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    ASEAN - ARTICLE FOR CIVIL SERVICES COACHING IN CHANDIGARH
    ASEAN & India’s ‘Act East’ Policy

    Association of Southeast Asian Nations

    • [] Formed on 8 August 1967 in Bangkok as an outcome of Bangkok Declaration
    • [] Political and economic organization of ten countries located in Southeast Asia
    • [] Aims include accelerating economic growth,  social progress, socio-cultural evolution among its members, protection of regional peace & stability, and opportunities for member countries to discuss differences peacefully
    • [] Membership - 10 States & 2 Observers - Timor-Leste & Papua New-Guinea
    • [] Myanmar, Thailand, Laos, Vietnam, Cambodia, Singapore, Malaysia, Indonesia, Philippines, Brunei
    •  

    ASEAN -- Headquarters @ Jakarta, Indonesia

    • Sec. General – “Lê Lương Minh” & Current ASEAN Chair – Malaysia
    • GDP (PPP) --  US$ 7.6tn
    • 27th ASEAN Summit was held in Kuala Lumpur, Malaysia, 18-22 November 2015
    •  

    ASEAN Way -- Principles followed by ASEAN

    • Principle of  Musyawarah (Deliberation) & Mufakat (Consensus)
    • Not to use force/ confrontation
    • Non-interfere in the internal matters of states
    • Informal discussion & minimal institutionalization
    •  

    ASEAN Free Trade Area (AFTA)

    • Trade Bloc agreement by the member countries supporting local manufacturing in all ASEAN countries
    • To increase ASEAN's competitive edge as a production base in the world market
    • To attract more foreign direct investment (FDI) to ASEAN.
    •  

    ASEAN  Plus Three (APT)

    • [] Includes ASEAN Countries along with China, Japan & South Korea
    • [] Constituted in 1997 for coordination & cooperation between countries
    • [] Meeting held during each ASEAN summit
    •  

    ASEAN Plus Six -- APT along with India, Australia & New Zealand

    Strait of Malacca

    • It is a narrow, 805 km (500 mi) stretch of water between the Peninsular Malaysia and the Indonesian island of Sumatra
    • Over 94,000 vessels pass through the strait per year, carrying about one-quarter of the world's traded goods
    • About a quarter of all oil carried by sea passes through the strait, mainly from Persian Gulf suppliers to Asian markets – 15.2 mn barrels per day
    • Malaccamax -- largest size of ship capable of fitting through the 25-metre-deep (82 ft) Strait of Malacca
    •  

    India-ASEAN Relation: ‘Look East’ Policy

    • [] Combined Population - ~ 1.8 bn (1/4th of world’s population)
    • [] Combined GDP - ~ US $10 tn
    • [] Two-way Investment - US $40 bn in past decade
    • [] India-ASEAN Trade - Expectation of US $ 200bn by 2022
    •  
    • [] India’s ‘Look East’ Policy
      • 1.  Developed and enacted during the governments of P.V. Narasimha Rao & Atal Bihari Vajpayee
      • 2. Cultivating extensive economic & strategic relations with ASEAN nations
      • 3. Giving emphasis of historic cultural and ideological links
      • 4. To create and expand regional markets for trade, investments and industrial development
      • 5. To build strategic and military cooperation with nations concerned by the expansion of China's economic and strategic influence
    • [] India had signed TAC Treaty (Treaty of Amity & Cooperation) with ASEAN in 2003

    • [] India-ASEAN Free Trade Agreement
      • Framework for deepening trade and investment ties
      • Tariff liberalization of over 90 percent of products traded between the two dynamic regions
      •  
    • [] India-ASEAN FTA in Goods
      • > Main products: – Metal Parts & Components, Electronic Components, Processed Fruits, Ceramics, Fertilizers, Coconut & Vegetable Oil and Chemicals like Fatty Alcohol & Refined Glycerin.
      • > Concerns:
      • 1. Cheaper palm oil from ASEAN is hurting local producers in Kerala
      • 2. Groundnut and Pepper farmers also suffering due to cheaper ASEAN imports
      • 3. Overall, the goods Imported from ASEAN nations increased but our Exports did not increase. Consequently, Trade Deficit between India-ASEAN widened
      •  
    • [] India-ASEAN FTA in Services & Investment
      • Follows ‘8 1 1’ Pattern: ASEAN Countries except Indonesia & Philippines
      • For Indonesia: Special terms because services sector is vital for the economy of Indonesia, & worries of local service sector getting hurt
      • For Philippines: Separate Special terms as ~50% of workforce of Philippines is in IT Sector
      •  

    India-ASEAN Relation: Importance

    • Strategic
      • [] ASEAN nations are at the intersections of major land & sea routes
      • [] Maritime boundary disputes between China & a number of ASEAN countries & they look towards India as a counterbalance against China
      • [] A stronger posturing at ASEAN increases India’s stature as a global power
      •  
    • Economic
      • [] In terms of income, India-ASEAN community is roughly the size of the EU
      • [] ASEAN is India’s fourth-largest trading partner after  EU,  US & China
      • [] India – ASEAN is slated to grow faster than the rest of the world due to a favorable demographic profile and growing market for goods and services
      • [] India-ASEAN linkage provides for large-scale movement of people, capital, ideas and creativity
      •  
    • Energy
      • [] ASEAN countries particularly Myanmar, Vietnam & Malaysia can potentially contribute to India’s energy security – Significant Oil & Natural Gas deposits
      • [] India and several ASEAN countries are net importers of hydrocarbon -- regional cooperation for financing exploration & drilling activities
      •  

    India’s ‘Act East’ Policy

    India’s ‘Act East’ Policy is proposed as a new Foreign Policy by PM Narendra Modi for ASEAN countries

    • To emphasize a more proactive role for India in the ASEAN region
    • A tool for forging strategic partnership and security cooperation with countries in the region in general and Vietnam & Japan in particular
    • A more action-oriented policy towards ASEAN nations

    Key Engagements:

    • Establishment of a special purpose vehicle for project financing
    • Building of Roads, Ports & Transport Infra (E.g.-- India-Myanmar-Thailand Trilateral Highway, Kaladan Transport Project etc.)
    • Building Information Highways
    • Inviting ASEAN countries to participate in India’s ongoing economic transformation
    • Emphasis on connecting North-Eastern part of India to the ASEAN Region for better  & rapid development  of the N-E region which can bring significant benefits to India