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A STUDY OF FREE TRADE AGREEMENT BETWEEN INDIA AND ASEANSUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION HONOURS INTERNATIONAL

Submitted by:VIVEK GOYAL 30800002

Supervisor:VISHAL SARIN SENIOR LECTURER

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (2010)

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CERTIFICATION/THESIS APPROVAL BY FACULTY ADVISORTO WHOMSOEVER IT MAY CONCERN

This

is

to

certify

that

the

project

report carried out

titled by

__________________________________________________

Mr.__________________________________,S/o_______________________________ has been accomplished under my guidance & supervision as a duly registered MBA studentof the Lovely Professional University, Phagwara. This project is being submittedby him/her in the partial fulfillment of the requirements for the award of theMaster of Business Administration Honours International from Lovely ProfessionalUniversity. His dissertation represents his original work and is worthy of consideration for the award of the degree of Master of Business Administration Honours International.

___________________________________ (Name & Signature of the Faculty Advisor) Date:

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DECLARATION OF AUTHENTICITY BY STUDENT

I, "

VIVEK GOYAL

, hereby declare that the work presented herein is genuine work

done originally by me and has not been published or submitted elsewhere for therequirement of a degree programme. Any literature, data or works done by othersand cited within this dissertation has been given due acknowledgement and listedin the reference section.

_______________________ (Student's name & Signature)

_ 30800002___ (Registration No.)

Date:__________________

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ACKNOWLEDGEMENTIt gives an immense pleasure to me to present this research paper, a written form of the practical experience I have undergone. The research paper on A STUDY OFFREE TRADE AGREEMENT BETWEEN INDIA AND ASEAN would not have seen the light of the day without the following people and their priceless support and cooperation.Hence I extend my gratitude to all of them. I am greatly indebted to them for taking great pains in guiding me. I would like to thank LOVELY PROFESSIONAL UNIVE

RSITY for giving me an opportunity of learning and contributing through this project. During the actual Research Paper, Mr. Vishal Sarin Project Guide, who setthe ball rolling for my project. He has been a source of inspiration through hisconstant guidance; personal interest; encouragement and help. I convey my sincere thanks to him. In spite of his busy schedule he always found time to guide methrough the project. I am also grateful to him for reposing confidence in my abilities and giving me the freedom to work on my project. Without his invaluablehelp I would not have been able to do justice to the project.

VIVEK GOYAL

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EXECUTIVE SUMMARYThis Project Is Based On The Free Trade Agreement Between India And Asean.It IsProcess A Process State Enter Into The Fta- Agreement.This Research Is Done In Order To Know Weateher The Trade Integration Is Profitable.This Integration FormsA Big Consumer Market Of $550 Millions, People Abundant Natural Resources, Skilled And Educated Labour Force Whch Help In Intra Asean Trade Growth.We Studied The Impact Of Regional Integration In ASEAN By Cheking The Level Of Trade Growth,

The Trade Intensity Amoung The Nation And FDI Inflows amonug Asean. The Descreptive Research Is Done To Achiveve Our Objective. The Secondary Data Ris Taken From Websites Like IMF,ADB( Asian Development Bank). The Data Is Then Often Used In Formula Of Export And Import Trade To Achivev The Objective Of The Research. The Intergration Indicators Data Base On Various Trade Parameters Like Import AndExport Growth, Trade Intensity, Trade Intensity Index is Anlaysied With Help ofTables And Graphs.we have observed that the intregration amoung ASEAN countrieshave made the economic gowth in all countries of ASEAN. It also help to enhancethe economic growth of each members country of ASEAN. the reason behind the high inflow of FDI amoung ASEAN members is liberal policy regime.

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OBJECTIVE OF STUDYAn attempts has being made to study the Free trade agreement between ASEAN and India. To know the relationship of Trade between between ASEAN members with partner India. Various performance level has being taken to study the Trade between India and ASEAN, Foreign Direct Investment and Economic Indicator. The main objective is to study the performance of Trade between ASEAN and India amoung the members of ASEAN countries with partner india. Sub Objective: To know the future pr

ospects of Trade in India with ASEAN countires. Other parts of research is the knowledge process where I had responsibility to let correspondent aware about theEconomic performance of International Business in case they are not aware.

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TABLE OF CONTENT

1. Introduction --------------------------------------------------------------------------------10 2. Research Methodology and Review of Literature --------------------------------- 11 3. India and ASEAN : A Study of Free Trade Agreement 2.1. Performance of Trade Indicators in India and ASEAN countries -- 22 2.2. FDI Performance in India and ASEAN countries --------------------- 32 2.3. Economic P

erformance in India and ASEAN : 2.3.1.Real Sector and Price ------------------------------------------- 36 2.3.2.External Sector -------------------------------------------------- 37 4. Finding and Suggestion ------------------------------------------------------------------- 38 Annexures References and Bibliography

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LIST OF FIGURES

PERFORMANCE TRADE INDICATOR OF INDIA AND ASEANFIGURE NO. 3.1.1 3.1.2 3.1.3 3.1.4. 3.1.5 3.1.6. 3.1.7 3.1.8 3.1.9 3.1.10 NAME OF CHARTS Export Intensity Index of ASEAN members with India Export Growth of ASEAN members with India Import Growth of ASEAN members with India Total Trade Growth of ASEAN members with India Trade Intensity Index of ASEAN members with India

Export Share of ASEAN members with India Import Share of ASEAN members with India Total Trade Share of ASEAN members with India Intra-Regional Trade Share of ASEAN members with India Trade Openess of ASEAN members with India PG.NO 22 23 2425 26 27 28 29 30 31

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LIST OF FIGURES

FDI PERFORMANCE OF INDIA AND ASEANFIGURE NO. 3.2.1 3.2.2 3.2.3 3.2.4. 3.2.5. NAME OF CHARTS FDI inflows CumulativeFDI Inflows FDI share Cumulative FDI share FDI Trade Openness PG.NO 32 32 34 3435

ECONOMIC PERFORMANCE OF INDIA AND ASEAN FIGURE NO. 3.3.1 NAME OF CHARTS Externalsector of ASEAN Members with India Real Sector and Price GDP Contribution Of members of ASEAN with India PG.NO 36

