India-Asean Expo and Summit

• 22 Feb 2019

Recently the Minister of Commerce & Industry inaugurated the 4^th India-ASEAN Expo and Summit 2019 in New Delhi.

• It is organised by the Department of Commerce in collaboration with industry body Federation of Indian Chambers of Commerce & Industry (FICCI).

Federation of Indian Chambers of Commerce & Industry (FICCI)

• FICCI is a non-government, not-for-profit organisation established in 1927.
• It is the largest and oldest apex business organisation in India whose history is closely interwoven with India's struggle for independence, its industrialization, and its emergence as one of the most rapidly growing global economies.

• The Summit is a platform for the policy makers, industry captains and business leaders to come together and forge a common vision for India and ASEAN’s mutual growth and progress.
• The exposition will showcase the best initiatives of the business and industry from India and ASEAN countries across various sectors of mutual cooperation such as Infrastructure, Manufacturing, Manufacturing & Engineering, Information and Communications Technology (ICT), healthcare, etc.
• The Summit is a testimony of India’s dedicated efforts towards Act East policy.

India and ASEAN

• India-ASEAN trade and investment relations have been growing steadily, with ASEAN being the second largest trading partner of India,after China,with a total bilateral merchandise trade of USD 81.33 billion, i.e. 10.58% in India’s overall trade.
• India and ASEAN represent fast moving economies.
  • According to the recently published United Nations’ World Economic Situation and Prospects Report 2019, India and ASEAN are set to outpace the global growth (3.0 % in 2019).
• India continues to be the fastest growing major economy and is expected to grow at 7.2% in 2019 and ASEAN at 5.2%.
• This is a manifestation of the new emerging world economic order, wherein India and ASEAN have a significant place.
• India currently is working with ASEAN on multiple connectivity projects, through land, water, and air. E.g.:
  • India-Myanmar-Thailand Highway, Kaladan Multinational Transit Transport Project,
  • Project Development Fund for CLMV countries ( Cambodia, Laos, Myanmar and Vietnam).
• ASEAN remains central to the economic integration of the Indo-Pacific region through Regional Comprehensive Economic Partnership (RCEP).

Challenges

• Both sides need to explore opportunities through connectivity projects in order to remove physical impediments to trade and further integrate the two regions for better economic and trade relations.
• Increasing the rate of technology adoption and providing financing mechanisms is another challenge to expand growth.