Final Fta

A STUDY OF FREE TRADE
AGREEMENT BETWEEN
INDIA AND ASEAN
SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION HONOURS

INTERNATIONAL
Submitted by: Supervisor:

VIVEK GOYAL VISHAL SARIN
30800002 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 titled

“__________________________________________________” carried out by
Mr.__________________________________,S/o_______________________________
has been 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 consideration for the award
of the degree of Master of Business Administration Honours International.
___________________________________
(Name & Signature of the Faculty Advisor)
Date:
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 form 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 the 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 taking great pains in guiding me.
I would like to thank “ LOVELY PROFESSIONAL UNIVERSITY ” for giving me an

opportunity of learning and contributing through this project.
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 sincere 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 abilities 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 Order
To Know Weateher The Trade Integration Is Profitable.This Integration Forms A Big
Consumer Market Of $550 Millions, People Abundant Natural Resources, Skilled And
Educated Labour Force Whch Help In Intra Asean Trade Growth.We Studied The 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 Descreptive
Research Is Done To Achiveve Our Objective. The Secondary Data Ris Taken From
Websites Like IMF,ADB( Asian Development Bank). The Data Is Then Often Used In
Formula Of Export And Import Trade To Achivev The Objective Of The Research. The
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 high 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
India. To know the relationship of Trade between between ASEAN members with
partner India. Various performance level has being taken to study the Trade between
India and ASEAN, Foreign Direct Investment and Economic Indicator.
The main objective is to study the performance of Trade between ASEAN and India
amoung the members of ASEAN countries with partner india.
Sub Objective:
 To know the future prospects of Trade in India with ASEAN countires.

 Other parts of research is the knowledge 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 Performance in India and ASEAN countries --------------------- 32
2.3. Economic Performance 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
7
LIST OF FIGURES
PERFORMANCE TRADE INDICATOR OF INDIA AND ASEAN

FIGURE NO. NAME OF CHARTS PG.NO
Export Intensity Index of
3.1.1 ASEAN members with 22
India
Export Growth of ASEAN
3.1.2 23
members with India
Import Growth of ASEAN
3.1.3 24
members with India
Total Trade Growth of
3.1.4. ASEAN members with 25
India
Trade Intensity Index of
India
Export Share of ASEAN
3.1.6. 27
members with India
Import Share of ASEAN
3.1.7 28
members with India
Total Trade Share of
India
Intra-Regional Trade
3.1.9 Share of ASEAN 30
members with India
Trade Openess of ASEAN
3.1.10 31
members with India
8
LIST OF FIGURES
FDI PERFORMANCE OF INDIA AND ASEAN
3.2.1 FDI inflows 32
3.2.2 Cumulative FDI Inflows 32
3.2.3 FDI share 34
3.2.4. Cumulative FDI share 34
3.2.5. FDI Trade Openness 35
ECONOMIC PERFORMANCE OF INDIA AND ASEAN
External sector of ASEAN

3.3.1 36
Members with India
Real Sector and Price
GDP Contribution Of
3.3.2 37
members of ASEAN with
India
9
1. INTRODUCTION
Free trade agreements (FTAs) have proved to be one of the best ways to open up foreign
markets for exporters. FTA is an agreement made between two or more countries under
which countries involved are given preferential market access. FTA’s partner countries
provide each other favorable treatment on trade, investment, provision of services and
trade facilitation as well as economic and technical cooperation.1
Exporters in India will benefit from FTAs through preferential treatment and market
access. Exporters will also enjoy cost savings from elimination or reduction of customs
duties and from mutual agreements, trade facilitating customs 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 increasing numbers
of Free Trade Agreements (FTAs) being used to represent both negotiated, many of
which feature far-reaching commitments on a broad range of regional 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 partner (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, with the signing of the ASEAN Declaration (Bangkok
Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia,
Philippines, Singapore and Thailand.4
_____________________________________
1
http://ftAnnexureicrindiAnnexureorg/ongoing-negotiations/india-asean-ftAnnexurehtml
2
http://www.aseansec.org
3
http://www.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 Asian
Nations has reacted in India in FTA This is not completely unexpected as some of the
south-east Asian countries have a much higher level of efficiency in these sectors as
compared to IndiAnnexure This article studies the tariff schedule of India and does a
preliminary evaluation of the ASEAN-India free trade agreement (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 major 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
actually help a firm from a developed country based in one of the south-east Asian
countries. (C P Chandrasekhar and Jayati Ghosh. Parthapratim Pal , 2009).
The number of bilateral and regional free trade. agreements (FTAs) involving members
of the Association of South East Asian Nations (ASEAN) is increasing.Offers an
overview 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 what 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 implications for five.
ASEAN countries: Laos, Malaysia, the Philippines, Thailand, and Vietnam. In particular,
for selected service sub-sectors and a number of criteria for rules of origin, national
research studies in these countries simulated which service providers would or would not
be eligible for preferences negotiated under an FTA Rules of origin have long been a
prominent issue in the case of goods trade. As governments enter into negotiations to
establish bilateral or regional FTAs covering trade in services. For countries in the
ASEAN region, this question applies at two levels. First, as reaffirmed by ASEAN
Economic Ministers in August 2006, ASEAN countries are committed to establishing
11
free regional trade in services by 2015. Second, ASEAN as a whole has entered into
services negotiations with China and additional negotiationswith Australia, Japan, Korea,
India, and New Zealand may well be launched. (Carsten Fink World Bank, 2007).
The WTO Doha Round and the Asia Pacific Economic Cooperation (APEC) forum, 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 countries had
ratified 10 bilateral FTAs, and they are currently negotiating some 20 bilateral FTAs,
many with non-Asian partners, including Australia, Canada, Chile, the European Union,
India, and Qatar. China has been particularly active since 2000. It has completed three
bilateral FTAs - Thailand in 2003 and Hong Kong and Macao in 2004 and is initiating
another 17 bilateral and regional FTAs. However, a regional Asian economic led by
China seems distant, even though China accounts 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 implementing