3.3.2

37

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1. INTRODUCTIONFree trade agreements (FTAs) have proved to be one of the best ways to open up foreign markets for exporters. FTA is an agreement made between two or more countries under which countries involved are given preferential market access. FTAs partner countries provide each other favorable treatment on trade, investment, provision of services and trade facilitation as well as economic and technical cooperation.1 Exporters in India will benefit from FTAs through preferential treatme

nt and market access. Exporters will also enjoy cost savings from elimination orreduction of customs duties and from mutual agreements, trade facilitating customs procedures and removal of regulations. FTAs also provide for easier entry forbusinessmen as well as more predictable terms for investment in the FTA partnercountry.2 The term Free Trade Agreement (FTA) is often there are large and increasing numbers of Free Trade Agreements (FTAs) being used to represent both negotiated, many of which feature far-reaching commitments on a broad range of regional trade. India had started giving this region due importance the foreign policy.India became a sectoral partner with ASEAN in 1992, a full dialogue partner in1995, a member of the ASEAN Regional Forum (ARF) in 1996, and a summit level partner (on par with China, Japan and Korea) in 2002.3 The Association of SoutheastAsian Nations (ASEAN) was established on 8 August 1967 in Bangkok, Thailand, wi

th the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand.4

_____________________________________ 1 http://ftAnnexureicrindiAnnexureorg/ongoing-negotiations/india-asean-ftAnnexurehtml 2 http://www.aseansec.org 3 http://www.aseansec.org 4 http://www.asean.org/about_ASEAN.html10

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1. REVIEW OF LITERATUREThe signing of the trade in goods agreement with the Association of South-East Asian Nations has reacted in India in FTA This is not completely unexpected as some of the south-east Asian countries have a much higher level of efficiency in these sectors as compared to IndiAnnexure This article studies the tariff schedule of India and does a preliminary evaluation of the ASEAN-India free trade agreement (FTA). Finally, in an increasingly integrated world, one should be careful

about signing FTAs even with other developing countries. Generally, south-southFTAs tend to suffer less from problems that plague the northsouth FTAs . But oneneeds to keep in mind that the ASEAN countries are one of the first recipientsof global relocated capital and foreign direct investment (FDI) has played a major role in promoting exports in these countries. Therefore, it is possible thatin many cases, the preferential tariff rates of the ASEAN-India FTA will actually help a firm from a developed country based in one of the south-east Asian countries. (C P Chandrasekhar and Jayati Ghosh. Parthapratim Pal , 2009). The numberof bilateral and regional free trade. agreements (FTAs) involving members of the Association of South East Asian Nations (ASEAN) is increasing.Offers an overview of agreements in which at least one ASEAN country participates. All of theseagreements seek the liberalization of trade in services, at a faster pace than w

hat is foreseen under the WTOs General Agreement on Trade in Services (GATS). themain findings of a research project that investigated some of these implications for five. ASEAN countries: Laos, Malaysia, the Philippines, Thailand, and Vietnam. In particular, for selected service sub-sectors and a number of criteria for rules of origin, national research studies in these countries simulated whichservice providers would or would not be eligible for preferences negotiated under an FTA Rules of origin have long been a prominent issue in the case of goods trade. As governments enter into negotiations to establish bilateral or regionalFTAs covering trade in services. For countries in the ASEAN region, this question applies at two levels. First, as reaffirmed by ASEAN Economic Ministers in August 2006, ASEAN countries are committed to establishing11

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free regional trade in services by 2015. Second, ASEAN as a whole has entered into services negotiations with China and additional negotiationswith Australia, Japan, Korea, India, and New Zealand may well be launched. (Carsten Fink World Bank, 2007). The WTO Doha Round and the Asia Pacific Economic Cooperation (APEC) forum, and mindful of free trade agreement (FTA) networks centered on the UnitedStates and Europe, Asian countries have joined the FTA game. By 2000, Asian countries had ratified 10 bilateral FTAs, and they are currently negotiating some 20

bilateral FTAs, many with non-Asian partners, including Australia, Canada, Chile, the European Union, India, and Qatar. China has been particularly active since 2000. It has completed three bilateral FTAs - Thailand in 2003 and Hong Kong and Macao in 2004 and is initiating another 17 bilateral and regional FTAs. However, a regional Asian economic led by China seems distant, even though China accounts for about 30 percent of regional GDP. (Hufbauer, Gary Clyde and Wong, Yee,2005). All three countries have little or no experience of aggreeing to and implementing extensive trade reforms within the context of reciprocally negotiated international trade agreements. In short, Brazil, China, and India have little orno track record of engaging in reciprocal trade liberalisation and, since thesethree emerging trading powers are taking centre stage in the WTO, the degree offuture support for the liberalisation function. It also examines some of the lo

nger-term implications of a multipolar World Trade Organization (WTO) for European policy-makers and role the European Union might play in the multilateral trading system in the years to come. To me there are at least four important challenges to be faced when thinking through the implications of a multipolar world trading system. The first challenge is of this new world have not been defined. Thesecond challenge, is that it is not immediately apparent what leadership meansin this context. third challenge concerns the question whose trade policy is theEU

s trade policy?. Finally, EU member states have acted more aggressively towards the European Commission. (Evenett, Simon, 2007).

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Monetary and Economic Department states that that significant complementaritiesin trade exist among these countries, most of them experience similar labour mobility is already present. These results point to the fact that the cost of adopting a single currency may be minimal, while huge benefits could accrue from enhanced trade. a strong trend towards regional trading blocs, the recent success ofthe euro has also prompted policymakers to look for other optimum currency areas (OCA). The integration of India with ASEAN is highly desirable. While present

levels of trade of China, India, Japan and Korea with ASEAN are small, there exists potential for trade among the ASEAN + 4 countries, which is calculated usingthe COS measure, developed by Linnemann (1966). Indias monetary integration witheast and Southeast Asia in particular the existence of the economic criteria for a currency union in AsiAnnexure There are significant complementarities in thetrade structure too, which suggest that these countries should work towards a Common Market. (Sweta C. Saxena , 2003). The cost, benefit, and implication of anassociation of southern asian nation (ASEAN) regional currency arrangement thatis assumed to culminate in a regional currency. On Economic criteria, ASEAN appears less suited for regional currency arrangement than Europe before the Maastricht treaty, although the difference is not large. He also says that the potential benefits and cost associated with the cuurency union for ASEAN in more detail

s .the precondition for a successful currency union, which focus what the experience of Europe implies for similar possible venture in ASEAN. thus, the ecnomiccriteria , the member of ASEAN appears to be less suited for currency union thanthose of EU. (Tamim Bayoumi International Monetary Fund (IMF) , 1999). The newdynamism is reflected in the fact that nearly every country is a member of an RTA, and on average every country belongs to six RTAs, variations across regions and levels of development. India has signed one RTA with a services chapter, namely, the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) . Asa pioneering attempt, there are expectations that the CECA experience would provide valuable inputs and serve as model of sorts for Indias future services negotiations. Research on the CECA therefore assumes an immediate relevance, especially with13

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reference to the fact that India is actively considering enlarging its engagement in services RTAs and embarking on the path of embedding a services chapter across the board in past, present and future FTAs. (Kulkarni, Parashar). The linksbetween ownership, innovation, and exports in electronics firms in three lateindustrializing developing countries (Peoples Republic of China (PRC), Thailand, andPhilippines), drawing on recent developments in applied international trade andinnovation and learning. The econometric results confirm the importance of fore

ign ownership and innovation in increasing the probability of exporting. Higherlevels of skills, managers education, and capital also matter in the Peoples Republic of China as well as accumulated experience in Thailand. Accordingly, technological effort in these countries mostly focuses on assimilating and using imported technologies rather than formal research and development by specialized engineers. (Ganeshan Wignaraja, 2008).

