BOOM

Trending Searches

    SUPPORT
    BOOM

    Trending News

      • Fact Check 
        • Fast Check
        • Politics
        • Business
        • Entertainment
        • Social
        • Sports
        • World
      • Law
      • Explainers
      • News 
        • All News
      • Decode 
        • Impact
        • Scamcheck
        • Life
        • Voices
      • Media Buddhi 
        • Digital Buddhi
        • Senior Citizens
        • Videos
      • Web Stories
      • BOOM Research
      • BOOM Labs
      • Deepfake Tracker
      • Videos 
        • Facts Neeti
      • Home-icon
        Home
      • About Us-icon
        About Us
      • Authors-icon
        Authors
      • Team-icon
        Team
      • Careers-icon
        Careers
      • Internship-icon
        Internship
      • Contact Us-icon
        Contact Us
      • Methodology-icon
        Methodology
      • Correction Policy-icon
        Correction Policy
      • Non-Partnership Policy-icon
        Non-Partnership Policy
      • Cookie Policy-icon
        Cookie Policy
      • Grievance Redressal-icon
        Grievance Redressal
      • Republishing Guidelines-icon
        Republishing Guidelines
      • Fact Check-icon
        Fact Check
        Fast Check
        Politics
        Business
        Entertainment
        Social
        Sports
        World
      • Law-icon
        Law
      • Explainers-icon
        Explainers
      • News-icon
        News
        All News
      • Decode-icon
        Decode
        Impact
        Scamcheck
        Life
        Voices
      • Media Buddhi-icon
        Media Buddhi
        Digital Buddhi
        Senior Citizens
        Videos
      • Web Stories-icon
        Web Stories
      • BOOM Research-icon
        BOOM Research
      • BOOM Labs-icon
        BOOM Labs
      • Deepfake Tracker-icon
        Deepfake Tracker
      • Videos-icon
        Videos
        Facts Neeti
      Trending Tags
      TRENDING
      • #Operation Sindoor
      • #Pahalgam Terror Attack
      • #Narendra Modi
      • #Rahul Gandhi
      • #Waqf Amendment Bill
      • #Arvind Kejriwal
      • #Deepfake
      • #Artificial Intelligence
      • Home
      • World
      • India Must Waste No Time Acting...
      World

      India Must Waste No Time Acting East

      By - Hemant Shivakumar |
      Published -  28 March 2016 3:43 PM IST
    • Boomlive

      Modi-Xi Jinping

      Since the turn of the 21st century, the Asia-Pacific region has become central to Indian strategic thinking. The Act East policy, unveiled by the Indian Prime Minister Narendra Modi in late 2014, reinforced this objective. And during his visits toMongolia, Australia and at the ASEAN summit, Modi vigorously underlined how India’s destiny was tied to the future of the Asia Pacific.

      Even as New Delhi strengthens its ties with ASEAN, several ASEAN countries — including the Philippines, Cambodia and Indonesia — are yet to ratify the India–ASEAN agreement on services trade. In August 2015, New Delhi began a long overdue review of its trade agreement on goods with ASEAN. India’s interests in the multilateral ASEAN-led Regional Comprehensive Economic Partnership (RCEP) agreement have also meant that it has deferred the conclusion of a bilateral trade agreement with Australia. Despite India’s optimism and Chinese pressure for an early agreement on RCEP, any conclusion of the agreement, which was due in 2015, could still be a way off.

      Delays in multilateral trade agreements will effect India’s capabilities in advancing global value chains. Also, the commercial incentives that the US-led Trans-Pacific Partnership generates for partner countries — six of which are also in the RCEP — could further increase these costs and stymie Indian economic integration in the region.

      New Delhi could use its growing global stature to reinforce its eastward economic goals. China’s military posture — and, to a lesser extent, US rebalancing — is effectively forcing nations such as Australia and Japan to reconsider and reshape their national security priorities.

      Given India’s recent growth rates and maritime prowess, countries such as Japan, the Philippines and Australia have lent support to New Delhi’s notions of an enhanced role in the region, leading India to increase its maritime commitments with Japan, Australia and Indonesia in 2015. India’s enthusiasm for greater naval linkages has been reinforced by India’s strategic competition with China. But just as Beijing grows increasingly restive in the Asia-Pacific, New Delhi’s eastward economic gallop has considerably slowed.

      In this context, Japan and Australia are both stepping up defence spending and, partly at Washington’s encouragement, are willing to embrace India as a strategic partner in the region. The former Australian prime minister Kevin Rudd has boldly suggested that India could join key regional economic organisations such as the Asia Pacific Economic Cooperation (APEC) forum. East Asian nations are likewise eagerto deepen economic ties with India.

      But concerns remain about the pace of India’s economic response to these developments. Since 2012, India’s share of trade with prominent Asia Pacific nations — such as Japan, Australia and the ASEAN nations — has declined. And New Delhi’s commercial partnerships — with Australia, Vietnam, Japan and others — remain underdeveloped.

      Japanese exports continue to face tariff barriers that deter their flow into India. Despite Australia offering tariff concessions, India has delayed negotiation of the key bilateral trade agreement that was expected to be concluded in early 2016.Developing border infrastructure at trading outposts between India and Myanmar — India’s gateway to Southeast Asia — will improve trade between India and the ASEAN nations. But budgetary allocations to develop such infrastructure have been cut by more than 30 per cent for the 2016–17 financial year compared to the previous year.

      Whether or not India partakes in larger maritime security arrangements in the Asia Pacific, strengthening economic ties with the region should be non-negotiable. Modi can begin by pressing his administration to conclude a pending trade agreement with Australia before the 12th round of RCEP negotiations begin in Perth this April.

      With New Delhi’s emphasis on economic cooperation, as India’s foreign secretary argues, connectivity and development will be crucial. To improve bilateral trade, New Delhi should speed up port and road connectivity projects to Myanmar and Thailand, and address tariff concerns.

      India is undoubtedly looking global. As it transitions to a leading regional power alongside China, it should make better use of its growing ties in the Asia Pacific to strengthen economic linkages. As the Vietnamese Ambassador to India Ton Sinh Thanh said recently, India not only has to act east, it must also act fast.

      This article was republished from EastAsiaForum.org. Hemant Shivakumar is a National Parliamentary Fellow at The Australian National University and a Research Associate at the Centre for Policy Research in New Delhi.

      Tags

      Acting EastASEANAsia Pacific tradebilateral tradeIndiaRCEPRegional Comprehensive Economic Partnershiproad connectivity projectsTrade and Services AgreementChina
      Read Full Article
      Next Story
      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker. Please reload after ad blocker is disabled.
      X

      Subscribe to BOOM Newsletters

      👉 No spam, no paywall — but verified insights.

      Please enter a Email Address
      Subscribe for free!

      Stay Ahead of Misinformation!

      Please enter a Email Address
      Subscribe Now🛡️ 100% Privacy Protected | No Spam, Just Facts
      By subscribing, you agree with the Terms & conditions and Privacy Policy connected to the offer

      Thank you for subscribing!

      You’re now part of the BOOM community.

      Or, Subscribe to receive latest news via email
      Subscribed Successfully...
      Copy HTMLHTML is copied!
      There's no data to copy!