extensive trade reforms within the context of reciprocally negotiated international 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 longer-term implications of a multipolar World Trade
Organization (WTO) for European policy-makers and role the European Union might
play in the multilateral trading system in the years to come. To me there are at least four
important challenges to be faced when thinking through the implications of a multipolar
world trading 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 towards 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 mobility is
already present. These results point to the fact that the cost of adopting a single currency
may be minimal, while huge benefits could accrue from enhanced trade. a strong trend
towards regional trading blocs, the recent success of the euro has also prompted
policymakers to look for other optimum currency areas (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 exists 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 for a currency union in AsiAnnexure There are significant
complementarities in the trade structure too, which suggest that these countries should
work towards a Common 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 appears less suited for regional currency arrangement than
Europe before the Maastricht treaty, although the difference is not large. He also says that
the potential benefits and cost associated with the cuurency union for ASEAN in more
details .the precondition for a successful currency union, which focus what the experience
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
RTA, and on average every country belongs to six RTAs, variations across regions and
levels of development. India has signed one RTA with a services chapter, namely, the
India-Singapore Comprehensive Economic Cooperation Agreement (CECA) . As a
pioneering attempt, there are expectations that the CECA experience would provide
valuable inputs and serve as model of sorts for India’s future services negotiations.
Research on the CECA therefore assumes an immediate relevance, especially with
13
reference to the fact that India is actively considering enlarging its engagement in
services RTAs and embarking on the path of embedding a services chapter across the
board in past, present and future FTAs. (Kulkarni, Parashar).
The links between ownership, innovation, and exports in electronics firms in three late-
industrializing 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 foreign
ownership and innovation in increasing the probability of exporting. Higher levels of
skills, managers’ education, and capital also matter in the People’s Republic of China as
well as accumulated experience in Thailand. Accordingly, technological effort in these
countries mostly focuses on assimilating and using imported technologies rather than
formal research and development by specialized engineers. (Ganeshan Wignaraja, 2008).
14
RESEARCH METHODOLOGY
In Research Methodology
ethodology of Free Trade Agreement However, there are many problems
with this new technology. We presented step
step-by-step
step procedures to perform process
analysis for the problem in the international trade agreement. It shows that the proposed
methodology is a useful tool ffor failure analysis in the problems. This
his method can also be
applied to the related fields of failure or success analysis.
1.1. TRADE PERFORMANCE

ORMANCE IN INDIA AND ASEAN
1.1.1.
.1.1. Trade Intensity Index :
The Ratio of Trade hare of a country/region 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 determine whether the value of trade between two countries is
greater or smaller than expected, on the basis of th
their
eir importance in world trade. It is
defined as the share of one country’s exports going to a partner divided by the share of
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 on
onee indicates that trade flow between countriess is larger than
expected given their importance in world trade.
1.1.2 Export intensity index

index:
The
he ratio of export share of a country to the share of world exports going to a partner. It
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 of world exports to country j, and
Xww is the dollar value of world exports.
An index of more than one indicates th

that trade flow between countries is larger than
expected given their importance in world trade.
1.1.3 Intra-Regional
Regional Trade Share
Share:
The percentage of intra-regional

regional trade to total trade of the region, calculated using exports
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 iss exports of world to region i.. A higher share indicates a higher degree of
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 with 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 integration 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) in 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 country 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 value of imports of country i from country j expressed as a percentage share of the
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 INDIA