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RESEARCH METHODOLOGYIn Research Methodology of Free Trade Agreement However, there are many problemsethodology with this new technology. We presented step step-by-step proceduresto perform process step analysis for the problem in the international trade agreement. It shows that the proposed methodology is a useful tool f failure analysis in the problems. This method can also be for his applied to the related fieldsof failure or success analysis. 1.1. TRADE PERFORMANCE IN INDIA AND ASEAN ORMAN

CE 1.1.1. Trade Intensity Index : .1.1. The Ratio of Trade hare of a country/region to the share of world trade with a partner. A measure of trade relationshipamong partners is trade intensity. The Trade Intensity Index (TII) is used to determine whether the value of trade between two countries is greater or smaller than expected, on the basis of their importance in world trade. It is their defined as the share of one countrys exports going to a partner divided by the share of world exports going to the same partner. It is calculated as:

Where, tij is the dollar value of total trade of country i with country/region j, Tiw is the dollar value of the total trade of country i with the world, twj isthe dollar value of world trade with country j, and Tww is the dollar value ofworld trade.

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An index of more than one indicates that trade flow between countriess is largerthan one expected given their importance in world trade. 1.1.2 Export intensityindex index: The ratio of export share of a country to the share of world exports going to a partner. It he is calculated as:

Where, xij is the dollar value of exports of country i to country j, Xiw is thedollar value of the exports of country i to the world, xwj is the dollar value o

f world exports to country j, and Xww is the dollar value of world exports. An index of more than one indicates th trade flow between countries is larger than that expected given their importance in world trade. 1.1.3 Intra-Regional Trade Share Regional Share: The percentage of intra-regional trade to total trade of the region, calculated using exports regional datAnnexure It is calculated as:

Where, Xii is exports of region i to region i; Xiw is exports of region i to theworld, and Xwi is exports of world to region i. A higher share indicates a higher degree of s . dependency on regional trade.

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1.1.4. Total Trade Share : The percentage of trade with a partner to total tradeof a country. It is computed as the dollar value of total trade of country i with country j expressed as a percentage share of the dollar value of total tradeof country i with the world. A higher share indicates a higher degree of integration between partner countries. 1.1.5. Trade Openness : Measured by total tradeof a country expressed as a percentage of nominal Gross Domestic Product (GDP) in dollars. A higher value indicates a more open economy. 1.1.6. Export Growth :

The percentage change in the value of exports relative to the previous year. 1.1.7. Export Share : The percentage of exports going to a partner to total exportsof a country. It is computed as the dollar value of exports of country i to country j expressed as a percentage share of the dollar value of exports of countryi to the world. A higher share indicates a higher degree of integration betweenpartner countries. 1.1.8. Import Growth : The percentage change in the value ofimports relative to the previous year. 1.1.9. Import Share : The percentage ofimports from a partner to total imports of a country. It is computed as dollar value of imports of country i from country j expressed as a percentage share of the dollar value of imports of country i from the world. A higher share indicatesa higher degree of integration between partner countries.17

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1.1.10. Trade Growth The percentage change in the value of total trade relativeto the previous year. 1.2. FDI ( FOREIGN DIRECT INVESTMENT ) PERFORMANCE IN INDIA AND ASEAN. 1.2.1. Foreign Direct Investment (FDI) : Some countries may allow for subjective qualifications, but most foreign direct investment enterprises arebranches or subsidiaries that are wholly or majority owned by the nonresident,Components of direct investment capital transactions are recorded primarily on adirectional basis Subcomponents of direct investment are equity capital, reinve

sted earnings, and other capital related to intercompany debt. FDI flows with anegative sign indicate that at least one of the three subcomponents is negativeand not offset by positive amounts of the remaining components. These are instances of reverse investment or disinvestment. 1.2.2. Foreign Direct Investment (FDI) Inflows : Foreign capital reported as balance-of-payments net inflows. A higher volume of FDI indicates higher capital mobility and integration in the country. 1.3.3. Foreign Direct Investment (FDI) Share : The percentage of regional FDIinflows to total FDI from the investing country. It is calculated as the dollarvalue of FDI of country i to country j expressed as a percentage share of the dollar value of FDI of country i to the world. A higher share indicates a stronger preference for the region and a higher degree of integration.

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1.2.4. Cumulative Foreign Direct Investment (FDI) Inflows : The inclusive sum offoreign capital reported as balance-of-payments net inflows. A higher volume ofFDI indicates higher capital mobility and integration in the country. 1.2.5. Cumulative Foreign Direct Investment (FDI) Share : The percentage of regional FDIinflows to total FDI from the investing country. It is calculated as the dollarvalue of cumulative FDI of country i to country j expressed as a percentage share of the dollar value of cumulative FDI of country i to the world. A highshare i

ndicates a stronger preference for the country and a higher degree of integration. 1.2.6. FDI Openness : Measured by the dollar value of inward FDI stock of a country expressed as a percentage of its nominal GDP in dollars. A higher value indicates a more open economy.

____________________________________________ Note: FDI flows in the host economyby geographic origin are sourced from United Nations Conference on Trade and Development (UNCTAD). FDI outflows by destination are derived from the reported inflows. FDI inward stocks expressed as a percentage of GDP, as well as cross-border mergers and acquisition (M&A) sales and purchases are sourced from UNCTADs FDIOnline database.

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1.3 ECONOMIC PERORMANCE IN INDIA AND ASEAN 1.3.1. REAL SECTOR AND PRICE 1.3.1.1.Gross Domestic Investment : Gross Domestic Investment measures the total valueof gross fixed capital formation, changes in inventories and acquisitions less disposals of valuables for a unit or sector. 1.3.1.2. Gross Domestic Product : Gross Domestic Product (GDP) measures the value of final goods and services produced within a countrys borders during a given period. 1.3.1.3. Net Exports of Goodsand Non-Factor Services : Net Exports of Goods and Services is defined as expor

ts of goods and non-factor services less imports of goods and non-factor services using the export and import series defined above. 1.3.1.4. Private Consumption: Private consumption is the value of the consumption goods and services acquired by households, whether by purchase in general, or by transfer from governmentunits, and used by them for the satisfaction of their needs and wants. It is derived from their final consumption expenditure by adding the value of social transfers in kind receivable. 1.3.1.5. Public Consumption : Public Consumption refers to the final consumption expenditure of the government, which consists of expenditure, including imputed expenditure, incurred by general government on bothindividual consumption goods and services and collective consumption services.20

