A STUDY OF FREE TRADE AGREEMENT BETWEEN INDIA AND ASEAN

SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIR

EMENTS FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION HONOURS INTE
RNATIONAL
Submitted by:
VIVEK GOYAL 30800002
Supervisor:
VISHAL SARIN SENIOR LECTURER
DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (2010)
1
CERTIFICATION/THESIS APPROVAL BY FACULTY ADVISOR
TO WHOMSOEVER IT MAY CONCERN
This
is
to
certify
that
the
project
report carried out
titled by
“__________________________________________________”
Mr.__________________________________,S/o_______________________________ has bee
n accomplished under my guidance & supervision as a duly registered MBA student
of the Lovely Professional University, Phagwara. This project is being submitted
by him/her in the partial fulfillment of the requirements for the award of the
Master of Business Administration Honours International from Lovely Professional
University. His dissertation represents his original work and is worthy of cons
ideration for the award of the degree of Master of Business Administration Honou
rs International.
___________________________________ (Name & Signature of the Faculty Advisor) Da
te:
2
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 the
requirement of a degree programme. Any literature, data or works done by others
and cited within this dissertation has been given due acknowledgement and listed
in the reference section.
_______________________ (Student's name & Signature)
_ 30800002___ (Registration No.)
Date:__________________
3
ACKNOWLEDGEMENT
It gives an immense pleasure to me to present this research paper, a written for
m of the practical experience I have undergone. The research paper on “ A STUDY OF
FREE TRADE AGREEMENT BETWEEN INDIA AND ASEAN ” would not have seen the light of t
he 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 t
aking 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 pro
ject. During the actual Research Paper, Mr. Vishal Sarin Project Guide, who set
the ball rolling for my project. He has been a source of inspiration through his
constant guidance; personal interest; encouragement and help. I convey my since
re thanks to him. In spite of his busy schedule he always found time to guide me
through the project. I am also grateful to him for reposing confidence in my ab
ilities and giving me the freedom to work on my project. Without his invaluable
help I would not have been able to do justice to the project.
VIVEK GOYAL
4
EXECUTIVE SUMMARY
This Project Is Based On The Free Trade Agreement Between India And Asean.It Is
Process A Process State Enter Into The Fta- Agreement.This Research Is Done In O
rder To Know Weateher The Trade Integration Is Profitable.This Integration Forms
A Big Consumer Market Of $550 Millions, People Abundant Natural Resources, Skil
led And Educated Labour Force Whch Help In Intra Asean Trade Growth.We Studied T
he 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 Descrep
tive Research Is Done To Achiveve Our Objective. The Secondary Data Ris Taken Fr
om Websites Like IMF,ADB( Asian Development Bank). The Data Is Then Often Used I
n Formula Of Export And Import Trade To Achivev The Objective Of The Research. T
he Intergration Indicators Data Base On Various Trade Parameters Like Import And
Export Growth, Trade Intensity, Trade Intensity Index is Anlaysied With Help of
Tables And Graphs.we have observed that the intregration amoung ASEAN countries
have made the economic gowth in all countries of ASEAN. It also help to enhance
the economic growth of each members country of ASEAN. the reason behind the hig
h inflow of FDI amoung ASEAN members is liberal policy regime.
5
OBJECTIVE OF STUDY
An attempts has being made to study the Free trade agreement between ASEAN and I
ndia. To know the relationship of Trade between between ASEAN members with partn
er India. Various performance level has being taken to study the Trade between I
ndia and ASEAN, Foreign Direct Investment and Economic Indicator. The main objec
tive is to study the performance of Trade between ASEAN and India amoung the mem
bers 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 k
nowledge process where I had responsibility to let correspondent aware about the
Economic performance of International Business in case they are not aware.
6
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 P
erformance 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 ASEAN
FIGURE 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 O
F CHARTS Export Intensity Index of ASEAN members with India Export Growth of ASE
AN members with India Import Growth of ASEAN members with India Total Trade Grow
th 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 Ind
ia Total Trade Share of ASEAN members with India Intra-Regional Trade Share of A
SEAN members with India Trade Openess of ASEAN members with India PG.NO 22 23 24
25 26 27 28 29 30 31
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LIST OF FIGURES
FDI PERFORMANCE OF INDIA AND ASEAN
FIGURE NO. 3.2.1 3.2.2 3.2.3 3.2.4. 3.2.5. NAME OF CHARTS FDI inflows Cumulative
FDI Inflows FDI share Cumulative FDI share FDI Trade Openness PG.NO 32 32 34 34
35
ECONOMIC PERFORMANCE OF INDIA AND ASEAN FIGURE NO. 3.3.1 NAME OF CHARTS External
sector of ASEAN Members with India Real Sector and Price GDP Contribution Of me
mbers of ASEAN with India PG.NO 36
3.3.2
37
9
1. INTRODUCTION
Free trade agreements (FTAs) have proved to be one of the best ways to open up f
oreign markets for exporters. FTA is an agreement made between two or more count
ries under which countries involved are given preferential market access. FTA’s pa
rtner countries provide each other favorable treatment on trade, investment, pro
vision of services and trade facilitation as well as economic and technical coop
eration.1 Exporters in India will benefit from FTAs through preferential treatme
nt and market access. Exporters will also enjoy cost savings from elimination or
reduction of customs duties and from mutual agreements, trade facilitating cust
oms procedures and removal of regulations. FTA’s also provide for easier entry for
businessmen as well as more predictable terms for investment in the FTA partner
country.2 The term ‘Free Trade Agreement’ (FTA) is often there are large and increa
sing numbers of Free Trade Agreements (FTAs) being used to represent both negoti
ated, many of which feature far-reaching commitments on a broad range of regiona
l 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 in
1995, a member of the ASEAN Regional Forum (ARF) in 1996, and a summit level par
tner (on par with China, Japan and Korea) in 2002.3 The Association of Southeast
Asian Nations (ASEAN) was established on 8 August 1967 in Bangkok, Thailand, wi
th the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fa
thers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand.
