Less nationalism more connectivity

Less nationalism more connectivity

Context:

• Ahead of the ASEAN-India Summit 2018, Thailand’s Ambassador to India and a key official convening the ASEAN-India summit, highlighted the importance of a conducive political atmosphere and reduction in “national rhetoric” to ensure growth of the connectivity projects in the region.

What is the importance of connectivity?

• Strengthening connectivity, including land and sea connectivity, with ASEAN is one of the strategic objectives of India and ASEAN Member States.
• During the ASEAN-India Business and investment Meet and Expo in January 2015, several officials and delegations from the ASEAN will be travelling Assam and other northeastern States to inspect the possibilities for industry and trade.
• These would connect to South-East Asia through projects in the pipeline like the India-Myanmar-Thailand trilateral highway and the Kaladan Multi-Modal Transport Corridor.
• To yield optimum benefit from the infrastructure, it is necessary for India and ASEAN to work out reservations on free trade, including the Regional Comprehensive Economic Partnership (RCEP) agreement

What has been India’s concerns over China factor in trade?

• India has concern over unchecked Chinese entry into Indian markets through free trade with ASEAN countries.
• Lately, RCEP negotiations have floundered largely over India’s concerns related to Chinese entry in Indian markets
• Countries in the negotiations are at present calling for a deadline to end talks by April 2018
• The failure to forge an agreement could hamper bilateral trade between ASEAN and India. This is expected to be a major issue of discussion during the upcoming Summit.