The 4th India-ASEAN Expo and Summit 2019 was recently inaugurated in New Delhi by the Minister of Commerce & Industry. The Department of Commerce, in partnership with the Federation of Indian Chambers of Commerce & Industry (FICCI), organized this momentous event.
Role of the Federation of Indian Chambers of Commerce & Industry
FICCI is a non-government, not-for-profit organization established in the year 1927. It has grown to become the largest and oldest apex business organization in India. The history of FICCI is intertwined with India’s independence struggle, its process of industrialization, and its emergence as one of the most rapidly growing global economies.
Purpose and Importance of the Summit
The Summit offers a platform for policy makers, industry leaders, and business magnates to come together and form a shared vision for mutual growth and progress between India and ASEAN. It showcases the finest initiatives taken up by businesses and industries from India and ASEAN countries across various sectors like Infrastructure, Manufacturing, Engineering, Information and Communications Technology (ICT), healthcare, etc.
This Summit symbolizes India’s dedicated efforts towards the Act East policy.
Economic Relations between India and ASEAN
Trade and investment relationships between India and ASEAN have been improving steadily. ASEAN is the second largest trading partner for India after China, with a bilateral merchandise trade total of USD 81.33 billion, which makes up 10.58% of India’s overall trade.
Both India and ASEAN are fast growing counterparts and are set to outperform the global growth (3.0 % in 2019) according to the United Nations’ World Economic Situation and Prospects Report 2019. India’s economy is projected to grow at 7.2% and ASEAN at 5.2% in 2019.
| Country/Region | Estimated Growth Rate in 2019 |
|---|---|
| India | 7.2% |
| ASEAN | 5.2% |
| Global Average | 3.0% |
India and ASEAN’s impressive growth rates mark a significant shift in the world economic order, highlighting their crucial roles in the global economy.
Connectivity projects between India and ASEAN
India is currently collaborating with ASEAN on numerous connectivity projects through land, water, and air. These projects include the India-Myanmar-Thailand Highway, Kaladan Multinational Transit Transport Project, and the Project Development Fund for CLMV countries (Cambodia, Laos, Myanmar, and Vietnam).
ASEAN remains paramount to the economic integration of the Indo-Pacific region through the Regional Comprehensive Economic Partnership (RCEP).
Challenges Ahead
Key challenges include exploring opportunities through these connectivity projects, physically removing trade barriers, and integrating the two regions for improved economic and trade relations. It’s also important to increase technology adoption rates and establish financing mechanisms to foster wider growth.