4
_____________________________________ 1 http://ftAnnexureicrindiAnnexureorg/ongo
ing-negotiations/india-asean-ftAnnexurehtml 2 http://www.aseansec.org 3 http://w
ww.aseansec.org 4 http://www.asean.org/about_ASEAN.html
10
1. REVIEW OF LITERATURE
The signing of the trade in goods agreement with the Association of South-East A
sian Nations has reacted in India in FTA This is not completely unexpected as so
me of the south-east Asian countries have a much higher level of efficiency in t
hese sectors as compared to IndiAnnexure This article studies the tariff schedul
e of India and does a preliminary evaluation of the ASEAN-India free trade agree
ment (FTA). Finally, in an increasingly integrated world, one should be careful
about signing FTAs even with other developing countries. Generally, south-south
FTAs tend to suffer less from problems that plague the northsouth FTAs . But one
needs to keep in mind that the ASEAN countries are one of the first recipients
of global relocated capital and foreign direct investment (FDI) has played a maj
or role in promoting exports in these countries. Therefore, it is possible that
in many cases, the preferential tariff rates of the ASEAN-India FTA will actuall
y help a firm from a developed country based in one of the south-east Asian coun
tries. (C P Chandrasekhar and Jayati Ghosh. Parthapratim Pal , 2009). The number
of bilateral and regional free trade. agreements (FTAs) involving members of th
e Association of South East Asian Nations (ASEAN) is increasing.Offers an overvi
ew of agreements in which at least one ASEAN country participates. All of these
agreements seek the liberalization of trade in services, at a faster pace than w
hat is foreseen under the WTO’s General Agreement on Trade in Services (GATS). the
main findings of a research project that investigated some of these implication
s for five. ASEAN countries: Laos, Malaysia, the Philippines, Thailand, and Viet
nam. In particular, for selected service sub-sectors and a number of criteria fo
r rules of origin, national research studies in these countries simulated which
service providers would or would not be eligible for preferences negotiated unde
r an FTA Rules of origin have long been a prominent issue in the case of goods t
rade. As governments enter into negotiations to establish bilateral or regional
FTAs covering trade in services. For countries in the ASEAN region, this questio
n applies at two levels. First, as reaffirmed by ASEAN Economic Ministers in Aug
ust 2006, ASEAN countries are committed to establishing
11
free regional trade in services by 2015. Second, ASEAN as a whole has entered in
to services negotiations with China and additional negotiationswith Australia, J
apan, Korea, India, and New Zealand may well be launched. (Carsten Fink World Ba
nk, 2007). The WTO Doha Round and the Asia Pacific Economic Cooperation (APEC) f
orum, and mindful of free trade agreement (FTA) networks centered on the United
States and Europe, Asian countries have joined the FTA game. By 2000, Asian coun
tries had ratified 10 bilateral FTAs, and they are currently negotiating some 20
bilateral FTAs, many with non-Asian partners, including Australia, Canada, Chil
e, the European Union, India, and Qatar. China has been particularly active sinc
e 2000. It has completed three bilateral FTAs - Thailand in 2003 and Hong Kong a
nd Macao in 2004 and is initiating another 17 bilateral and regional FTAs. Howev
er, a regional Asian economic led by China seems distant, even though China acco
unts 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 impl
ementing extensive trade reforms within the context of reciprocally negotiated i
nternational trade agreements. In short, Brazil, China, and India have little or
no track record of engaging in reciprocal trade liberalisation and, since these
three emerging trading powers are taking centre stage in the WTO, the degree of
future support for the liberalisation function. It also examines some of the lo
nger-term implications of a multipolar World Trade Organization (WTO) for Europe
an policy-makers and role the European Union might play in the multilateral trad
ing system in the years to come. To me there are at least four important challen
ges to be faced when thinking through the implications of a multipolar world tra
ding system. The first challenge is of this new world have not been defined. The
second challenge, is that it is not immediately apparent what leadership means
in this context. third challenge concerns the question ‘whose trade policy is the
EU s trade policy?. Finally, EU member states have acted more aggressively towar
ds the European Commission. (Evenett, Simon, 2007).
