US India Global Review 2018

4 US-INDIA GLOBAL REVIEW APRIL-JUNE 2018 L aying the cornerstone with its Look East Policy in 1990, India has tra- versed a long way strengthening its eco- nomic and socio-cultural relation- ship with Association of Southeast Asian Nations (ASEAN) at various milestones. As India commemo- rates its 25 years of ‘dialogue partnership’ with ASEAN, the country builds conducive invest- ment environment for multiple industries, including digital and creative. Background ASEAN and India with com- bined population of approximately 2 billion (26.6 per cent of global population) and combined Gross Domestic Product (GDP) of USD4.5 trillion (5.9 per cent of global GDP) present immense mutual investment opportuni- ties.01,02 The relationship between ASEAN and India began in 1992 and has grown steadily from sectoral dialogue partnership to summit-level partnership in 2002. At the second ASEAN-India summit held in 2003, ASEAN and India signed an ASEAN-India Framework Agreement on Comprehensive Economic Cooperation that served as a guidance to establish further agreements such as Trade in Goods Agreement, Trade in Services, and Investment Agreement as part of ASEAN- India Free Trade Area (AIFTA). Effective January 2010, the Trade in Goods Agreement came into force, wherein, ASEAN and India agreed to gradually reduce and eliminate duties on more than 90 per cent coverage of products traded between the regions over a period of time. Further in July 2015, ASEAN-India Trade in Services and Investment Agreement was initiated, which includes provisions on transparen- cy, domestic regulations and dis- pute settlement. The agreement also laid down policies to ensure fair and equitable treatment for investors. Trade and investment ASEAN is India’s second largest trading partner with a total trade value of USD71.7 billion in 2016–17, which has increased from USD56.2 billion in 2010–11, reflecting a Compound Annual The Prime Minister, Narendra Modi addressing the Plenary Session of ASEAN-India Commemorative Summit, in New Delhi on January 25, 2018. Photo: PIB ASEAN-India: Growing together ACTING EAST