India – Asean: Trade Relation Analysis and Its Exclusion

Abstract

The trade relations between India and the Association of Southeast Asian Nations (ASEAN) have developed drastically in the past thirty years and graduated through the low economic interactions to strategic alliances in the framework of agreements such as tSShe India-ASEAN Free Trade Agreement (AIFTA). Even though India is actively participating in ASEAN, the choice to leave the Regional Comprehensive Economic Partnership (RCEP) has cast doubt on its trade policy and integration with the region. The paper provides an overview of the historical evolution of India-ASEAN trade, the effect of AIFTA on bilateral trade flows, why India was not offered membership in RCEP, and the overall implication of this to the Indian economic positioning. The analysis also brings out effects specific to the sector and gives policy suggestions that could increase the involvement of India in the global trade structure with the ASEAN.