Unveiling a roadmap to boost economic ties, India today pledged to sign an agreement with the 10-member ASEAN bloc on services and investment by this year end and to reach an accord on FTA by next year. The 11th ASEAN-India Summit, attended by Heads of Government of the member states and Prime Minister Manmohan Singh, welcomed India's 'Look East' policy and the decision to set up a separate mission for the Association of South East Asian Nations (ASEAN) and a full time resident Ambassador for the region.
Addressing the summit, Singh said that India was ready to sign an FTA with ASEAN on services and investment to boost their bilateral trade to USD 100 billion by 2015, from USD 76 billion last year. "India stands ready for the signature of the India-ASEAN Free Trade Agreement on Services and Investment by the end of this year and its early implementation. "This will complement our Agreement on Goods and bolster our economic partnership," he said, adding that initiatives have also been taken by the Federation of Indian Chambers of Commerce and Industry (FICCI) to revitalise the ASEAN-India Business Council and to set up an ASEAN-India Trade and Investment Centre.
In the chairman's statement, ASEAN members said they were heartened to note that bilateral trade surpassed the target of USD 70 billion and reached 76 billion. "We (ASEAN) look forward to "signing the ASEAN-India Trade in Services and Investment Agreement by the end of 2013 and its operationalisation by July 2014. We note with satisfaction the progress of negotiations on the Regional Comprehensive Economic Partnership (RCEP) which would build upon the ASEAN+1 Free Trade Agreements including the ASEAN-India FTA."
"We acknowledge that the RCEP recognises ASEAN Centrality in the emerging regional economic architecture and contribute to economic integration, equitable economic development and strengthening economic cooperation among participating countries In this regard, we looked forward to its timely conclusion by 2015," the statement said.
The secretariat for ASEAN, a ten-member bloc of countries including Brunei, Indonesia, Malaysia, Myanmar, Singapore, Thailand and Vietnam, is based in Jakarta.
Announcing a separate mission for ASEAN countries, Singh said, "In keeping with our substantial achievements, the recent elevation of our ties to a strategic partnership and the rich potential of our cooperation, I feel it would be appropriate for me to take this opportunity to announce that India will soon set up a separate mission to the ASEAN in Jakarta with a full time resident Ambassador." He said India-ASEAN engagement has reached the threshold of the third decade and both sides have established a comprehensive agenda of cooperation and a wide-ranging framework to pursue it.
The ASEAN members also welcomed India's announcement of a separate mission for the region as an illustration of the intensification of the ASEAN-India strategic partnership. Singh said that all the "countries have equal stakes in the security and prosperity of our shared Asian neighbourhood". "The global economic crisis and turmoil in different parts of the world underscore the salience of our robust partnership. The scope of India's engagement with East and Southeast Asia has grown steadily in the last two decades. We seek to promote not only mutually beneficial bilateral relations, but also to work institutionally with regional partners and foster a climate that is conducive to stability, security and economic development in our region," he added.
The Prime Minister said that ASEAN has paved way for a great level of "cooperation and integration, not only among themselves, but also in the broader region. "For India, it is an article of faith of our Look-East policy that ASEAN must remain central to the future evolution of regional mechanisms, which must be open and inclusive. We share your vision and aspirations for the region and we applaud your march towards an ASEAN Economic Community in 2015," he added. "These measures will contribute to stronger trade and investment flows between us," Singh said, while expressing confidence in meeting the target of USD 100 billion India-ASEAN trade by 2015 and doubling that volume (to USD 200 billion) by 2022. Singh said that connectivity is a strategic priority in India-ASEAN relationships, while adding that the Tamu-Kalewa-Kalemyo sector of the India-Myanmar-Thailand Trilateral Highway was near its completion.
The first meeting between the ASEAN Connectivity Coordinating Committee and India took place this year. It has been decided to establish a Working Group on Soft Infrastructure along India's corridors of the connectivity.