AND ASEAN.
1.2.1. Foreign Direct Investment (FDI) :
Some countries may allow for 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,
reinvested 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 instances of reverse
investment or disinvestment.
1.2.2. Foreign Direct Investment (FDI) Inflows :
Foreign capital reported as balance-of-payments net inflows. A higher volume of FDI

indicates higher capital mobility and integration in the country.
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 dollar value of FDI of country i to the world. A higher share indicates a
stronger 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. Cumulative 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 share of the dollar value of cumulative FDI of country i to the world. A
highshare indicates a stronger preference for the country and a higher degree of
integration.
1.2.6. FDI Openness :
Measured by the dollar value of inward FDI stock of a country expressed as a percentage
of its nominal GDP in dollars. A higher value indicates a more open economy.
____________________________________________
Note: FDI flows in the host economy by geographic origin are sourced from United Nations Conference on
Trade and Development (UNCTAD). FDI outflows by destination are derived from the reported inflows.
FDI inward stocks expressed as a percentage of GDP, as well as cross-border 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 disposals of valuables for a unit or sector.
1.3.1.2. Gross Domestic Product :
Gross Domestic Product (GDP) measures the value of final goods and services produced
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 exports of goods and non-factor services
less imports of goods and non-factor services 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 acquired 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 derived from their final
consumption expenditure by adding the value of social transfers in kind receivable.
1.3.1.5. Public Consumption :
Public Consumption refers to the final consumption expenditure of the government,

which consists of expenditure, 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 Direct Investment refers to the difference between inflows of direct
investments from nonresident investors to the reporting economy and outflows due to
direct investment abroad. Direct investment is as defined by national authorities.
1.3.2.2. Net Portfolio Investment :
Net Portfolio Investment refers to difference between inflows and outflows of portfolio
investment flows.
1.3.2.3. Overall Balance of Payment Position :
Overall Balance of Payment Position is a statistical statement that systematically

summarizes, for a specific period, the economic transactions of an economy with the rest
of the world. It is the sum of the current account 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, multilateral claims, and official bilateral loans. Bank loans
include loans from banks in 18 major industrialized countries and six offshore centers.
Debt securities issued abroad refers to money market instruments, bonds, and notes
issued by both public and private sector borrowers. Official bilateral loans refer to
concessional 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 India

India; (Figure 3.1.1)
.1.1) Indicates the Trade
Between ASEAN with partner India from year 2005 to 2008. Here, Indonesia, Malaysia,
Myanmar and Singapore has high degree Export Intensity with partner India.
Indi But in
Cambodia, Philippines an
and
d Vietnam there is lesser Export Intensity because the Value of
Trade is less than 1.0. As outlined in Annexure 1.1
EXPORT INTENSITY INDEX

14
12
10
VALUES OF TRADE
6
2005
4 2006
2007
2
2008
0
India India India
With India India With India India With
ASEAN Cambodia Indonesia Malaysia Myanmar Philippines Singapore Vietnam

With With With India With With
COUNTRIES
Sources: Complied by Author (Figure:3.1.1)

___________________________________________
_______________________________________________
Refer to Annexure 1.1.(( Export Intensity Index of ASEAN member with India)
22
3.1.2. EXPORT GROWTH OF ASEAN MEMBERS WITH INDIA
Export Growth of ASEAN members with India

India; (Figure 3.1.2)) Indicates the trade
between the ASEAN with partner 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
ppines with India in year 2005, but In year 2008 trading between Vietnam with
India. Refer to Annexure
nnexure 1.
1.2.
EXPORT GROWTH
350
300
250
200
VALUE OF TRADE
150 2005
2006
100 2007
2008
50
0
India India India
-50 With India India With India India With

COUNTRIES
Sources: Complied by Author (Figure: 3.1.2)

_________________________________________
________________________________________________
Refer to Annexure 1.2 ( Export
xport Growth of ASEAN members with India
India)
23
3.1.3. IMPORT GROWTH OF ASEAN MEMBERS WITH INDIA
Import Growth of ASEAN members with India

between the ASEAN with partner India from 2005 to 2009. Here, The Import in 2005 is
high between Singapore 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
partner India. In 2008 iit has high trade with Indonesia with India.
a. As Outlined in
Annexure 1.3.
IMPORT GROWTH
250
200
150
VALUE OF TRADE
100 2008
2007
2006
50 2005
0
India India India

-50
COUNTRIES
_______________________________
______________________________________________
Refer to Annexure 1.3 ( Import
mport Growth of ASEAN members with India)
24
3.1.4. TOTAL TRADE GROWTH OF ASEAN MEMBERS WITH INDIA
Total Trade Growth of ASEAN members with India

.1.4) Indicates the trade
between the ASEAN with partner India from 2005 to 2009 also the trade possibility
between two countries. In 2008 the trade is hig
high
h with Vietnam with partner India. As in
Annexure 1.4.
TOTAL TRADE GROWTH

250
200
VALUE OF TRADE
150
100 2008
2007
2006
2005
50
0
India India India

COUNTRIES
Sources: Complied by Author (Figure:3.1.4)
_________________________________________
________________________________________
Refer to Annexure 1.4 ( Total Trade Growth of ASEAN members with India )
25
3.1.5. TRADE INTENSITY INDEX OF ASEAN MEMBERS WITH INDIA
Trade Intensity Index of ASEAN member with India
between the ASEAN with partner India from 2005 to 2009. There is no trade in year
2009. In 2008 the trade is with Myanmar is high and lesser trade with Philippines and
Cambodia. So, the total trade intensity is with trading with Myanmar. As in Annexure
1.5.
TRADE INTENSITY INDEX

