India, ASEAN look forward to FTA in services, investments

Addressing the plenary of the ASEAN-India Commemorative Summit to mark 20 years of India's partnership with the major regional bloc, Manmohan Singh said the FTA in services and investments "represents a valuable milestone in our relationship".

He stressed that their "shared values, convergent world views and similarities in approaches to the region should help us make the India-ASEAN relationship more comprehensive and elevate it to a Strategic Partnership for the next decade and beyond".

Remarking that the India-ASEAN engagement had begun with a strong economic emphasis but has "also become increasingly strategic in its content", Manmohan Singh said that the "political dialogue between the two has grown, our consultations in regional forums have intensified, and our defence and counter-terrorism cooperation have expanded".

 

He said the partnership between India and the bloc is important not only historically but because their "future is inter-linked and a stable, secure and prosperous Indo-Pacific region is crucial for our own progress and prosperity. There is, therefore, mutual benefit in these aspects of our engagement".

The statement assumes importance in the wake of China's increasing assertiveness in the South China Sea and many countries of the East Asia region seeking a code of conduct for the use of the sea, a major maritime trading point.

The prime minister said the FTA in goods helped trade grow by 41 percent in 2011-12 and the two-way flows in investments also grew rapidly to reach $43 billion over the past decade.

He said improved connectivity would lead to expanded commerce. "I am optimistic that our trade will exceed $100 billion by 2015 and we should aim for the milestone of $200 billion ten years from now."

India and ASEAN currently have a two-way trade of $80 billion.

India became a sectoral dialogue partner of the grouping in 1992 and was elevated to full dialogue partner in 1995 in recognition of the country's rising stature and economic potential. Since 2002, the two sides have been holding annual summits.