|
New Delhi: To promote trade and
investment India should formulate a roadmap for economic and
cultural relationships with the ASEAN members in pursuance of its
“Look East Policy” and thereby give a real fillip to it. The lack
of roadmap comes in the way as a hurdle to integrate with not only
ASEAN members but also with India’s immediate neighbours.
The above views were expressed by Prof. Boladas Ghoshal,
Distinguished Fellow, Institute of Peace and Conflict Studies, New
Delhi, while delivering the Valedictory address of the three-day
International Conference on “Indo-ASEAN Trade And Investment”
which concluded here on Sunday under the aegis of Institute of
Objective Studies, (IOS), in collaboration with the Indo-Arab
Economic Cooperation Forum at the India International Centre.
The function was chaired by Dr. Mohammad Manzoor Alam, Chairman of
IOS. Others who graced the dais included Dr. Abusaleh Shariff,
Chief Economist, National Council of Applied Economic Research, (NCAER),
New Delhi & Centre for Research and Debates in Development Policy;
Dr. Kumar Rajiv, Professor, Department of Management Studies,
Jodhpur University, Jodhpur; Dr. Abdul Ghaffar Usman MSI Chairman,
Committee of Regional Representative Council of Indonesia.
Continuing Prof. Ghoshal regretted that India’s approach is always
reactive and not proactive as far as “Look East Policy”. Comparing
with China he said that Chinese always do with a roadmap while in
India adhocism is the order of the day. Calling t infrastructure
diplomacy, he said China has taken a head-start and developed
infrastructure at the borders with ASEAN members while India lacks
far behind it.
“There is a big gap between what we profess and what we practice
and our approach is always reactionary”, Prof. Ghoshal lamented.
Making a Power Point presentation, Dr. Abusaleh Shariff said India
has to improve knowledge and how to use it in the right manner. It
should become a power house of production so that it could be
focal point for consumers the world over. He said India is lacking
behind ASEAN members in many respects and for this the Indian
Government will have to bring about some basic changes in its
policy and approach so that it is at par with them.
Dr. Shariff said India lags behind in FDI, (Foreign Direct
Investment), destination for: (i) Manufacturing Oil & gas,
hydro-power, green investments, investment in higher education and
School education; (ii) Opportunities in the areas of Nano-technology,
Biotechnology and Info-tech; (iii) Invest in India’s energy
sector, and other areas where India commands cutting-edge
technologies and (iv) Opportunity to move beyond trade in
merchandise goods to trade in services as well.
Dr. Kumar Rajiv speaking on the occasion said India’s economic
growth does not give a real picture. Every year there are 80
million unskilled labour coming up in India. In fact India needs
inclusive growth, he stressed.
Meanwhile, the international conference was attended by several
international delegates, members of the diplomatic corps of the
concerned nations, leading persona of the business, financial and
economic domain, academic and public opinion leaders the
Conference deliberated on various aspects of the theme across
seven sessions, besides the inaugural session.
After due deliberations for three days at the International
Conference on the theme of “Indo-ASEAN Trade and Investment” it
concluded as under:
“Given the existing and future nature of the emerging world order,
it is imperative that the nations of ASEAN and India, collaborate
to face the challenges, amongst other things, of geography and
economy. This would enable all the participating nations to meet
the issues of natural disasters, maritime security, exploitation
of oceanic wealth, more equitable distribution of resources of
water and other natural resources. That the affected parties have
much in common by way of legacy, culture, various religious
beliefs and above all a wealth of energy resources, makes this
process eminently feasible and actionable. Following the processes
of longitudinal thinking a better future can be crafted for all
participating communities.”
Six-point resolutions termed as “Delhi Declaration on ASEAN-India
Collaborative Futures” were passed by voice vote at the
valedictory function of the conference. The resolutions which were
read out by Z. M. Khan, secretary general, IOS, are as under:-
To set up a standing consultative committee under the auspices
of IOS to coordinate and take the mission of this collaborative
effort forward. The Committee is further mandated to draw up a
feasible and implementable programme to take the matter forward. A
follow up meeting should be organized under auspices of this
committee for creating a wider participatory base, as soon as the
documented action plan is ready.