12
Monetary and Economic Department states that that significant complementarities
in trade exist among these countries, most of them experience similar labour mob
ility is already present. These results point to the fact that the cost of adopt
ing a single currency may be minimal, while huge benefits could accrue from enha
nced trade. a strong trend towards regional trading blocs, the recent success of
the euro has also prompted policymakers to look for other optimum currency area
s (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 exi
sts potential for trade among the ASEAN + 4 countries, which is calculated using
the COS measure, developed by Linnemann (1966). India’s monetary integration with
east and Southeast Asia in particular the existence of the economic criteria fo
r a currency union in AsiAnnexure There are significant complementarities in the
trade structure too, which suggest that these countries should work towards a C
ommon Market. (Sweta C. Saxena , 2003). The cost, benefit, and implication of an
association of southern asian nation (ASEAN) regional currency arrangement that
is assumed to culminate in a regional currency. On Economic criteria, ASEAN app
ears less suited for regional currency arrangement than Europe before the Maastr
icht treaty, although the difference is not large. He also says that the potenti
al 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 experi
ence of Europe implies for similar possible venture in ASEAN. thus, the ecnomic
criteria , the member of ASEAN appears to be less suited for currency union than
those of EU. (Tamim Bayoumi International Monetary Fund (IMF) , 1999). The new
dynamism is reflected in the fact that nearly every country is a member of an RT
A, and on average every country belongs to six RTAs, variations across regions a
nd levels of development. India has signed one RTA with a services chapter, name
ly, the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) . As
a pioneering attempt, there are expectations that the CECA experience would pro
vide valuable inputs and serve as model of sorts for India’s future services negot
iations. Research on the CECA therefore assumes an immediate relevance, especial
ly with
13
reference to the fact that India is actively considering enlarging its engagemen
t in services RTAs and embarking on the path of embedding a services chapter acr
oss the board in past, present and future FTAs. (Kulkarni, Parashar). The links
between ownership, innovation, and exports in electronics firms in three lateind
ustrializing developing countries (People’s Republic of China (PRC), Thailand, and
Philippines), drawing on recent developments in applied international trade and
innovation and learning. The econometric results confirm the importance of fore
ign ownership and innovation in increasing the probability of exporting. Higher
levels of skills, managers’ education, and capital also matter in the People’s Repub
lic of China as well as accumulated experience in Thailand. Accordingly, technol
ogical effort in these countries mostly focuses on assimilating and using import
ed technologies rather than formal research and development by specialized engin
eers. (Ganeshan Wignaraja, 2008).
14
RESEARCH METHODOLOGY
In Research Methodology of Free Trade Agreement However, there are many problems
ethodology with this new technology. We presented step step-by-step procedures
to perform process step analysis for the problem in the international trade agre
ement. It shows that the proposed methodology is a useful tool f failure analysi
s in the problems. This method can also be for his applied to the related fields
of 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/reg
ion to the share of world trade with a partner. A measure of trade relationship
among partners is trade intensity. The Trade Intensity Index (TII) is used to de
termine whether the value of trade between two countries is greater or smaller t
han expected, on the basis of their importance in world trade. It is their defin
ed as the share of one country’s exports going to a partner divided by the share o
f 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 is
the dollar value of world trade with country j, and Tww is the dollar value of
world trade.
15
An index of more than one indicates that trade flow between countriess is larger
than one expected given their importance in world trade. 1.1.2 Export intensity
index index: The ratio of export share of a country to the share of world expor
ts 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 the
dollar 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 i
ndex of more than one indicates th trade flow between countries is larger than t
hat expected given their importance in world trade. 1.1.3 Intra-Regional Trade S
hare Regional Share: The percentage of intra-regional trade to total trade of th
e 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 the
world, and Xwi is exports of world to region i. A higher share indicates a high
er degree of s . dependency on regional trade.
16
1.1.4. Total Trade Share : The percentage of trade with a partner to total trade
of a country. It is computed as the dollar value of total trade of country i wi
th country j expressed as a percentage share of the dollar value of total trade
of country i with the world. A higher share indicates a higher degree of integra
tion between partner countries. 1.1.5. Trade Openness : Measured by total trade
of a country expressed as a percentage of nominal Gross Domestic Product (GDP) i
n 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 exports
of a country. It is computed as the dollar value of exports of country i to cou
ntry j expressed as a percentage share of the dollar value of exports of country
i to the world. A higher share indicates a higher degree of integration between
partner countries. 1.1.8. Import Growth : The percentage change in the value of
imports relative to the previous year. 1.1.9. Import Share : The percentage of
imports from a partner to total imports of a country. It is computed as dollar v
alue of imports of country i from country j expressed as a percentage share of t
he dollar value of imports of country i from the world. A higher share indicates
a higher degree of integration between partner countries.
