ASEAN and India concluded negotiations on free trade agreement
The Association of Southeast Asian Nations has begun its two-day summit in New Delhi. The occasion is to mark the 20th anniversary of the ASEAN -India Dialogue Relations under the theme of ASEAN India Partnership for Peace and Shared Prosperity.
Addressing the heads of States and Governments of the ASEAN, Indian Prime Minister Manmohan Singh said, ASEAN is key to peace and progress.
SB SINGH-ASEAN has shown the way for the entire region, building a regional mechanism of cooperation and consensus that has become a great force for peace and prosperity. It has also emerged as the principal architect and driver of economic and security structures and institutions that are emerging in the region
Even without being a full member of ASEAN, Indias importance has been increasing steadily. Now, the two sides decided to elevate their partnership to a strategic level.
With China dominating the region, Vietnam and Philippines have long been contesting Chinese claims over the large areas of South China Sea. The area is believed to be rich in oil and gas. The Chinese have already protested against the presence of Indian exploration companies in the region.The 10-member ASEAN grouping is also going to involve India in their maritime security.
SB- Unless India is that attractive to the Asean countries as China currently is I think their own dependence on China is going to be greater and this is going to be one of the realities as far as the region is concerned.
Trade was also an important part of this summit's agenda. India and Asean have finalised a free-trade agreement in services and investments.
Briefing newsmen, Indian Extenal Affairs Minister Salman Khurshid stated that ASEAN leaders welcomed the successful conclusion of the negotiation of India-ASEAN free Trade Agreement in services and investment.
SB Khurshid:-The signing of these agreements will facilitate further economic integration between ASEAN and Asia which is a very important objective .
India and ASEAN have set a bilateral trade target of US$100 billion by 2015. Two-way trade currently stands at $80 billion.
The two sides also agreed on a vision document laying out a roadmap for future cooperation across all sectors.
Analysts say that as India steps up it's efforts to engage actively in South East Asia it still has a long way to go before it can make a significant presence and will have to tread carefully without upsetting relations with China.