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1.3.2. EXTERNAL SECTOR 1.3.2.1. Net Foreign Direct Investment : Net Foreign Direct Investment refers to the difference between inflows of direct investments from nonresident investors to the reporting economy and outflows due to direct investment abroad. Direct investment is as defined by national authorities. 1.3.2.2.Net Portfolio Investment : Net Portfolio Investment refers to difference between inflows and outflows of portfolio investment flows. 1.3.2.3. Overall Balance of Payment Position : Overall Balance of Payment Position is a statistical statem

ent that systematically summarizes, for a specific period, the economic transactions of an economy with the rest of the world. It is the sum of the current account balance; capital and financial account balance; and net errors and omissions. 1.3.2.4. Total External Debt Outstanding : Total External Debt Outstanding isthe sum of bank loans, debt securities issued abroad, non-bank trade credits, multilateral claims, and official bilateral loans. Bank loans include loans from banks in 18 major industrialized countries and six offshore centers. Debt securities issued abroad refers to money market instruments, bonds, and notes issued byboth public and private sector borrowers. Official bilateral loans refer to concessional aid and other loans provided mainly for development purposes.

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3. INDIA AND ASEAN A STUDY OF FREE TRADE AGREEMENT3.1 PERFORMANCE TRADE INDICATOR IN INDIA AND ASEAN 3.1.1. EXPORT INTENSITY INDEXOF ASEAN MEMBER WITH INDIA. INDI Export Intensity Index of ASEAN member with India (Figure 3.1.1) Indicates the Trade India; .1.1) Between ASEAN with partner India from year 2005 to 2008. Here, Indonesia, Malaysia, Myanmar and Singapore has high degree Export Intensity with partner Indi But in India. Cambodia, Philippines and Vietnam there is lesser Export Intensity because the Value of and Trade

is less than 1.0. As outlined in Annexure 1.1

EXPORT INTENSITY INDEX14 12 10 8 6 2005 4 2 0 India With ASEAN India India India With India India India With 2006 2007 2008

VALUES OF TRADE

Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With India With With With COUNTRIES

Sources: Complied by Author ___________________________________________ ________

_______________________________________ Refer to Annexure 1.1.( Export IntensityIndex of ASEAN member with India) (

(Figure:3.1.1)

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3.1.2. EXPORT GROWTH OF ASEAN MEMBERS WITH INDIA Export Growth of ASEAN memberswith India (Figure 3.1.2) Indicates the trade India; ) between the ASEAN with partner India from year 2005 to 2008. There is no trade between Cambodia and Indiai.e 0 Export Growth, but there is a Negative Export with Philippines with Indiain year 2005, but In year 2008 trading between Vietnam with ppines India. Referto Annexure 1. nnexure 1.2.

EXPORT GROWTH350

300

250

VALUE OF TRADE

200

150

2005 2006

100

2007 2008

50

0 India -50 With ASEAN India India India With India India India With

Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With WithIndia With With COUNTRIES

Sources: Complied by Author _________________________________________ ________________________________________________ Refer to Annexure 1.2 ( Export Growth ofASEAN members with India xport India)

(Figure: 3.1.2)

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3.1.3. IMPORT GROWTH OF ASEAN MEMBERS WITH INDIA Import Growth of ASEAN memberswith India (Figure 3.1.3) Indicates the Trade India; .1.3) between the ASEAN with partner India from 2005 to 2009. Here, The Import in 2005 is high between Singapore with India, but there is a negative import between Indonesia with India i.e (- 4% ). In 2006 - 2007 the import growth is high between Cambodia with partner India. In 2008 i has high trade with Indonesia with India. As Outlined in it a. Annexure 1.3.

IMPORT GROWTH250

200

150 VALUE OF TRADE

100

2008 2007 2006

50

2005

0 India -50 With ASEAN India India India With India India India With


Sources: Complied by Author _______________________________ ______________________________________________ Refer to Annexure 1.3 ( Import Growth of ASEAN members with India) mport

(Figure: 3.1.3)

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3.1.4. TOTAL TRADE GROWTH OF ASEAN MEMBERS WITH INDIA Total Trade Growth of ASEAN members with India (Figure 3.1.4) Indicates the trade India; .1.4) between theASEAN with partner India from 2005 to 2009 also the trade possibility between two countries. In 2008 the trade is high with Vietnam with partner India. As in high Annexure 1.4.

TOTAL TRADE GROWTH

250

200

VALUE OF TRADE

150

100

2008 2007 2006 2005

50

0 India With ASEAN India India India With India India India With


Sources: Complied by Author _________________________________________ ________________________________________ Refer to Annexure 1.4 ( Total Trade Growth of ASEAN members with India )

(Figure:3.1.4)

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3.1.5. TRADE INTENSITY INDEX OF ASEAN MEMBERS WITH INDIATrade Intensity Index of ASEAN member with India (Figure 3.1.5) Indicates the Trade India; .1.5) between the ASEAN with partner India from 2005 to 2009. There is no trade in year 2009. In 2008 the trade is with Myanmar is high and lesser trade with Philippines and Cambodia. So, the total trade intensity is with tradingwith Myanmar. As in Annexure 1.5.

TRADE INTENSITY INDEX30

25

VALUE OF TRADE

20

15 2008 10 2007 2006 5 2005



Sources: Complied by Author ____________________________________________ Refer to Annexure 1.5 ( Trade Intensity Index of ASEAN members with India)

(Figure: 3.1.5)

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3.1.6. EXPORT SHARE OF ASEAN MEMBERS WITH INDIA Export Share of ASEAN members with India (Figure 3.1.6) Indicates the Trade between India; .1.6) the ASEAN withpartner India from 2005 to 2009. In 2006 to 2009 the trade is high degree of trade with Myanmar. So, there will be FTA between Myanmar and Indi Refer India. toAnnexure 1.6.

EXPORT SHARE

60

50

VALUR OF TRADE

40

30 2008 20 2007 2006 2005 10



Sources: Complied by Author ___________________________________________ _______________________________________________ Refer to Annexure 1.6 ( Export Share ofASEAN members with I India)

(Figure: 3.1.6)

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3.1.7. IMPORT SHARE OF ASEAN MEMBERS WITH INDIA Import Share of ASEAN members with India, (Figure 3.1.7). Indicates the Trade between the ASEAN with partner India from 2005 to 2009. Data Indicates that the trade between Myanmar have high with partner Indi i.e it has high Integration with partner India and India lowestIntegration is between the Cambodia and Phili Philippines. Refer to Annexure 1.7. nnexure 1.7

IMPORT SHARE16

14

12

VALUE OF TRADE

10

8 2008 2007 2006 4 2005

6

2



Sources: Complied by Author __________________________________________ ____________________________________________ Refer to Annexure 1.7 ( Import Share of ASEAN members with India)

(Figure: 3.1.7)

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3.1.8.