17
1.1.10. Trade Growth The percentage change in the value of total trade relative
to the previous year. 1.2. FDI ( FOREIGN DIRECT INVESTMENT ) PERFORMANCE IN INDI
A AND ASEAN. 1.2.1. Foreign Direct Investment (FDI) : Some countries may allow f
or subjective qualifications, but most foreign direct investment enterprises are
branches or subsidiaries that are wholly or majority owned by the nonresident,
Components of direct investment capital transactions are recorded primarily on a
directional basis Subcomponents of direct investment are equity capital, reinve
sted earnings, and other capital related to intercompany debt. FDI flows with a
negative sign indicate that at least one of the three subcomponents is negative
and not offset by positive amounts of the remaining components. These are instan
ces of reverse investment or disinvestment. 1.2.2. Foreign Direct Investment (FD
I) Inflows : Foreign capital reported as balance-of-payments net inflows. A high
er volume of FDI indicates higher capital mobility and integration in the countr
y. 1.3.3. Foreign Direct Investment (FDI) Share : The percentage of regional FDI
inflows to total FDI from the investing country. It is calculated as the dollar
value of FDI of country i to country j expressed as a percentage share of the d
ollar value of FDI of country i to the world. A higher share indicates a stronge
r preference for the region and a higher degree of integration.
18
1.2.4. Cumulative Foreign Direct Investment (FDI) Inflows : The inclusive sum of
foreign capital reported as balance-of-payments net inflows. A higher volume of
FDI indicates higher capital mobility and integration in the country. 1.2.5. Cu
mulative Foreign Direct Investment (FDI) Share : The percentage of regional FDI
inflows to total FDI from the investing country. It is calculated as the dollar
value of cumulative FDI of country i to country j expressed as a percentage shar
e 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 integratio
n. 1.2.6. FDI Openness : Measured by the dollar value of inward FDI stock of a c
ountry expressed as a percentage of its nominal GDP in dollars. A higher value i
ndicates a more open economy.
____________________________________________ Note: FDI flows in the host economy
by geographic origin are sourced from United Nations Conference on Trade and De
velopment (UNCTAD). FDI outflows by destination are derived from the reported in
flows. FDI inward stocks expressed as a percentage of GDP, as well as cross-bord
er mergers and acquisition (M&A) sales and purchases are sourced from UNCTAD’s FDI
Online database.
19
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 value
of gross fixed capital formation, changes in inventories and acquisitions less d
isposals of valuables for a unit or sector. 1.3.1.2. Gross Domestic Product : Gr
oss Domestic Product (GDP) measures the value of final goods and services produc
ed within a country’s borders during a given period. 1.3.1.3. Net Exports of Goods
and 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 service
s 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 acquir
ed by households, whether by purchase in general, or by transfer from government
units, and used by them for the satisfaction of their needs and wants. It is de
rived from their final consumption expenditure by adding the value of social tra
nsfers in kind receivable. 1.3.1.5. Public Consumption : Public Consumption refe
rs to the final consumption expenditure of the government, which consists of exp
enditure, including imputed expenditure, incurred by general government on both
individual consumption goods and services and collective consumption services.
20
1.3.2. EXTERNAL SECTOR 1.3.2.1. Net Foreign Direct Investment : Net Foreign Dire
ct Investment refers to the difference between inflows of direct investments fro
m nonresident investors to the reporting economy and outflows due to direct inve
stment abroad. Direct investment is as defined by national authorities. 1.3.2.2.
Net Portfolio Investment : Net Portfolio Investment refers to difference betwee
n inflows and outflows of portfolio investment flows. 1.3.2.3. Overall Balance o
f Payment Position : Overall Balance of Payment Position is a statistical statem
ent that systematically summarizes, for a specific period, the economic transact
ions of an economy with the rest of the world. It is the sum of the current acco
unt balance; capital and financial account balance; and net errors and omissions
. 1.3.2.4. Total External Debt Outstanding : Total External Debt Outstanding is
the sum of bank loans, debt securities issued abroad, non-bank trade credits, mu
ltilateral claims, and official bilateral loans. Bank loans include loans from b
anks in 18 major industrialized countries and six offshore centers. Debt securit
ies issued abroad refers to money market instruments, bonds, and notes issued by
both public and private sector borrowers. Official bilateral loans refer to con
cessional aid and other loans provided mainly for development purposes.
21
3. INDIA AND ASEAN – A STUDY OF FREE TRADE AGREEMENT
3.1 PERFORMANCE TRADE INDICATOR IN INDIA AND ASEAN 3.1.1. EXPORT INTENSITY INDEX
OF ASEAN MEMBER WITH INDIA. INDI Export Intensity Index of ASEAN member with In
dia (Figure 3.1.1) Indicates the Trade India; .1.1) Between ASEAN with partner I
ndia from year 2005 to 2008. Here, Indonesia, Malaysia, Myanmar and Singapore ha
s high degree Export Intensity with partner Indi But in India. Cambodia, Philipp
ines 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 INDEX
14 12 10 8 6 2005 4 2 0 India With ASEAN India India India With India India Indi
a With 2006 2007 2008
VALUES OF TRADE
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With Indi
a With With With COUNTRIES
Sources: Complied by Author ___________________________________________ ________
_______________________________________ Refer to Annexure 1.1.( Export Intensity
Index of ASEAN member with India) (
(Figure:3.1.1)
22
3.1.2. EXPORT GROWTH OF ASEAN MEMBERS WITH INDIA Export Growth of ASEAN members
with India (Figure 3.1.2) Indicates the trade India; ) between the ASEAN with pa
rtner India from year 2005 to 2008. There is no trade between Cambodia and India
i.e 0 Export Growth, but there is a Negative Export with Philippines with India
in year 2005, but In year 2008 trading between Vietnam with ppines India. Refer
to Annexure 1. nnexure 1.2.
