India's Engagement with Asia, Africa and Latin America *

India and the Association of Southeast Asian Nations (ASEAN) clinched on 28 August 2008 a free trade agreement that took nearly six years of talks to finalise. This ambitious project would create a new free trade area of 1.7 billion people and cover 11 countries, India and the 10 ASEAN states, with a combined Gross Domestic Product (GDP) of $2.3 trillion as of now. Projecting a ‘quantum jump’ in the overall India-ASEAN trade from the present level of $38 billion, India's Commerce and Industry Minister Kamal Nath said that the target of $50 billion by 2010 would be surpassed. ¹ Under the pact, India and ASEAN will bring down the duty to zero on 71 per cent of the products by 31 December 2012 and on another 9 per cent by 2015. Duties on another 8–10 per cent of the products would also be brought down to 5 per cent. The agreement, Nath said, was also a key milestone for the development and security of the region. ²