TOTAL TRADE SHARE OF ASEAN MEMBERS WITH INDIA .

Total Trade Share of ASEAN members with India, (Figure 3.1.8). Indicates the Trade between the ASEAN with partner India from 2005 to 2009. It shows the value oftotal import and export of ASEAN Countries with partner India i.e high Import a

nd Export between Myanmar with partner Indi Refer to annexure 1.8. India.

TOTAL TRADE SHARE12

10

8 VALUR OF TRADE

6 2005 4 2006 2007 2008 2



Sources: Complied by Author __________________________________________ ______________________________________________ Refer to Annexure 1.8 ( Total Trade Shareof ASEAN members with India)

(Figure: 3.1.8)

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3.1.9. INTRA REGIONAL TRADE SHARE OF ASEAN MEMBER WITH INDIA Intra Regional Trade Share of ASEAN members with India; (Figure 3.1.9) Indicates the .1.9) Intra Regional Trade Share between the ASEAN of 2008. In it Shows that the Intra Regional Share Of Total Export, Total Import and Total Trade is more in Myanmar. i.e high import and export in Myanmar. Refer to Annexure 1.9.

INTRA REGIONAL TRADE SHARE

70

60

50

VALUE OF TRADE

40 Intra ASEAN Share To Total Export 30 Intra ASEAN Share To Total Import IntraASEAN Share To Total Trade 20

10

0

COUNTIRES Sources: Complied by Author ___________________________________________ ______________________________________________ Refer to Annexure 1.9 (Intra Regional Trade Share of ASEAN members with India) (Figure: 3.1.9)

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3.1.10. TRADE OPENNESS OF ASEAN MEMBERS WITH INDIA Trade Openness of ASEAN members with India (Figure 3.1.10) Indicates the Trade India; .1.10) between the ASEAN with partner India from 2005 to 2009. A higher value indicates a more Open Economy. So, there is Open Trade Economy in Singapore in 2007; It has highest Valueof Nominal GDP growth in terms of Dollar. Refer to Annexure 1.10. nnexure

TRADE OPENNESS

1600 1400 1200 VALUE OF TRADE 1000 800 600 400 200 0 World With ASEAN World World World With World World World With 2008 2007 2006 2005

Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With WithWith With World COUNTRIES

Sources: Complied by Author ___________________________________________ Refer toAnnexure 1.10 (Trade Openness of ASEAN members with India)

(Figure: 3.1.10)

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3.2. FDI PERFORMANCE IN INDIA AND ASEAN.3.2.1. FDI INFLOWS OF ASEAN MEMBERS WITH INDIA

FDI InflowsVALUES OF FDI INFLOWS 60 50 40 30 20 10 0 India With ASEAN India India India With India India India With

2000 2001 2002 2003 2004 2005


Sources: Complied by Author

(Figure: 3.2.1)

2.2.2. CUMULATIVE FDI INFLOWS OF ASEAN MEMBERS WITH INDIA .2.2.

CUMULATIVE FDI INFLOWS

VALUES OF C. FDI INFLOWS 180 160 140 120 100 80 60 40 20 0 India With ASEAN India India India With India India India With 2005



(Figure: 3.2.2)

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The FDI (Foreign Direct Investment) Inflows of ASEAN members with India, ( Figure 3.2.1 ) of ASEAN and INDIA is, as it indicates that higher volume of FDI indicates higher capital mobility and integration in the country. The Foreign Investment Inflow is high in year 2000 between India and ASEAN i.e 53.79 as compared inyear 2005 i.e 14.61 in Malaysia and lowest is 0.02 in combodia. But there is noFDI Inflows in countries Indonesia, Myanmar, Philippines and Vietnam so there is zero capital mobility. As outlined in Annexure 2.1 In (Figure 3.2.2) of Cumula

tive FDI Inflow of ASEAN members with India, Indicates higher volume of FDI Inflow Amoung INDIA AND ASEAN. Also, it Indicates higher Capital Mobility and Integration in the region. Data shows that the cumulative FDI inflow is high in ASEANwith India i.e 161.81 and lowest is in combodia i.e 2.24 so there is high capital mobility is with ASEAN with partner India. in year 2005. Refer to Annexure 2.2

____________________________________________ Refer to Annexure 2.1 (FDI Inflowsof ASEAN and India) Refer to Annexure 2.2 (Cumulative FDI Inflows ASEAN and India)

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3.2.3. FDI SHARE OF ASEAN MEMBERS WITH INDIA

FDI SHAREVALUES OF FDI SHARE 0.6 0.5 0.4 0.3 0.2 0.1 0 India With ASEAN India India IndiaWith India India India With

2005



(Figure: 3.2.3)

3.2.4. CUMULATIVE FDI SHARE OF ASEAN MEMBERS WITH INDIA

CUMULATIVE FDI SHARE1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 India With ASEAN India India India With India In

dia India With 2005 VALUES OF TRADE



(Figure: 3.2.4)

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In (Figure 3.2.3) of FDI Share of ASEAN members with India, Indicates there is higher .2.3) ndicates share amoung ASEAN and Malaysia shows stronger preference for the ASEAN and moung Malaysia i.e 0.49; as well as higher Degree of Integration. Refer to Annexure 2.3 nnexure Cumulative FDI Share of ASEAN members with India, (Figure 3.2.4) Indicates that there .2.4) is A higher volume of FDI share amoung INDIA AND ASEAN and Malaysia. Also, it moung Malaysi Indicates higher Capital Mobility and Integration in the region. Refer to Annexure 2.4 A 3.2.5. FDI TRA

DE OPENNES OF ASEAN MEMBERS WITH INDIA.

FDI TRADE OPENNESS180 160 140 120 100 80 60 40 20 0 India With ASEAN India India India With IndiaIndia India With VALUES OF TRADE

2005



(Figure: 3.2.5)

In the (Figure 3.2.5) of FDI Trade Openness of ASEAN members with India, Indicates .2.5) Shows higher value of trade with Singapore also Indicates more Open Economy of Singapore. Refer to Annexure 2.5. nnexure___________________________________________ Refer to Annexure 2.3 (FDI Share ofASEAN members and India ) Refer to Annexure 2.4 (Cumulative FDI Share of ASEAN members and India) Refer to Annexure 2.5 (FDI Openness of ASEAN members and India)

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3.3. ECONOMIC PERFORMANCE IN INDIA AND ASEAN 3.3.1. EXTERNAL SECTOR OF ASEAN MEMBERS WITH INDIA The External Sector of ASEAN members with India, (Figure 3.3.1)Indicates, Overall BOP (Balance of Payment) Indicates that the Economy transaction with rest of the world is high in Cambodia. Total external debt is high in Singapore. Refer to Annexure 3.1 A

EXTERNAL SECTOR 2008

100%

80%

VALUES OF EXTERNAL SECTOR

60%

Total External Debt (% Of GDP) Total External Debt (% Of GDP)

40%

Overall Balance Of Payments Position (% Of GDP) Net Portfolio Investments (% OfGDP)

20%

Net Direct Investments (% Of GDP)

0%

-20%

COUNTRIES (Figure: 3.3.1)

Sources: Complied by Author ____________________________________________ Refer to Annexure 3.1 (External sector of ASEAN members with India nal India)

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3.3.2. REAL SECTOR AND PRICE GDP CONTRIBUTION OF ASEAN MEMBERS WITH INDIA The Real sector Price of ASEAN members with India, (Figure 3.3.2) Indicates, The Exports of Goods and Non Non-Factor Services less Imports of Goods and GDP is high inIndonesia and India. The total value of Gross Fixed Capital formation IndicatesGDI is more in Singapore. And value of the consumption goods and services acquired by households Private Consumption And Public consumption is more in Indonesia. Refer to Indonesi Annexure 3.2.