30
25
20
VALUE OF TRADE
15
2008
10 2007
2006
2005
5
0
India India India

COUNTRIES
____________________________________________
Refer to Annexure 1.5 ( Trade Intensity Index of ASEAN members with India)
26
3.1.6. EXPORT SHARE OF ASEAN MEMBERS WITH INDIA
Export Share of ASEAN members with India

.1.6) Indicates the Trade between
the ASEAN with partner India from 2005 to 2009. In 2006 to 2009 the trade is high
degree of trade with Myanmar. So, there will be FTA between Myanmar and India.
Indi Refer
to Annexure 1.6.
EXPORT SHARE
60
50
40
VALUR OF TRADE
30
2008
20 2007
2006
2005
10
0
India India India

COUNTRIES

___________________________________________
_______________________________________________
Refer to Annexure 1.6 ( Export Share of ASEAN members with IIndia)
27
3.1.7. IMPORT SHARE OF ASEAN MEMBERS WITH INDIA
Import Share of ASEAN members with India, (Figure 3.1.7). Indicates the Trade between
the ASEAN with partner India from 2005 to 2009. Data Indicates that the trade between
Myanmar have high with partner Indi
India i.e it has high Integration with partner India and
lowest Integration is between the Cambodia and Phili
Philippines. Refer to Annexure
nnexure 1.7.
1.7
IMPORT SHARE
16
14
12
10
VALUE OF TRADE
2008
6
2007
2006
4 2005
0
India India India

COUNTRIES

__________________________________________
____________________________________________
Refer to Annexure 1.7 ( Import Share of ASEAN members with India)
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 Trade
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 and Export
between Myanmar with partner Indi
India. Refer to annexure 1.8.
TOTAL TRADE SHARE

12
10
8
VALUR OF TRADE
2005
2006
4
2007
2008
2
0
India India India

COUNTRIES

__________________________________________
______________________________________________
Refer to Annexure 1.8 ( Total Trade Share of ASEAN members with India)
29
3.1.9. INTRA REGIONAL TRADE SHARE OF ASEAN MEMBER WITH INDIA
Intra Regional Trade Share of ASEAN members with India; (Figure 3.1.9)
.1.9) Indicates the
Intra Regional Trade Share between the ASEAN of 2008. In it Shows that the Intra
Regional Share Of Total Export, Total Import and Total Trade is more in Myanmar. i.e
high 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
COUNTIRES

___________________________________________
______________________________________________
Refer to Annexure 1.9 (Intra Regional Trade Share of ASEAN members with India)
30
3.1.10. TRADE OPENNESS OF ASEAN MEMBERS WITH INDIA
Trade Openness of ASEAN members with India

between the ASEAN with partner India from 2005 to 2009. A higher value indicates a
more Open Economy. 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
nnexure 1.10.
TRADE OPENNESS
1600
1400
1200
VALUE OF TRADE
1000
800
600 2008
2007
400 2006
2005
200
0
World World World
With World World With World World With

With With With With With
World
COUNTRIES

___________________________________________
Refer to Annexure 1.10 (Trade Openness of ASEAN members with India)
31
3.2. FDI PERFORMANCE IN INDIA AND ASEAN.
3.2.1. FDI INFLOWS OF ASEAN MEMBERS WITH INDIA
FDI Inflows
60
VALUES OF FDI INFLOWS
50
40
30 2000
20
10 2001
0
2002
India India India
2003
With India India With India India With 2004
2005
COUNTRIES
2.2.2.
.2.2. CUMULATIVE FDI INFLOWS OF ASEAN MEMBERS WITH INDIA
CUMULATIVE FDI INFLOWS

180
160
VALUES OF C. FDI INFLOWS
140
120
100
80
60
40
20
0
India India India
2005

COUNTRIES
32
The FDI (Foreign Direct Investment) Inflows of ASEAN members with India, ( Figure
3.2.1 ) of ASEAN and INDIA is, as it indicates that higher volume of FDI indicates
higher capital mobility and integration in the country. The Foreign Investment 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 is zero capital mobility.
As outlined in Annexure 2.1
In (Figure 3.2.2) of Cumulative FDI Inflow of ASEAN members with India, Indicates
higher volume of FDI Inflow Amoung INDIA AND ASEAN. Also, it Indicates higher
Capital Mobility and Integration 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 capital 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 India)
33
3.2.3. FDI SHARE OF ASEAN MEMBERS WITH INDIA
FDI SHARE
0.6
VALUES OF FDI SHARE
0.5
0.4
0.3
0.2
0.1
0
India India India 2005

COUNTRIES
3.2.4. CUMULATIVE FDI SHARE OF ASEAN MEMBERS WITH INDIA
CUMULATIVE FDI SHARE

1.6
1.4
VALUES OF TRADE
1.2
1
0.8
0.6
0.4
0.2
0
India India India 2005

COUNTRIES
34
In (Figure 3.2.3)
.2.3) of FDI Share of ASEAN members with India, Indicates
ndicates there is higher
share amoung
moung ASEAN and Malaysia shows stronger preference for the ASEAN and
Malaysia i.e 0.49; as well as higher Degree of Integration. Refer to Annexure
nnexure 2.3
Cumulative FDI Share of ASEAN members with India, (Figure 3.2.4)

