Asean and East Asia Could Be India's New Gold Mine

As East Asian economies begin to emerge from theIndia's interaction with ASEAN in the cold war era can
economic shadow of the 1997 crisis, there is a clearbe described as a tale of missed opportunities. India
understanding that greater economic coordinationdeclined to get associated with ASEAN in the 1960s
among major Asian countries is essential to face thewhen full membership was offered even before the
globalization challenges.grouping was formed. The former Prime Minister of
If Asia has to strengthen her economic and politicalIndia Atal Bihari Vajpayee said in his address to the
weight in the world affairs, India has to be involvedInstitute of Diplomatic and Foreign Relations at Kuala
as an integral part of the Asia-wide cooperation. AsLumpur in may 2001, "India and ASEAN are on the
such closer cooperation among Japan, ASEAN, Southsame side of the socio-economic divide in the debate
Korea, India, and China would have far rangingon globalization. Opening up our national economies to
implications for the world.global markets cannot become a mantra at the cost
India has be more proficient at strategic economicof equitable development and social justice".
diplomacy and soft power skills simultaneously EastThe first India-ASEAN Business Summit was held at
Asia has to shed its cold war mind set and itsNew Delhi in October 2002. ASEAN-India annual trade
insularity to grasp win-win opportunities. India'sjumped 40.8 percent last year over 2003, from
growth strategy based on strong and increasinglyUS$12.5 billion (euro10.6 billion) to US$17.6 billion
globally competitive and networked domestic(euro14.96 billion). That marked its biggest-ever annual
companies could provide a balance for highly traderise, it's still tiny compared with ASEAN's US$136 billion
and FDI dependent East Asian economies.(euro115.61 billion) in annual trade with the United
With successful 4th India-ASEAN dialogue meeting atStates. As such there is a huge scope to expand it
Kuala Lumpur in December 2005 stage is set for afurther.
successful summit from the 14th of this monthDr Singh has strongly advocated the idea of a Free
between India and ASEAN at the Philippines to beTrade area (FTA) with ASEAN which was initiated by
followed by the East Asia Summit.Vajpayee hopefully in the coming summit this would
It is seen that the Look-East policy is being pursuedfinally materialized. An FTA with ASEAN will give India
aggressively and has started yielding results on thean opportunity to look beyond trade and to areas
economic, political and strategic fields. The policysuch as science and technology, information
initially started with courting ASEAN but now it hastechnology, biotechnology, space technology, tourism,
expanded to include other nations of the region suchand human resource development. India has offered
as China, Japan and Korea through the East Asiato eliminate tariffs for five ASEAN members-
Summit.Singapore, Malaysia, Indonesia, Thailand and Brunei- by
The Look East Policy of India started in 1992 had its2011. The new ASEAN members- Cambodia, Laos,
seeds in the end of the cold war, with the end ofMyanmar and Vietnam- will get time till 2016 to set
the former Soviet Union. In post liberalized India it isup FTAs with India.
more than just a foreign policy alternative as itWith Annual trade of India with China expected to
provided alternative development model too. Torise from the present $20 billion to $40 billion by 2010.
quote Prime Minister Man Mohan Singh "it was also aThe Indo-Japanese bilateral trade in 2003-04 stood at
strategic shift in India's vision of the world and India'sUS$ 4 bn growing by 18 per cent then what it was in
place in the evolving global economy".2002-03. So far as foreign direct investment (FDI) is
It is only since the beginning of this century, India hasconcerned, approvals of Japanese FDI in India during
given a big push to this policy by becoming a summitthe period 1991-2004 have been in the order of
level partner of ASEAN (2002), in forming theUS$3.2 billion accounting for around 4.8 per cent of
BIMSTEC and the Ganga Mekong Cooperation andtotal Indian approvals for all FDI.
now becoming a member of the East Asia SummitThus for India East Asia and ASEAN can be a gold
(EAS) in December 2005 and Shanghai co-operation.mine in future.