The IOS and the Forum envisages a comprehensive partnership
between India and the ASEAN that extends beyond economic relations
to facilitation of high growth and sustainable development in the
region.
The IOS and Forum shall constitute high level committees
comprising decision makers and thought leaders from India and
ASEAN to steer the institutional mechanism that shall govern
partnership in areas of trade, investments and technology sharing.
The IOS and Arab Forum shall seek to open chapters in ASEAN to
promote the spirit of partnership and development.
The IOS and Arab Forum shall hold conference on Indo-ASEAN
partnership for development in the participating countries on a
rotational basis.
This Conference will endeavour and impress upon the Government of
India and the RBI to facilitate establishment of Participatory
Banking and Financial Institutions by bringing forth necessary
changes/amendments in institutional and regulatory framework.
A book in Urdu titled “Insurance in Islamic Prospective” was
released at the Valedictory function. Ravi Kishore, Secretary
General (Hony.), IAECF and Advocate, Supreme Court of India,
proposed a vote of thanks. Agha Sultan conducted the function
with aplomb.
Meanwhile, the international conference on the third day on Sunday
started with the fifth business session. The sub-theme was
“Indo-Malay World: Trade and Investment (Indonesia, Malaysia,
Brunei, Singapore and Thailand). The chairperson of the second
session was N. Shankar, Executive Director, EXIM Bank. The
panelists included Dr. Jitendra Bhandari, Area Chairperson
(Economics), Asia Pacific institute of Management, New Delhi;
Prof. Naushad Ali Azad, former Dean, Faculty of Social Sciences,
Jamia Millia Islamia, New Delhi; Dr. Dastgir Alam, Assistant
Professor in Department of Economics, AMU, Aligarh; and Dr. Jameel
Ahmad, Department of Economics, AMU, Aligarh.
Dr. Dastgir Alam made a Power Point presentation on the sub-theme:
“Indo-Malaysia Trade: A Study from Indian Perspective”. He said
his study analyses the Indo-Malaysia trade relation in Indian
perspective. It is found that Indo-Malaysia trade has moved into
three phase during a small period of time of 14 years. Initially
Indo-Malaysia trade though gets improved but registered a downfall
in the early years of 21st century and finally at the end of the
first decade of 21st century moved on recovery path but could not
reach to the position of the first phase. Further, it is observed
that in the first phase when share of Indo-Malaysia trade in total
trade is on rise, the share of Indo-Malaysia trade deficit in
total trade deficit is also high. In the second phase when the
share of Indo-Malaysia trade in total trade declined, the share of
Indo-Malaysia trade deficit in total trade deficit follows it. But
in the third phase despite a recovery in the share of
Indo-Malaysia trade in total trade, the share of Indo-Malaysia
trade deficit in total trade deficit has declined which is good
for India.
Dr. Alam said: “When we compare the export and import elasticities
with respect to Indo-Malaysia total trade it has been found that
import elasticity has edge over export elasticity. The same trend
prevails also in case of Indo-Malaysia trade deficit. Similarly,
India’s total export and import are significantly correlated with
export to Malaysia and import from Malaysia respectively. India’s
trade elasticity with respect to export to Malaysia and import
from Malaysia is inelastic but comparatively elasticity is high
with respect to export to Malaysia than import from Malaysia”.
While Dr. Jamil Ahmad, who also made a Power Point presentation,
was on the sub-theme: “India-Singapore Trade Relations: An
Assessment”.
He said his paper indicates the pattern of trade between India and
Singapore has shown sign of a change from 2005-06. Indian exports
to Singapore have shown a lower rate of growth. Indian imports
from Singapore, however, have shown a higher rate of growth.