.2.4) Indicates that there
is A higher volume of FDI share amoung
moung INDIA AND ASEAN and Malaysia.
Malaysi Also, it
Indicates higher Capital Mobility and Integration in the region. Refer to Annexure
A 2.4
3.2.5. FDI TRADE OPENNES OF ASEAN MEMBERS WITH INDIA.
FDI TRADE OPENNESS

180
160
VALUES OF TRADE
140
120
100
80
60
40
20
0 2005
India India India

COUNTRIES
In the (Figure 3.2.5)

.2.5) of FDI Trade Openness of ASEAN members with India, Indicates
Shows higher value of trade with Singapore also Indicates more Open Economy of
Singapore. Refer to Annexure
nnexure 2.5.
___________________________________________
Refer to Annexure 2.3 (FDI Share of ASEAN members and India )
Refer to Annexure 2.4 (Cumulative FDI Share of ASEAN members 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 MEMBERS WITH INDIA
The External Sector of ASEAN members with India, (Figure 3.3.1) Indicates, Overall
BOP (Balance of Payment) Indicates that the Economy transaction with rest of the world
is high in Cambodia. Total external debt is high in Singapore. Refer to Annexure
A 3.1
EXTERNAL SECTOR 2008

100%
80%
60% Total External Debt (% Of GDP)

VALUES OF EXTERNAL SECTOR
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
____________________________________________
Refer to Annexure 3.1 (External
nal sector of ASEAN members with India
India)
36
3.3.2. REAL SECTOR AND PRICE GDP CONTRIBUTION OF ASEAN MEMBERS
WITH INDIA
The Real sector Price of ASEAN members with India, (Figure 3.3.2) Indicates, The
Exports 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 acquired by
households Private Consumption And Public consumption is more in Indonesia.
Indonesi Refer to
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 Domestic Investment

Growth
20
Private Consumption Growth
Public Consumption Growth

10
-10
COUNTRIES
____________________________________________
___________________________________________
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 Countries
with INDIA i.e the Trade and FDI performance to Find Trade Flexibility .and
Cumulative FDI Share, FDI Openness, FDI Inflows, FDI Share, FDI Growth And
Economic and Financial Indicators which shows the External and Real Sector Price GDP
contribution towards the ASEAN with partner India.
Research found that after considering Various Trade performance Parameter, the Import
and Export Trade with Respect to Different Economies. The Trade performance Indicates
high Degree of Export and Import. The various indicators taken is Export Intensity Index,
Export Growth, Import Growth, Total Trade Growth, Trade Intensity Index, Export
Share, Import 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 world
(Open Trade) then it should trade with Singapore. The analysis Shows that the 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 being considered to judge the Inflow and
outflow of the Investment / Capital of Countries of INDIA AND ASEAN. The Research
paper the research Analyzes shows different type of FDI Parameter such as FDI inflows,
cumulative FDI inflows, FDI share, Cumulative FDI share and FDI Openness. Result
proved that the capital is freely movable between INDIA and ASEAN; and the high share
comes from ASEAN (Stronger Preference is with ASEAN) but, more Open Economy is
seen with Singapore. So there is no Restriction of FDI inflow and Outflow in Singapore
the Capital Transactions, 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 GDP
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 Cambodia, NPI-
GDP 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 the performance of trade integration is Successful / high in Trading
with Cambodia, Myanmar and Singapore with partner India. Hence, The Research has
also seen that the GDP growth is increasing in India and Cambodia. So there is Free trade
Zone between India and ASEAN (Cambodia, Myanmar and Singapore).
39
ANNEXURE
ANNEXEURE – 1 - PERFORMANCE OF TRADE INDICATOR IN INDIA AND

ASEAN.
Annexure 1.1
Export Intensity Index of ASEAN members with India.

Year With With With With With With With With
India India India India India India India India
2005 2.35 0.00 3.47 2.89 12.5 0.21 2.65 0.31
2006 1.92 0.01 2.60 2.47 11.29 0.19 2.18 0.26
2007 1.79 0.03 2.68 2.06 9.42 0.29 2.06 0.22
2008 1.81 0.03 2.95 2.09 7.14 0.22 1.98 0.35
Source: IMF Directions Of Trade Statistics, Various Issues.
Annexure 1.2
Export Growth of ASEAN members with India

INDIA India India India India India India India
2005 37.96 N/A 32.61 31.71 23.97 -3.69 41.25 24.42
2006 28.44 161.90 17.80 29.67 44.85 38.75 30.12 40.89
2007 30.05 321.81 45.80 14.73 11.74 104.21 30.33 30.40
2008 26.91 13.79 44.89 25.99 14.16 -20.67 19.61 116.47
40
Annexure 1.3
Import Growth of ASEAN members with India