REAL SECTOR AND PRICE GDP CONTRIBUTION 200860

50

VALUES OF REAL SECTOR AND RPICE GDP

40 Export of Goods and Non Factor Services Reciept Growth 30 GDP Growth Gross Domestic Investment Growth Private Consumption Growth Public Consumption Growth

20

10

0

-10 COUNTRIES Sources: Complied by Author (Figure: 3.3.2)

____________________________________________ ___________________________________________ Refer to Annexure 3.2 (Real Sector and Price GDP Contribution of ASEANmembers with India) India

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4. FINDING AND SUGGESTIONVarious Parameters have been taken to judge the Trade between the ASEAN Countries with INDIA i.e the Trade and FDI performance to Find Trade Flexibility .and Cumulative FDI Share, FDI Openness, FDI Inflows, FDI Share, FDI Growth And Economic and Financial Indicators which shows the External and Real Sector Price GDP contribution towards the ASEAN with partner India. Research found that after considering Various Trade performance Parameter, the Import and Export Trade with Res

pect to Different Economies. The Trade performance Indicates high Degree of Export and Import. The various indicators taken is Export Intensity Index, Export Growth, Import Growth, Total Trade Growth, Trade Intensity Index, Export Share, Import Share, Total Trade Share, Intra-Regional Trade Share and Trade Openness. IfIndia Trades with Cambodia and Myanmar and if India has trade with respect to world (Open Trade) then it should trade with Singapore. The analysis Shows that the trade between India and world (Trade of Import and Export of India with Worldand ASEAN) in Open Economy is with Singapore i.e without any Restriction. Tradeshare is more if trade is done with Singapore where as Cambodia and Myanmar isMarginal. As Outlined in Annexure 1. Foreign Direct Investment performance has being considered to judge the Inflow and outflow of the Investment / Capital of Countries of INDIA AND ASEAN. The Research paper the research Analyzes shows diff

erent type of FDI Parameter such as FDI inflows, cumulative FDI inflows, FDI share, Cumulative FDI share and FDI Openness. Result proved that the capital is freely movable between INDIA and ASEAN; and the high share comes from ASEAN (Stronger Preference is with ASEAN) but, more Open Economy is seen with Singapore. So there is no Restriction of FDI inflow and Outflow in Singapore the Capital Transactions, Resident Investment Abroad, Non-resident Investment can freely move. So,it should Give More Prefrence to Singapore as Marginal to ASEAN. As in Annexure2.38

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The Economic

performance Indicators has being considered to judge the External/

Financial sector and Real Sector Price GDP Integration between India and ASEAN.Analysis shows that the Export Non-Service is with India and Indonesia but the GDP growth is More in India and Cambodia, GDI is more with Singapore, Private and

Public consumption more in Malaysia. So the Real Sector is seen with India andCambodia where it has more GDP. The Real NDI and Balance of Payment is in Cambodia, NPIGDP is seen with Indonesia and external debt is seen with Singapore. Here, the Economy of India Should be considered to Indonesia and Singapore where asMarginal concered towards Cambodia. As Outlined in Annexure 3. Recommendation tothis paper; Trade should be done with Cambodia, Singapore and Myanmar Because the performance of trade integration is Successful / high in Trading with Cambodia, Myanmar and Singapore with partner India. Hence, The Research has also seen that the GDP growth is increasing in India and Cambodia. So there is Free trade Zone between India and ASEAN (Cambodia, Myanmar and Singapore).

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ANNEXUREANNEXEURE 1 - PERFORMANCE OF TRADE INDICATOR IN INDIA AND ASEAN. Annexure 1.1 Export Intensity Index of ASEAN members with India.

Year 2005 2006 2007 2008

ASEAN With India 2.35 1.92 1.79 1.81

Cambodia With India 0.00 0.01 0.03 0.03

Indonesia With India 3.47 2.60 2.68 2.95

Malaysia With India 2.89 2.47 2.06 2.09

Myanmar With India 12.5 11.29 9.42 7.14

Philippines With India 0.21 0.19 0.29 0.22

Singapore With India 2.65 2.18 2.06 1.98

Vietnam With India 0.31 0.26 0.22 0.35

Source: IMF Directions Of Trade Statistics, Various Issues.

Annexure 1.2 Export Growth of ASEAN members with IndiaASEAN With INDIA Cambodia With India Indonesia With India Malaysia With India Myanmar With India Philippines With India Singapore With India Vietnam With India

Year 2005 2006 2007 2008

37.96 28.44 30.05 26.91

N/A 161.90 321.81 13.79

32.61 17.80 45.80 44.89

31.71 29.67 14.73 25.99

23.97 44.85 11.74 14.16

-3.69 38.75 104.21 -20.67

41.25 30.12 30.33 19.61

24.42 40.89 30.40 116.47


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Annexure 1.3 Import Growth of ASEAN members with India ASEAN Cambodia IndonesiaMalaysia Myanmar Philippines Singapore Vietnam With With With With With With With With India India India India India India India India N/A -4.55 14.67 6.31 21.68 46.34 0.42 17.91 64.51 33.76 21.23 19.22 16.42 19.72 47.70 24.48 112.12 14.3654.53 31.11 22.21 20.17 54.15 27.87 14.17 80.50 50.71 14.16 33.56 44.49 54.34 46.24 -100 -100 -100 -100 -100 -100 -100 -100 Annexure 1.4 Total Trade Growth of ASEAN and India

ASEAN Cambodia With With India India Indonesia With India Malaysia With India Philippines With India Singapore With India Vietnam With India