Dr. Ahmad said the above analysis also indicates that since
2003-04, India has had a positive trade balance with Singapore
except 2007-08, this is the period of financial meltdown
world-wide. However, with export growth falling and import growth
rising, the trade balance is likely to become negative. A negative
trade balance might have implications for India’s overall trade
balance and the current account of its balance of payments.
Further, it is also clear that the changing pattern of trade
between India and Singapore might be result of the CECA
(Comprehensive Economic Cooperation Agreement between the two
countries). But it is too early to comment on CECA lets time to
grow it and will see the actual impact in the future.
So, therefore, clear from above assessment Singapore became an
ideal trading partner for India to liberalize its economy and
sought to integrate itself into the global economy. Conversely,
Singapore recognised India’s enormous economic potential and
eagerly engaged with India, he contended.
Dr. Jitendra Bhandari focused on India and Malaysia relationship
in terms of trade and investment. While Prof. Naushad Ali Azad
discussed India-ASEAN Trade in terms of performance, structure and
prospects. He said with the shift of centre of activities of world
economics the prospects of trade and investment between India and
the ASEAN members has increased manifold.
At the conclusion of the session Mr. Shankar in his presidential
remarks said that since the centre of gravity of world economics
has shifted towards East from the West and in the light of India
emerging an upcoming economic power this international conference
on trade with ASEAN members will prove to be a milestone for
future trade and investment between the two.
The sixth and the last business session of the conference was on
the theme: “Indo-other ASEAN Countries: Trade and Investment
(Philippines, Laos, Cambodia, Myanmar and Vietnam)”. It was
chaired by Dr. Rajesh Chadha, Senior Fellow, NCAER, New Delhi.
There were two speakers on the panel namely Dr. Udai Bhanu Singh,
a Senior Research Associate, Institute of Defense Studies and
Analysis, New Delhi; and Dr. Mohammad Tarique, Associate
Professor, Department. of Economics, AMU, Aligarh.
Dr. Udai Bhanu Singh presented a paper on sub-theme: “India and
Myanmar Trade: Opportunities and Challenges for India’s North
East”. Dr. Singh while making his erudite presentation said roads
are essential ingredients for successful trade. He stressed the
need for India to develop its four North Eastern states with good
road network and other facilities to facilitate them to have trade
activities with Myanmar which is the only member of ASEAN to have
land boundary with India. The neglect of North Eastern states has
given China an upper hand which has built good infra-structure on
its borders with Myanmar, he pointed out.
Dr. Singh said that with India implementing the Indo-ASEAN FTA
(Free Trade Agreement) with regard to Myanmar the implication is
that duties on many products are slashed. Even though India is
Myanmar’s fourth largest trading partner (after Thailand, China
and Singapore) the absence of basic trade facilitation has led to
Moreh ceding its place to Tamu. During President Than Shwe’s visit
to India five agreements were signed including accords relating to
economic development. Physical proximity makes Myanmar the obvious
choice for importing rice in times of a blockade or an emergency.
He said traditional links between the people of the border areas
reinforce mutual understanding at the official levels. For
instance a team from Nagaland government attended the annual
conference of a Myanmar trading company in Yangon. Through the
company a trading system will now link the Nagas of India with the
Nagas of Myanmar. Similarly, a Thai delegation visited Manipur to
establish trilateral trade between India, Myanmar and Thailand
observed: “Myanmar would be the confluence of India’s Look East
Policy and Thailand’s Look West Policy”.
Dr. Singh revealed that Myanmar drew a record $20billion foreign
investment in FY 2010-2011 which is more than what it attracted
over the last 20 years. The highest was in oil and gas and
electric power, manufacturing, real estate, hotels and tourism,
mining, transport and communications. It promulgated the Special
Economic Zone Law. Market forces and the need to supplement
Chinese aid compelled Myanmar to begin wooing foreign capital.
It’s Foreign Investment Law, 1989 sought to streamline procedures,
provide guarantees and incentives and allow repatriation of
profit.