2005 17.91 N/A -4.55 14.67 6.31 21.68 46.34 0.42
2006 24.48 64.51 33.76 21.23 19.22 16.42 19.72 47.70
2007 27.87 112.12 14.36 54.53 31.11 22.21 20.17 54.15
2008 46.24 14.17 80.50 50.71 14.16 33.56 44.49 54.34
2009 -100 -100 -100 -100 -100 -100 -100 -100
Source: IMF Directions Of Trade Statistics, Various Issue
Annexure 1.4
Total Trade Growth of ASEAN and India
ASEAN Cambodia Indonesia Malaysia Philippines Singapore Vietnam

Myanmar
Year With With With With With With With
With India
India India India India India India India
2005 29.85 N/A 20.09 17.78 19.72 15.59 43.29 3.22
2006 26.99 65.72 22.07 27.83 39.37 20.89 25.86 46.74
2007 29.27 116.23 36.58 22.94 15.28 41.03 26.38 50.93
2008 33.79 14.15 53.63 32.40 14.16 15.52 28.81 61.60
2009 -100 -100 -100 -100 -100 -100 -100 -100
Annexure 1.5
Trade Intensity Index

2005 1.89 0.30 2.72 1.97 7.83 0.48 2.31 0.99
2006 1.73 0.35 2.46 1.84 7.99 0.43 2.04 1.00
2007 1.68 0.40 2.45 1.73 6.31 0.48 1.99 0.97
2008 1.74 0.35 2.46 1.92 5.10 0.50 2.01 1.12
2009 N/A N/A N/A N/A N/A N/A N/A N/A
41
Annexure 1.6
Export Share of ASEAN members with India

With With With With With With With With
Year India India India India India India India India
2005 2.27 0.00 3.36 2.80 12.16 0.20 2.56 0.30
2006 2.49 0.01 3.36 3.19 14.58 0.25 2.81 0.34
2007 2.89 0.05 4.33 3.33 15.22 0.48 3.33 0.37
2008 3.20 0.06 5.22 3.71 12.65 0.39 3.52 0.62
Annexure 1.7
Import Share of ASEAN members with India

2005 1.48 0.65 1.82 0.96 3.42 0.72 2.03 1.62
2006 1.60 0.92 2.30 1.02 3.80 0.77 2.04 1.96
2007 1.80 0.89 2.16 1.40 3.46 0.88 2.22 2.16
2008 2.12 0.80 2.47 1.97 3.20 1.08 2.65 2.59
Annexure 1.8
Total Trade Share of ASEAN members with India

With With With With With With With With
Year India India India India India India India India
2005 1.90 .30 2.74 1.98 7.87 .48 2.32 1.00
2006 2.08 .42 2.96 2.21 9.60 .52 2.45 1.20
2007 2.38 .57 3.47 2.45 8.92 .69 2.81 1.38
2008 2.67 .55 3.78 2.95 7.84 .77 3.10 1.73
Source: IMF Directions of Trade Statistics, Various Issues
42
Annexure 1.9
Intra Regional Trade Share of ASEAN members with India
Intra ASEAN Share Intra ASEAN Share To Intra ASEAN Share To

Countries
To Total Export Total Import Total Trade
Cambodia 7.1 36.2 21.8
Indonesia 19.8 31.7 25.6
Malaysia 25.9 24 25.1
Myanmar 58.2 45.5 53.6
Phillipnnes 14.4 25.3 20.3
Singapore 42.0 30.3 36.3
Vietnam 16.2 24.5 20.9
ASEAN 27.6 25.9 26.8
Source: ASEAN Merchandise Trade Statistics Database (compiled/computed from data submission, publications
and/or websites of ASEAN Member States' national.
ASEAN Free Trade Area (AFTA) units, national statistics offices, customs departments/agencies, or central banks)
Annexure 1.10
Trade Openness of ASEAN members with India

World World World World World World World World
2005 88.48 30.36 50.15 184.46 60.75 89.69 355.43 130.75
2006 90.12 33.95 44.43 185.38 57.34 83.83 367.40 139.03
2007 122.09 35.34 43.65 173.66 52.58 73.58 337.34 156.55
2008 111.55 42.41 52.03 160.84 51.15 65.65 362.31 159.63
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 ASEAN members with India

2000 53.79 0.29 0 0.80 0 0 52.6 0
2001 25.31 0.02 0 0.39 0 0 24.9 0
2002 2.01 0 0 1.88 0 0 0 0
2003 11.80 0 0 11.80 0 0 0 0
2004 10.88 0 0 10.88 0 0 0 0
2005 14.61 0 0 14.61 0 0 0 0
Source: UNCTAD FDI Database, Various Issues.
Annexure 2.2
Cumulative FDI Inflow of ASEAN members with India
ASEAN Cambodia Indonesia Malaysia Philippines Singapore Vietnam

Year With With With With Myanmar With With With
India India India India With India India India India
2005 161.81 2.24 0 56.87 0 3.87 98.5 0
2006-
09 0 0 0 0 0 0 0 0
Source: UNCTAD FDI database, Various Issues.
Annexure 2.3
FDI Share of ASEAN members with India

2005 0.49 0 0 0.49 0 0 0 0
Source: UNCTAD FDI database, Various Issues.
44
Annexure 2.4
Cumulative FDI Share of ASEAN members with India

