Why India Needs This Pact ?(ASEAN RELATED)

Why India Needs This Pact ?

1. China has already signed a pact with ASEAN and this has dramatically increased the exports of China.
2. Since India's trade agreements with European Union will take a long time, to boost her exports India needs to sign this kind of bilateral agreements.
3. ASEAN has 600 million people and its GDP is about the same as India's ( India is a $1.1 trillion Economy), so the FTA will open up a substantial market, not far from home, for Indian exporters.
4. ASEAN is also a critical component in the country's "Look East" policy, and there is already a regrettable history of failure to meet past FTA signing deadlines.
5. China is already active in the ,market and we can't afford any economically set back by not signing this agreement.
6. The FTA is said to have the potential to multiply bilateral trade between India and ASEAN. India has several compulsions under its ‘Look East’ policy to be in good terms with its southeastern neighbours which are close to China.
7. In 2008, bilateral trade between China and ASEAN totalled US$231.1 billion, up 14 percent from 2007.

Asean

What is ASEAN?
Association of Southeast Asian Nations is a geo-political and economic organization of 10 countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Membership has expanded since then to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. So there are 10 economies in ASEAN.

Aims of ASEAN:

1. Acceleration of economic growth,
2. Social progress,
3. Cultural development among its members,
4. The protection of the peace and stability of the region,
5. To provide opportunities for member countries to discuss differences peacefully.
   
   
   ASEAN is a area with combined nominal GDP of USD $1.4 trillion in 2008.