India-ASEAN Economic Relations in the 21^(st) Century (Part I)

Abstract

The India-ASEAN FTA for goods was signed in 2009 and took effect (trade in goods) with 5 (Singapore, Malaysia, Brunei, Myanmar and Thailand) of the countries and India in January 2010. However, India was keen on the services deal as it did not gain much from the pact on goods due to already lower tariffs in the region. Here comes the question. Why India entered into this agreement expecting no significant gain? India did not sign the agreements in services and investment until September 2014. The two agreements came into force on July 1, this year (2015). Again, India later acknowledged that gains on the services front had not accrued. Against this background, the author is determined to explore FTA-centered India-ASEAN economic interactions in depth and to find out true reasons behind scene. It is natural to start looking into India`s motivations and goals first, followed by ASEAN`s perceptions of India and response and finally examining their bilateral economic relations and predicting future interactions.