2005 1.42 0.01 0 0.50 0 0.03 0.87 0
2006-
09 0 0 0 0 0 0 0 0
Source: UNCTAD FDI Database, Various Issues.
Annexure 2.5
FDI Trade Openness of ASEAN members with India

2005 39.89 5.49 14.77 33.99 40.85 14.80 168.38 58.93
2006-
09 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 Sector of ASEAN members with India
Net Direct Net Portfolio Overall Balance Of

Countries Total External Debt
Investments Investments (% Payments Position
(% Of GDP)
(% Of GDP) Of GDP) (% Of GDP)
Cambodia 7.21 -0.11 3.09 0
Indonesia 0.48 0.34 -0.37 20.55
Malaysia 0 0 0 26.98
Myanmar 0 0 0 9.33
Phillipnnes .76 -1.53 -1.48 36.09
Singapore 0 -9.93 0 27626
Vietnam 0 0 0 31.17
India 0 0 0 20.66
Sources : Overall Balance of Payments Position (% of GDP), IMF International Financial Statistics
Online,09/feb/2009
IMF International Financial Statistics Online, 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
Gross Domestic Private Public
and Non-Factor
GDP Growth Investment Consumption Consumption
Countries Service Receipts
(y-o-y, %) Growth (y-o-y, Growth (y-o- Growth (y-o-
Growth (y-o-y,
%) y, %) y, %)
%)
Cambodia 0 6.69 0 0 0
Indonesia 9.48 6.06 12.62 5.33 10.42
Malaysia 1.30 4.63 -2.43 8.46 10.88
Myanmar 0 0 0 0 0
Phillipnnes -1.88 3.83 1.67 4.66 3.23
Singapore 1.27 1.14 42.75 2.44 8.11
Vietnam 0 6.18 0 0 0
India 9.48 7.45 0 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.
Ministry of Trade and Industry , 4 December 2009
46
ABBREVIATIONS
ARF ASEAN Regional Forum ASEAN Association of Southeast Asian
ASEAN + 4 Indonesia, Malaysia, Nations.
Philippines, and Thailand. BOP Balance Of Payments.
ASEC ASEAN Secretariat. BPM Balance of Payment Manual 5th
APEC Asia Pacific Economic Edition.
Cooperation.
CECA Comprehensive Economic NGDP Nominal Gross Domestic
Cooperation Agreement. Product.
DIC Direct Investment Capital. OCA Optimum Currency Areas.
EU European Union. OECD Organisation for Economic Co-
EII Export Intensity Index. operation and Development.
FTA Free Trade Agreements. OPEC Organization of the Petroleum
FDI Foreign Direct Investment. Exporting.
GRC Global Relocated Capital. OREI Office of Regional Economic
GATS General Agreement on Trade in Integration.
Services. PCOMP Philippine Composite Index.
GDP Gross Domestic Product. PRC People’s Republic of
GDI Gross Domestic Investment. ChinAnnexure
IMF International Monetary Fund. PMI Purchasing Managers’ Index.
IT Information Technology. PTR Preferential Tariff Rates.
IPA India's Preferential Agreements. RTA Regional Tariff Agreement.
Lao PDR Lao People’s Democratic SME Small And Medium Sized
Republic. Enterprise.
MTS Multilateral Trading System. SEAC South-East Asian Countries.
M&A Mergers And Acquisition. SNA System of National Accounts.
TCI Trade Complementarity. UNCTAD United Nations Conference
TII Trade Intensity Index. on Trade and Development.
WTO World Trade Organisation
47
Reference and Bibliography
ASEAN Free Trade Area (AFTA) units, national statistics offices, customs
departments/agencies, or central banks, Various Issues.
ASEAN Merchandise Trade Statistics national, Intra Regional Trade Share Various
Issues
Badan Pusat Statistik, Badan Pusat Statistik, (9 February 2010). Various Issues.
Bayoumi, Tamim and Mauro, Paolo, (December 1999). “The Suitability of ASEAN for a
Regional Currency Arrangement”. © 1999 International Monetary fund, Vol, pp. 1-24,
1999.WW/99/162
--------- Available: http://ssrn.com/abstract=880817. [Viewed on 20/11/2009]
Carsten Fink World Bank - Development Research Group (DECRG) and Deunden
Nikomborirak - Thailand Development Research Institute, (February 1, 2007). “Rules of
Origin in Services: A Case Study of Five ASEAN Countries”. World Bank Policy
Research Working Paper No. 4130.
--------- Available: http://ssrn.com/abstract=961098. [Viewed on 23/11/2009]
C P Chandrasekhar and Jayati Ghosh. Parthapratim Pal (parthapal@iimcal.ac.in) is with