EXPORT GROWTH
350
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 With
India With With COUNTRIES
Sources: Complied by Author _________________________________________ __________
______________________________________ Refer to Annexure 1.2 ( Export Growth of
ASEAN members with India xport India)
(Figure: 3.1.2)
23
3.1.3. IMPORT GROWTH OF ASEAN MEMBERS WITH INDIA Import Growth of ASEAN members
with India (Figure 3.1.3) Indicates the Trade India; .1.3) between the ASEAN wit
h partner India from 2005 to 2009. Here, The Import in 2005 is high between Sing
apore 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 partne
r India. In 2008 i has high trade with Indonesia with India. As Outlined in it a
. Annexure 1.3.
IMPORT GROWTH
250
200
150 VALUE OF TRADE
100
2008 2007 2006
50
2005
0 India -50 With ASEAN India India India With India India India With
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With With
India With With COUNTRIES
Sources: Complied by Author _______________________________ ____________________
__________________________ Refer to Annexure 1.3 ( Import Growth of ASEAN member
s with India) mport
(Figure: 3.1.3)
24
3.1.4. TOTAL TRADE GROWTH OF ASEAN MEMBERS WITH INDIA Total Trade Growth of ASEA
N members with India (Figure 3.1.4) Indicates the trade India; .1.4) between the
ASEAN with partner India from 2005 to 2009 also the trade possibility between t
wo countries. In 2008 the trade is high with Vietnam with partner India. As in h
igh 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
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With Indi
a With With With COUNTRIES
Sources: Complied by Author _________________________________________ __________
______________________________ Refer to Annexure 1.4 ( Total Trade Growth of ASE
AN members with India )
(Figure:3.1.4)
25
3.1.5. TRADE INTENSITY INDEX OF ASEAN MEMBERS WITH INDIA
Trade Intensity Index of ASEAN member with India (Figure 3.1.5) Indicates the Tr
ade India; .1.5) between the ASEAN with partner India from 2005 to 2009. There i
s no trade in year 2009. In 2008 the trade is with Myanmar is high and lesser tr
ade with Philippines and Cambodia. So, the total trade intensity is with trading
with Myanmar. As in Annexure 1.5.
TRADE INTENSITY INDEX
30
25
VALUE OF TRADE
20
15 2008 10 2007 2006 5 2005
0 India With ASEAN India India India With India India India With
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With Indi
a With With With COUNTRIES
Sources: Complied by Author ____________________________________________ Refer t
o Annexure 1.5 ( Trade Intensity Index of ASEAN members with India)
(Figure: 3.1.5)
26
3.1.6. EXPORT SHARE OF ASEAN MEMBERS WITH INDIA Export Share of ASEAN members wi
th India (Figure 3.1.6) Indicates the Trade between India; .1.6) the ASEAN with
partner India from 2005 to 2009. In 2006 to 2009 the trade is high degree of tra
de with Myanmar. So, there will be FTA between Myanmar and Indi Refer India. to
Annexure 1.6.
EXPORT SHARE
60
50
VALUR OF TRADE
40
30 2008 20 2007 2006 2005 10
0 India With ASEAN India India India With India India India With
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With With
India With With COUNTRIES
Sources: Complied by Author ___________________________________________ ________
_______________________________________ Refer to Annexure 1.6 ( Export Share of
ASEAN members with I India)
(Figure: 3.1.6)
27
3.1.7. IMPORT SHARE OF ASEAN MEMBERS WITH INDIA Import Share of ASEAN members wi
th India, (Figure 3.1.7). Indicates the Trade between the ASEAN with partner Ind
ia from 2005 to 2009. Data Indicates that the trade between Myanmar have high wi
th partner Indi i.e it has high Integration with partner India and India lowest
Integration is between the Cambodia and Phili Philippines. Refer to Annexure 1.7
. nnexure 1.7
IMPORT SHARE
16
14
12
VALUE OF TRADE
10
8 2008 2007 2006 4 2005
6
2
0 India With ASEAN India India India With India India India With
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With Indi
a With With With COUNTRIES
Sources: Complied by Author __________________________________________ _________
___________________________________ Refer to Annexure 1.7 ( Import Share of ASEA
N members with India)
(Figure: 3.1.7)
28
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 Tra
de between the ASEAN with partner India from 2005 to 2009. It shows the value of
total 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 SHARE
12
10
8 VALUR OF TRADE
6 2005 4 2006 2007 2008 2
0 India With ASEAN India India India With India India India With
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With With
India With With COUNTRIES
Sources: Complied by Author __________________________________________ _________
_____________________________________ Refer to Annexure 1.8 ( Total Trade Share
of ASEAN members with India)
(Figure: 3.1.8)
29
3.1.9. INTRA REGIONAL TRADE SHARE OF ASEAN MEMBER WITH INDIA Intra Regional Trad
e Share of ASEAN members with India; (Figure 3.1.9) Indicates the .1.9) Intra Re
gional Trade Share between the ASEAN of 2008. In it Shows that the Intra Regiona
l Share Of Total Export, Total Import and Total Trade is more in Myanmar. i.e hi
gh 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 Intra
ASEAN Share To Total Trade 20
10
0
COUNTIRES Sources: Complied by Author __________________________________________
_ ______________________________________________ Refer to Annexure 1.9 (Intra Re
gional Trade Share of ASEAN members with India) (Figure: 3.1.9)
30
3.1.10. TRADE OPENNESS OF ASEAN MEMBERS WITH INDIA Trade Openness of ASEAN membe
rs with India (Figure 3.1.10) Indicates the Trade India; .1.10) between the ASEA
N with partner India from 2005 to 2009. A higher value indicates a more Open Eco
nomy. So, there is Open Trade Economy in Singapore in 2007; It has highest Value
of 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 Worl
d World With World World World With 2008 2007 2006 2005
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With With
With With World COUNTRIES
Sources: Complied by Author ___________________________________________ Refer to
Annexure 1.10 (Trade Openness of ASEAN members with India)
(Figure: 3.1.10)
