chapter  1
22 Pages

India–ASEAN Trade, FDI and Growth: Exploring Challenges and Opportunities Post-global Financial Crisis

ByTran Van Hoa

The recent economic (and geopolitical) rise of China and India in the world has attracted extensive international attention, debate and policy re-evaluation. As a result, in Asia, a focus on India and the ASEAN and their relations has become a major regional research and policy study. To partly underscore this interest, the world leaders at the First East Asia Summit in Kuala Lumpur, Malaysia, on 14 December 2005, endorsed high-level studies and dialogues on an enlarged ASEAN free trade agreement (AFTA) to promote further regional integration for mutual economic and political benefi ts between the ASEAN and the world’s other trading blocs (e.g., India, the US, the EU, East Asia, Oceania, and Russia). The endorsement is consistent with India’s post-1991 reforms, the ‘Look East’ policy, ‘economic diplomacy’ and recent energy diplomacy (DFAT, 2011). While these policies have been helped by regional reform and cooperation, they have also been hindered to some extent by geopolitical regional developments, natural disasters and the global fi nancial crisis (GFC).