Indian Institute of Management Calcutta and Mitali Dasgupta (mitalig@teri.res.in) is
with the Energy and Resources Institute, (September 19, 2009). “The ASEAN-India Free
Trade Agreement: An Assessment”. Vol xliv no 38 . [Viewed on 18/11/2009]
Department of Statistics of Malaysia, (4 December 2009), Various Issues.
48
Ganeshan Wignaraja, (November 2008). “Foreign Direct Investment, Innovation, and
Exports: Firm-Level Evidence from People’s Republic of China, Thailand, and
Philippines”. ADB Economics. Working Paper Series No. 134.
--------- Available: http://www.adb.org/economics [viewed on 28/02/2010]
General Statistics Office, (10 February 2010), Various Issues.
Hufbauer, Gary Clyde and Wong, Yee, (October 2005). “Prospects for Regional Free
Trade in AsiAnnexure Institute for International Economics”. Working Paper No. 05-12.
--------- Available: http://ssrn.com/abstract=830106 [viewed on 04/12/2009]
IMF Directions of Trade Statistics, Various Issues.
India's Monetary Integration with East and South East Asia: A Feasibility Study
(December 2003), [RIS-DP#64/2003].
Ministry of Trade and Industry, (4 December 2009), Various Issues.
National Statistical Coordination Board, (9 February 2010), Various Issues.
Parashar Kulkarni and Biplove Choudhary, “Trade in Services and India's Preferential
Agreements. Trade In Services And India: Prospects And Strategies”.
Saxena, Sweta C., (December 2003). “India's Monetary Integration with East and South
East Asia: A Feasibility Study”. RIS Working Paper No. 64/2003.
49
Simon J. Evenett, Professor of International Trade and Economic Development,
Department of Economics, University of St. Gallen, (simon.evenett@unisg.ch), (April
2007), (December 1999). “EU Commercial Policy in a Multipolar Trading System”.
Working Paper No.23
--------- Available: http://ssrn.com/abstract=984325, http://www.cigionline.org [viewed
on 15/12/2009]
UNCTAD Database, Various Issues.
Listed Websites Viewed:
http://www.aseansec.org [Viewed on 10/11/2009]
http://ftAnnexureicrindiAnnexureorg/ongoing-negotiations/india-asean-ftAnnexurehtml
[Viewed on 10/11/2009]
http://www.asean.org/about_ASEAN.html
50

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A STUDY OF FREE TRADE

SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

MASTER OF BUSINESS ADMINISTRATION HONOURS

Submitted by: Supervisor:

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled

(Name & Signature of the Faculty Advisor)

It gives an immense pleasure to me to present this research

The research paper on “ A STUDY OF FREE TRADE AGREEMENT BETWEEN

I would like to thank “ LOVELY PROFESSIONAL UNIVERSITY ” for giving me an

 To know the future prospects of Trade in India with ASEAN countires.

2.1. Performance of Trade Indicators in India and ASEAN countries -- 22

2.2. FDI Performance in India and ASEAN countries --------------------- 32

2.3. Economic Performance in India and ASEAN :

2.3.1.Real Sector and Price ------------------------------------------- 36

4. Finding and Suggestion ------------------------------------------------------------------- 38

References and Bibliography

PERFORMANCE TRADE INDICATOR OF INDIA AND ASEAN

FDI PERFORMANCE OF INDIA AND ASEAN

FIGURE NO. NAME OF CHARTS PG.NO

3.2.1 FDI inflows 32

3.2.2 Cumulative FDI Inflows 32

3.2.3 FDI share 34

3.2.4. Cumulative FDI share 34

3.2.5. FDI Trade Openness 35

ECONOMIC PERFORMANCE OF INDIA AND ASEAN

FIGURE NO. NAME OF CHARTS PG.NO

External sector of ASEAN

All three countries have little or no experience of aggreeing to and implementing

1.1. TRADE PERFORMANCE

twj is the dollar value of world trade with country j, and

Tww is the dollar value of world trade.

1.1.2 Export intensity index

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 of world exports to country j, and

Xww is the dollar value of world exports.

An index of more than one indicates th

The percentage of intra-regional

1.1.5. Trade Openness :

Measured by total trade of a country expressed as a percentage of nominal Gross

1.1.6. Export Growth :

1.1.7. Export Share :

The percentage of exports going to a partner to total exports of a country. It is computed

1.1.8. Import Growth :

1.1.9. Import Share :

The percentage of imports from a partner to total imports of a country. It is computed as

1.2. FDI ( FOREIGN DIRECT INVESTMENT ) PERFORMANCE IN INDIA

1.2.1. Foreign Direct Investment (FDI) :

1.2.2. Foreign Direct Investment (FDI) Inflows :

Foreign capital reported as balance-of-payments net inflows. A higher volume of FDI

1.3.3. Foreign Direct Investment (FDI) Share :

The inclusive sum of foreign capital reported as balance-of-payments net inflows. A

1.2.5. Cumulative Foreign Direct Investment (FDI) Share :

1.2.6. FDI Openness :

1.3.1. REAL SECTOR AND PRICE

1.3.1.1. Gross Domestic Investment :

1.3.1.2. Gross Domestic Product :

1.3.1.3. Net Exports of Goods and Non-Factor Services :

1.3.1.4. Private Consumption :

1.3.1.5. Public Consumption :