31
3.2. FDI PERFORMANCE IN INDIA AND ASEAN.
3.2.1. FDI INFLOWS OF ASEAN MEMBERS WITH INDIA
FDI Inflows
VALUES OF FDI INFLOWS 60 50 40 30 20 10 0 India With ASEAN India India India Wit
h India India India With
2000 2001 2002 2003 2004 2005
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With With
India With With COUNTRIES
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 Indi
a India India With India India India With 2005
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With With
India With With COUNTRIES
Sources: Complied by Author
(Figure: 3.2.2)
32
The FDI (Foreign Direct Investment) Inflows of ASEAN members with India, ( Figur
e 3.2.1 ) of ASEAN and INDIA is, as it indicates that higher volume of FDI indic
ates higher capital mobility and integration in the country. The Foreign Investm
ent Inflow is high in year 2000 between India and ASEAN i.e 53.79 as compared in
year 2005 i.e 14.61 in Malaysia and lowest is 0.02 in combodia. But there is no
FDI Inflows in countries Indonesia, Myanmar, Philippines and Vietnam so there i
s 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 Infl
ow Amoung INDIA AND ASEAN. Also, it Indicates higher Capital Mobility and Integr
ation in the region. Data shows that the cumulative FDI inflow is high in ASEAN
with India i.e 161.81 and lowest is in combodia i.e 2.24 so there is high capita
l mobility is with ASEAN with partner India. in year 2005. Refer to Annexure 2.2
____________________________________________ Refer to Annexure 2.1 (FDI Inflows
of ASEAN and India) Refer to Annexure 2.2 (Cumulative FDI Inflows ASEAN and Indi
a)
33
3.2.3. FDI SHARE OF ASEAN MEMBERS WITH INDIA
FDI SHARE
VALUES OF FDI SHARE 0.6 0.5 0.4 0.3 0.2 0.1 0 India With ASEAN India India India
With India India India With
2005
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With Indi
a With With With COUNTRIES
Sources: Complied by Author
(Figure: 3.2.3)
3.2.4. CUMULATIVE FDI SHARE OF ASEAN MEMBERS WITH INDIA
CUMULATIVE FDI SHARE
1.6 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
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With Indi
a With With With COUNTRIES
Sources: Complied by Author
(Figure: 3.2.4)
34
In (Figure 3.2.3) of FDI Share of ASEAN members with India, Indicates there is h
igher .2.3) ndicates share amoung ASEAN and Malaysia shows stronger preference f
or the ASEAN and moung Malaysia i.e 0.49; as well as higher Degree of Integratio
n. Refer to Annexure 2.3 nnexure Cumulative FDI Share of ASEAN members with Indi
a, (Figure 3.2.4) Indicates that there .2.4) is A higher volume of FDI share amo
ung INDIA AND ASEAN and Malaysia. Also, it moung Malaysi Indicates higher Capita
l 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 OPENNESS
180 160 140 120 100 80 60 40 20 0 India With ASEAN India India India With India
India India With VALUES OF TRADE
2005
Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam With With With
India With With COUNTRIES
Sources: Complied by Author
(Figure: 3.2.5)
In the (Figure 3.2.5) of FDI Trade Openness of ASEAN members with India, Indicat
es .2.5) Shows higher value of trade with Singapore also Indicates more Open Eco
nomy of Singapore. Refer to Annexure 2.5. nnexure
___________________________________________ Refer to Annexure 2.3 (FDI Share of
ASEAN members and India ) Refer to Annexure 2.4 (Cumulative FDI Share of ASEAN m
embers and India) Refer to Annexure 2.5 (FDI Openness of ASEAN members and India
)
35
3.3. ECONOMIC PERFORMANCE IN INDIA AND ASEAN 3.3.1. EXTERNAL SECTOR OF ASEAN MEM
BERS WITH INDIA The External Sector of ASEAN members with India, (Figure 3.3.1)
Indicates, Overall BOP (Balance of Payment) Indicates that the Economy transacti
on with rest of the world is high in Cambodia. Total external debt is high in Si
ngapore. 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 (% Of
GDP)
20%
Net Direct Investments (% Of GDP)
0%
-20%
COUNTRIES (Figure: 3.3.1)
Sources: Complied by Author ____________________________________________ Refer t
o Annexure 3.1 (External sector of ASEAN members with India nal India)
36
3.3.2. REAL SECTOR AND PRICE GDP CONTRIBUTION OF ASEAN MEMBERS WITH INDIA The Re
al sector Price of ASEAN members with India, (Figure 3.3.2) Indicates, The Expor
ts of Goods and Non Non-Factor Services less Imports of Goods and GDP is high in
Indonesia and India. The total value of Gross Fixed Capital formation Indicates
GDI is more in Singapore. And value of the consumption goods and services acqui
red by households Private Consumption And Public consumption is more in Indonesi
a. Refer to Indonesi Annexure 3.2.
