08 Apr Asean India Trade In Goods Agreement Upsc
Countries have also agreed to launch a review of the ASEAN-India Product Trade Agreement to make it more business-friendly, simpler and easier for businesses to trade. In order to mitigate losses resulting from the early stages of trade, the Indian government must be able to effectively redistribute some of the wealth to industries that are suffering from increased competition with ASEAN markets.  In this way, india`s Welfare Gains Package would increase and India would ultimately benefit from trade with ASEAN. At the second ASEAN-India Summit in 2003, the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation was signed by the heads of state and government of ASEAN and India. The framework agreement provided a solid basis for the eventual establishment of an ASEAN-India Regional Trade and Investment Area (RTIA), including free trade agreements with goods, services and investments. The signing of the ASEAN-India trade agreement paves the way for the creation of one of the world`s largest free trade agreements – a market of nearly 1.8 billion people with a total GDP of $2.8 trillion. Under the ASEAN-India Free Trade Agreement, more than 90% of the products traded between the two dynamic regions, including so-called “special” products, such as palm oil (raw and refined), coffee, black tea and pepper, are filled with tariffs. Tariffs for more than 4,000 product lines will not be abolished until 2016 at the earliest. In 2008, the total volume of ASEAN-India trade was $47.5 billion. ASEAN`s exports to India amounted to $30.1 billion , a 21.1% increase over 2007. ASEAN imports from India amounted to $17.4 billion , a 40.2 per cent increase over 2006. With regard to foreign direct investment (FDI), India`s inflow to ASEAN Member States amounted to USD 476.8 million in 2008, or 0.8% of the region`s total. India`s total direct investment in ASEAN amounted to $1.3 billion between 2000 and 2008.
The trade and investment statistics of ASEAN`s dialogue partners can be accessed by www.asean.org/22122.htm. The ASEAN-India Free Trade Area (AIFTA) is a free trade area between the ten member countries of the Association of South Asian Nations (ASEAN) and India.