Year 2005 2006 2007 2008 2009

Source: IMF Directions Of Trade Statistics, Various Issue

Year 2005 2006 2007 2008 2009

Myanmar With India

29.85 26.99 29.27 33.79 -100

N/A 65.72 116.23 14.15 -100

20.09 22.07 36.58 53.63 -100

17.78 27.83 22.94 32.40 -100 Annexure 1.5

19.72 39.37 15.28 14.16 -100

15.59 20.89 41.03 15.52 -100

43.29 25.86 26.38 28.81 -100

3.22 46.74 50.93 61.60 -100


Trade Intensity IndexYear 2005 2006 2007 2008 2009 ASEAN With India Cambodia With India Indonesia With India Malaysia With India Myanmar With India Philippines With India SingaporeWith India Vietnam With India

1.89 1.73 1.68 1.74 N/A

0.30 0.35 0.40 0.35 N/A

2.72 2.46 2.45 2.46 N/A

1.97 1.84 1.73 1.92 N/A41

7.83 7.99 6.31 5.10 N/A

0.48 0.43 0.48 0.50 N/A

2.31 2.04 1.99 2.01 N/A

0.99 1.00 0.97 1.12 N/A


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Annexure 1.6 Export Share of ASEAN members with IndiaASEAN With India 2.27 2.49 2.89 3.20 N/A Cambodia With India 0.00 0.01 0.05 0.06N/A Indonesia With India 3.36 3.36 4.33 5.22 N/A Malaysia Myanmar With With India India 2.80 12.16 3.19 3.33 3.71 N/A 14.58 15.22 12.65 N/A Philippines Singapore Vietnam With With With India India India 0.20 2.56 0.30 0.25 0.48 0.39 N/A 2.81 3.33 3.52 N/A 0.34 0.37 0.62 N/A

Year 2005 2006 2007 2008 2009


Annexure 1.7 Import Share of ASEAN members with IndiaASEAN With India 1.48 1.60 1.80 2.12 N/A Cambodia With India 0.65 0.92 0.89 0.80N/A Indonesia With India 1.82 2.30 2.16 2.47 N/A Malaysia With India 0.96 1.021.40 1.97 N/A Myanmar Philippines Singapore With With With India India India 3.42 0.72 2.03 3.80 0.77 2.04 3.46 0.88 2.22 3.20 1.08 2.65 N/A N/A N/A Vietnam With India 1.62 1.96 2.16 2.59 N/A

Year 2005 2006 2007 2008 2009


Annexure 1.8 Total Trade Share of ASEAN members with IndiaASEAN With India 1.90 2.08 2.38 2.67 N/A Cambodia With India .30 .42 .57 .55 N/AIndonesia With India 2.74 2.96 3.47 3.78 N/A Malaysia Myanmar Philippines Singapore Vietnam With With With With With India India India India India 1.98 7.87 .48 2.32 1.00 2.21 9.60 .52 2.45 1.20 2.45 2.95 N/A 8.92 7.84 N/A .69 .77 N/A 2.813.10 N/A 1.38 1.73 N/A

Year 2005 2006 2007 2008 2009

Source: IMF Directions of Trade Statistics, Various Issues

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Annexure 1.9 Intra Regional Trade Share of ASEAN members with India Countries Cambodia Indonesia Malaysia Myanmar Phillipnnes Singapore Vietnam ASEAN Intra ASEAN Share To Total Export 7.1 19.8 25.9 58.2 14.4 42.0 16.2 27.6 Intra ASEAN ShareTo Total Import 36.2 31.7 24 45.5 25.3 30.3 24.5 25.9 Intra ASEAN Share To Total Trade 21.8 25.6 25.1 53.6 20.3 36.3 20.9 26.8

Source: ASEAN Merchandise Trade Statistics Database (compiled/computed from data

submission, publications and/or websites of ASEAN Member States

national. ASEAN Free Trade Area (AFTA) units, national statistics offices, customs departments/agencies, or central banks)

Annexure 1.10 Trade Openness of ASEAN members with IndiaASEAN With World 88.48 90.12 122.09 111.55 N/A Cambodia With World 30.36 33.95 35.34 42.41 N/A Indonesia With World 50.15 44.43 43.65 52.03 N/A Malaysia With World 184.46 185.38 173.66 160.84 N/A Myanmar With World 60.75 57.34 52.58 51.15 N/A Philippines With World 89.69 83.83 73.58 65.65 N/A Singapore With World 355.43 367.40 337.34 362.31 N/A Vietnam With World 130.75 139.03 156.55 159.63 N/A

Year 2005 2006 2007 2008 2009

Source: IMF Directions of Trade Statistics; IMF World Economic Outlook database, Various issues

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ANNEXEURE 2 - FDI PERFORMANCE IN INDIA AND ASEAN. Annexure 2.1 FDI Inflows of ASEAN members with IndiaASEAN With India Cambodia With India Indonesia With India Malaysia With India Myanmar With India Philippines Singapore Vietnam With With With India India India

Year 2000 2001 2002 2003 2004 2005

53.79 25.31 2.01 11.80 10.88 14.61

0.29 0.02 0 0 0 0

0 0 0 0 0 0

0.80 0.39 1.88 11.80 10.88 14.61 Annexure 2.2

0 0 0 0 0 0

0 0 0 0 0 0

52.6 24.9 0 0 0 0

0 0 0 0 0 0

Source: UNCTAD FDI Database, Various Issues.

Cumulative FDI Inflow of ASEAN members with IndiaASEAN With India 161.81 Cambodia With India 2.24 Indonesia With India Malaysia With India 56.87 Philippines Singapore Vietnam With With With India India India 3.87 98.5

Year 2005 200609

Myanmar With India

0 0

0 0

0 0

0

0

0 Annexure 2.3

0

0

Source: UNCTAD FDI database, Various Issues.

FDI Share of ASEAN members with IndiaYear 2005 ASEAN With India 0.49 Cambodia With India Indonesia With India Malaysia Myanmar Philippines Singapore Vietnam With With With With With India India India India India 0 0 0 0 0.49

0

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Source: UNCTAD FDI database, Various Issues.

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Annexure 2.4 Cumulative FDI Share of ASEAN members with IndiaASEAN With India 1.42 Cambodia With India 0.01 Indonesia With India Malaysia With India 0.50 Myanmar With India Philippines With India 0.03 Singapore With India0.87 Vietnam With India

Year 2005 200609

0 0

0 0

0 0

0

0

0 Annexure 2.5

0

0

Source: UNCTAD FDI Database, Various Issues.