REAL SECTOR AND PRICE GDP CONTRIBUTION 2008
60
50
VALUES OF REAL SECTOR AND RPICE GDP
40 Export of Goods and Non Factor Services Reciept Growth 30 GDP Growth Gross Do
mestic 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 ASEAN
members with India) India
37
4. FINDING AND SUGGESTION
Various Parameters have been taken to judge the Trade between the ASEAN Countrie
s with INDIA i.e the Trade and FDI performance to Find Trade Flexibility .and Cu
mulative FDI Share, FDI Openness, FDI Inflows, FDI Share, FDI Growth And Economi
c and Financial Indicators which shows the External and Real Sector Price GDP co
ntribution towards the ASEAN with partner India. Research found that after consi
dering Various Trade performance Parameter, the Import and Export Trade with Res
pect to Different Economies. The Trade performance Indicates high Degree of Expo
rt and Import. The various indicators taken is Export Intensity Index, Export Gr
owth, Import Growth, Total Trade Growth, Trade Intensity Index, Export Share, Im
port Share, Total Trade Share, Intra-Regional Trade Share and Trade Openness. If
India Trades with Cambodia and Myanmar and if India has trade with respect to w
orld (Open Trade) then it should trade with Singapore. The analysis Shows that t
he trade between India and world (Trade of Import and Export of India with World
and ASEAN) in Open Economy is with Singapore i.e without any Restriction. Trade
share is more if trade is done with Singapore where as Cambodia and Myanmar is
Marginal. As Outlined in Annexure 1. Foreign Direct Investment performance has b
eing considered to judge the Inflow and outflow of the Investment / Capital of C
ountries 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 sha
re, Cumulative FDI share and FDI Openness. Result proved that the capital is fre
ely movable between INDIA and ASEAN; and the high share comes from ASEAN (Strong
er Preference is with ASEAN) but, more Open Economy is seen with Singapore. So t
here is no Restriction of FDI inflow and Outflow in Singapore the Capital Transa
ctions, Resident Investment Abroad, Non-resident Investment can freely move. So,
it should Give More Prefrence to Singapore as Marginal to ASEAN. As in Annexure
2.
38
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 G
DP 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 and
Cambodia where it has more GDP. The Real NDI and Balance of Payment is in Cambod
ia, 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 as
Marginal concered towards Cambodia. As Outlined in Annexure 3. Recommendation to
this paper; Trade should be done with Cambodia, Singapore and Myanmar Because t
he performance of trade integration is Successful / high in Trading with Cambodi
a, Myanmar and Singapore with partner India. Hence, The Research has also seen t
hat the GDP growth is increasing in India and Cambodia. So there is Free trade Z
one between India and ASEAN (Cambodia, Myanmar and Singapore).
39
ANNEXURE
ANNEXEURE – 1 - PERFORMANCE OF TRADE INDICATOR IN INDIA AND ASEAN. Annexure 1.1 Ex
port 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 India
ASEAN With INDIA Cambodia With India Indonesia With India Malaysia With India My
anmar 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
Source: IMF Directions Of Trade Statistics, Various Issues.
40
Annexure 1.3 Import Growth of ASEAN members with India ASEAN Cambodia Indonesia
Malaysia Myanmar Philippines Singapore Vietnam With With With With With With Wit
h With India India India India India India India India N/A -4.55 14.67 6.31 21.6
8 46.34 0.42 17.91 64.51 33.76 21.23 19.22 16.42 19.72 47.70 24.48 112.12 14.36
54.53 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 A
SEAN and India
ASEAN Cambodia With With India India Indonesia With India Malaysia With India Ph
ilippines 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
Source: IMF Directions Of Trade Statistics, Various Issues.
Trade Intensity Index
Year 2005 2006 2007 2008 2009 ASEAN With India Cambodia With India Indonesia Wit
h India Malaysia With India Myanmar With India Philippines With India Singapore
With 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/A
41
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
Source: IMF Directions Of Trade Statistics, Various Issues.
