and economic security, and it looks to develop its influence in the region by forging vital ties with ASEAN. With large potential for India and ASEAN countries to develop trade relations, it is one of the primary areas of concentration on both sides. This paper studies the trade relationship among India and ASEAN in recent past and the benefits India & ASEAN going to get trading ties between two.

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Author Information
Raminder Pal Singh, Sbs State Technical Campus, Ptu, India
Sangeeta Arora, Dev Samaj College, Punjab University, India

• Category: International Economics

Posted by James Alexander Gordon

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