FDI Trade Openness of ASEAN members with IndiaASEAN Cambodia Indonesia Malaysia With With With With India India India India 5.49 14.77 33.99 39.89 Myanmar With India 40.85 Philippines With India 14.80 Singapore Vietnam With With India India 168.38 58.93

Year 2005 200609

0

0

0

0

0

0

0

0

Source: UNCTAD FDI Online, Various Issues

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ANNEXEURE 3 - ECONOMIC PERFORMANCE IN INDIA AND ASEAN Annexure 3.1 External Sector of ASEAN members with India Net Direct Investments (% Of GDP) 7.21 0.48 0 0 .76 0 0 0 Net Portfolio Investments (% Of GDP) -0.11 0.34 0 0 -1.53 -9.93 0 0 Overall Balance Of Payments Position (% Of GDP) 3.09 -0.37 0 0 -1.48 0 0 0

Countries Cambodia Indonesia Malaysia Myanmar Phillipnnes Singapore Vietnam India

Total External Debt (% Of GDP) 0 20.55 26.98 9.33 36.09 27626 31.17 20.66

Sources : Overall Balance of Payments Position (% of GDP), IMF International Financial Statistics Online,09/feb/2009 IMF International Financial Statistics Online, 09/feb/2009 IMF International Financial Statistics Online, 15/aug/2010

Annexure 3.2 Real Sector And Price GDP Contribution of ASEAN members with IndiaExport of Goods and Non-Factor Service Receipts Growth (y-o-y, %) 0 9.48 1.30 0-1.88 1.27 0 9.48

Countries Cambodia Indonesia Malaysia Myanmar Phillipnnes Singapore Vietnam Indi

a

GDP Growth (y-o-y, %) 6.69 6.06 4.63 0 3.83 1.14 6.18 7.45

Gross Domestic Investment Growth (y-o-y, %) 0 12.62 -2.43 0 1.67 42.75 0 0

Private Consumption Growth (y-oy, %) 0 5.33 8.46 0 4.66 2.44 0 0

Public Consumption Growth (y-oy, %) 0 10.42 10.88 0 3.23 8.11 0 0

Sources : National Statistical Coordination Board, 9 February 2010. Badan PusatStatistik, Badan Pusat Statistik , 9 February 2010, General Statistics Office ,10 February 2010. Department of Statistics of Malaysia, 4 December 2009. Ministr

y of Trade and Industry , 4 December 2009

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ABBREVIATIONSARF ASEAN Regional Forum ASEAN + 4 Indonesia, Malaysia, Philippines, and Thailand. ASEC ASEAN Secretariat. APEC Asia Pacific Economic Cooperation. CECA Comprehensive Economic Cooperation Agreement. DIC Direct Investment Capital. EU EuropeanUnion. EII Export Intensity Index. FTA Free Trade Agreements. FDI Foreign Direct Investment. GRC Global Relocated Capital. GATS General Agreement on Trade in Services. GDP Gross Domestic Product. GDI Gross Domestic Investment. IMF Internat

ional Monetary Fund. IT Information Technology. IPA India

s Preferential Agreements. Lao PDR Lao Peoples Democratic Republic. MTS Multilateral Trading System. M&A Mergers And Acquisition. TCI Trade Complementarity. TII Trade Intensity Index.NGDP Product. OCA Optimum Currency Areas. OECD Organisation for Economic Cooperation and Development. OPEC Organization of the Petroleum Exporting. OREI Officeof Regional Economic Integration. PCOMP Philippine Composite Index. PRC PeoplesRepublic of ChinAnnexure PMI Purchasing Managers Index. PTR Preferential Tariff Rates. RTA Regional Tariff Agreement. SME Small And Medium Sized Enterprise. SEACSouth-East Asian Countries. SNA System of National Accounts. UNCTAD United Nations Conference on Trade and Development. WTO47

ASEAN Association of Southeast Asian Nations. BOP Balance Of Payments. BPM Balance of Payment Manual 5th Edition. Nominal Gross Domestic

World

Trade

Organisation

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Reference and BibliographyASEAN Free Trade Area (AFTA) units, national statistics offices, customs departments/agencies, or central banks, Various Issues. ASEAN Merchandise Trade Statistics national, Intra Regional Trade Share Various Issues Badan Pusat Statistik, Badan Pusat Statistik, (9 February 2010). Various Issues. Bayoumi, Tamim and Mauro, Paolo, (December 1999). The Suitability of ASEAN for a Regional Currency Arrangement. 1999 International Monetary fund, Vol, pp. 1-24, 1999.WW/99/162 ---------

Available: http://ssrn.com/abstract=880817. [Viewed on 20/11/2009] Carsten FinkWorld Bank - Development Research Group (DECRG) and Deunden Nikomborirak - Thailand Development Research Institute, (February 1, 2007). Rules of Origin in Services: A Case Study of Five ASEAN Countries. World Bank Policy Research Working Paper No. 4130. --------- Available: http://ssrn.com/abstract=961098. [Viewed on 23/11/2009] C P Chandrasekhar and Jayati Ghosh. Parthapratim Pal ([email protected]) is with Indian Institute of Management Calcutta and Mitali Dasgupta ([email protected]) is with the Energy and Resources Institute, (September 19, 2009). The ASEAN-India Free Trade Agreement: An Assessment. Vol xliv no 38 . [Viewedon 18/11/2009] Department of Statistics of Malaysia, (4 December 2009), VariousIssues.

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Ganeshan Wignaraja, (November 2008). Foreign Direct Investment, Innovation, and Exports: Firm-Level Evidence from Peoples Republic of China, Thailand, and Philippines. ADB Economics. Working Paper Series No. 134. --------- Available: http://www.adb.org/economics [viewed on 28/02/2010] General Statistics Office, (10 February 2010), Various Issues. Hufbauer, Gary Clyde and Wong, Yee, (October 2005). Prospects for Regional Free Trade in AsiAnnexure Institute for International Economics. Working Paper No. 05-12. --------- Available: http://ssrn.com/abstract=83010

6 [viewed on 04/12/2009] IMF Directions of Trade Statistics, Various Issues. India

s Monetary Integration with East and South East Asia: A Feasibility Study (December 2003), [RIS-DP#64/2003]. Ministry of Trade and Industry, (4 December 2009), Various Issues. National Statistical Coordination Board, (9 February 2010), Various Issues. Parashar Kulkarni and Biplove Choudhary, Trade in Services and India

s Preferential Agreements. Trade In Services And India: Prospects And Strategies. --------- Available: http://ssrn.com/abstract=987272 [viewed on 15/12/2009]Saxena, Sweta C., (December 2003). India

s Monetary Integration with East and South East Asia: A Feasibility Study. RIS Working Paper No. 64/2003. --------- Available: http://ssrn.com/abstract=500664 [viewed on 24/11/2009]

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Simon J. Evenett, Professor of International Trade and Economic Development, Department of Economics, University of St. Gallen, ([email protected]), (April2007), (December 1999). EU Commercial Policy in a Multipolar Trading System. Working on 15/12/2009] UNCTAD Database, Various Issues. Listed Websites Viewed: http://www.aseansec.org [Viewed on 10/11/2009] http://ftAnnexureicrindiAnnexureorg/ongoing-negotiations/india-asean-ftAnnexurehtml [Viewed on 10/11/2009] http://www.asean.org/about_ASEAN.html Paper No.23 --------- Available: http://ssrn.com/abs

tract=984325, http://www.cigionline.org [viewed

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