Annexure 1.6 Export Share of ASEAN members with India
ASEAN With India 2.27 2.49 2.89 3.20 N/A Cambodia With India 0.00 0.01 0.05 0.06
N/A Indonesia With India 3.36 3.36 4.33 5.22 N/A Malaysia Myanmar With With Ind
ia India 2.80 12.16 3.19 3.33 3.71 N/A 14.58 15.22 12.65 N/A Philippines Singapo
re 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
Source: IMF Directions Of Trade Statistics, Various Issue
Annexure 1.7 Import Share of ASEAN members with India
ASEAN With India 1.48 1.60 1.80 2.12 N/A Cambodia With India 0.65 0.92 0.89 0.80
N/A Indonesia With India 1.82 2.30 2.16 2.47 N/A Malaysia With India 0.96 1.02
1.40 1.97 N/A Myanmar Philippines Singapore With With With India India India 3.4
2 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 Wit
h India 1.62 1.96 2.16 2.59 N/A
Year 2005 2006 2007 2008 2009
Source: IMF Directions Of Trade Statistics, Various Issue
Annexure 1.8 Total Trade Share of ASEAN members with India
ASEAN With India 1.90 2.08 2.38 2.67 N/A Cambodia With India .30 .42 .57 .55 N/A
Indonesia With India 2.74 2.96 3.47 3.78 N/A Malaysia Myanmar Philippines Singa
pore Vietnam With With With With With India India India India India 1.98 7.87 .4
8 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 2.81
3.10 N/A 1.38 1.73 N/A
Year 2005 2006 2007 2008 2009
Source: IMF Directions of Trade Statistics, Various Issues
42
Annexure 1.9 Intra Regional Trade Share of ASEAN members with India Countries Ca
mbodia Indonesia Malaysia Myanmar Phillipnnes Singapore Vietnam ASEAN Intra ASEA
N Share To Total Export 7.1 19.8 25.9 58.2 14.4 42.0 16.2 27.6 Intra ASEAN Share
To Total Import 36.2 31.7 24 45.5 25.3 30.3 24.5 25.9 Intra ASEAN Share To Tota
l 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. ASEA
N Free Trade Area (AFTA) units, national statistics offices, customs departments
/agencies, or central banks)
Annexure 1.10 Trade Openness of ASEAN members with India
ASEAN With World 88.48 90.12 122.09 111.55 N/A Cambodia With World 30.36 33.95 3
5.34 42.41 N/A Indonesia With World 50.15 44.43 43.65 52.03 N/A Malaysia With Wo
rld 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 355.4
3 367.40 337.34 362.31 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
43
ANNEXEURE – 2 - FDI PERFORMANCE IN INDIA AND ASEAN. Annexure 2.1 FDI Inflows of AS
EAN members with India
ASEAN With India Cambodia With India Indonesia With India Malaysia With India My
anmar 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 India
ASEAN With India 161.81 Cambodia With India 2.24 Indonesia With India Malaysia W
ith 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 India
Year 2005 ASEAN With India 0.49 Cambodia With India Indonesia With India Malaysi
a Myanmar Philippines Singapore Vietnam With With With With With India India Ind
ia India India 0 0 0 0 0.49
0
0
Source: UNCTAD FDI database, Various Issues.
44
Annexure 2.4 Cumulative FDI Share of ASEAN members with India
ASEAN With India 1.42 Cambodia With India 0.01 Indonesia With India Malaysia Wit
h India 0.50 Myanmar With India Philippines With India 0.03 Singapore With India
0.87 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 India
ASEAN 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 Singa
pore 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
45
ANNEXEURE – 3 - ECONOMIC PERFORMANCE IN INDIA AND ASEAN Annexure 3.1 External Sect
or 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 Ove
rall 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 Indi
a
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 Fin
ancial Statistics Online,09/feb/2009 IMF International Financial Statistics Onli
ne, 09/feb/2009 IMF International Financial Statistics Online, 15/aug/2010
Annexure 3.2 Real Sector And Price GDP Contribution of ASEAN members with India
Export 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 Pusat
Statistik, 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
46
ABBREVIATIONS
ARF ASEAN Regional Forum ASEAN + 4 Indonesia, Malaysia, Philippines, and Thailan
d. ASEC ASEAN Secretariat. APEC Asia Pacific Economic Cooperation. CECA Comprehe
nsive Economic Cooperation Agreement. DIC Direct Investment Capital. EU European
Union. EII Export Intensity Index. FTA Free Trade Agreements. FDI Foreign Direc
t Investment. GRC Global Relocated Capital. GATS General Agreement on Trade in S
ervices. GDP Gross Domestic Product. GDI Gross Domestic Investment. IMF Internat
ional Monetary Fund. IT Information Technology. IPA India s Preferential Agreeme
nts. Lao PDR Lao People’s 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 Cooper
ation and Development. OPEC Organization of the Petroleum Exporting. OREI Office
of Regional Economic Integration. PCOMP Philippine Composite Index. PRC People’s
Republic of ChinAnnexure PMI Purchasing Managers’ Index. PTR Preferential Tariff R
ates. RTA Regional Tariff Agreement. SME Small And Medium Sized Enterprise. SEAC
South-East Asian Countries. SNA System of National Accounts. UNCTAD United Nati
ons Conference on Trade and Development. WTO
47
ASEAN Association of Southeast Asian Nations. BOP Balance Of Payments. BPM Balan
ce of Payment Manual 5th Edition. Nominal Gross Domestic
World
Trade
Organisation
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