ABSTRACT
The importance of trade partners from outside the region and the need to forge economic alliances, especially with the large countries, has motivated Association of Southeast Asian Nations (ASEAN) to sign several extra-regional trade agreements, such as with China, Japan, Australia-New Zealand, South Korea and India. Since the institutionalization of the ASEAN in 1967, the Southeast Asia region has initiated numerous economic cooperation initiatives, including the ASEAN Free Trade Area (AFTA). Intra-ASEAN trade has progressively increased from approximately 19 per cent in 1993 to 25 per cent in 2010 to 24 per cent in 2015. The chapter reviews the literature on the AIFTA, while salient features of ASEAN-India trade and the AIFTA. It summarizes some suggestions to further enhance ASEAN-Indian trade in goods. H. H. Lee, et al., however, used time series analysis to test for the possible impact of a prospective free trade agreement.