He said Myanmar figures show that India’s investment in Myanmar
were $219.57 million as of September 2007 of which $137 million
were in energy sector (oil and gas) in the first half
(April-September) of the fiscal year 2007-08. Chinese investment
in Myanmar on the other hand is on a much larger scale and canvas.
In a two day Unified Commanders' Conference held in New Delhi in
June 2008 in which top brass of the three services, and Defence
Minister participated, it was pointed out that that the Chinese
participation in infrastructure development in Myanmar could
"affect our security." Myanmar too has fears about a Chinese
stranglehold over Myanmar economy. Myanmar has distributed for
development three of its important ports to three of its
neighbours- China (Kyaukphyu), India (Sittwe) and Thailand (Dawei).
While Dr. Mohammad Tarique in his Power Point presentation in the
same session on sub-theme: “Trade between India and ASEAN
countries” while concluding his presentation said that India has
to adopt a two-pronged strategy viz. (i) Marketing globally
dynamic products can be done with ease under multi-lateral set up
without FTAs; (ii) The regional approach like ASEAN and SAARC
could help in exporting sizeable amount of globally non-dynamic
products.
Dr. Tarique said that the differing performances of dynamic vs.
non-dynamic products are more important in the context of
multi-lateral vs. regional / bilateral trade. The share of dynamic
products is high in value terms in all RTAs while that of
non-dynamic product, it is very high in terms of numbers and quite
substantial in value terms.
He said that as India is actively engaged in becoming member of
many regional blocks, sizeable amount of such products could find
market in regional, sub-regional and bilateral trading
arrangements through negotiations. Both ASEAN and India must
display vision, courage and deftness in order to navigate the
future challenges that lie ahead for the relationship and fully
reap the benefits of mutual cooperation. An organized and
efficient planning could lead to diversification of India’s
commodity basket as well as market, he added.
He cautioned that each ASEAN member state and ASEAN as an
organisation collectively, must strengthen regulatory frameworks
and enact trade facilitation measures to reduce costs and risks to
investors. One 2010 World Bank Survey, which ranked 183 countries
in terms of the ease of doing business there, revealed dismal
performances for several ASEAN states, he pointed out.
Meanwhile, reforms must also eventually tackle the deep-seated
problems within the Indian bureaucracy, which remains notoriously
bloated, corrupt and inefficient, he added.
Dr. Tarique said with the tariff reductions the penetration of
India has not been so large as anticipated. Now, the question
arises as to why India adopted the “Looking East Asia” policy and
signed FTA with ASEAN. The reasons could be several but the major
political objective of the FTA is to counter China’s rising
influence on ASEAN. This is clearly something that many other
countries of the world (including Japan and USA) look forward to
India for the move will help to improve relationships with
countries which have powerful voices in most international forums,
he observed.
Dr. Rajesh Chadha in his presidential remarks at the end of the
session stressed the need for a Indo-ASEAN round-table conference
wherein think tank like IOS, policy makers and other noted
personalities along with media persons are included.
Meanwhile a number of personalities for their yeoman service in
their respective fields of activities were felicitated with IOS
awards on the last day of the conference also. They included
well-known Adv. Yusuf Hatim Muchhala from Mumbai; Dr. Kumar Rajiv,
Professor, Department of Management Studies, Jodhpur University,
Jodhpur; Rajiv Ranjan Jha, Special Correspondent of Bengal Post;
Prof. Akhtar-ul-Wasey, Professor and Head, Department of Islamic
Studies, Hony. Director, Zakir Husain Institute of Islamic
Studies, Jamia Millia Islamia, New Delhi & vice chairman of Delhi
Urdu Academy; Mauji Khan, retired Deputy Commissioner of
Police; and Dr. Mohammad Akhtar Siddiqui, Chairperson, National
Council for Teacher Education.
Besides felicitations a number of foreign delegates were honoured
with mementos on the occasion. They included: Dr. Abdul Ghaffar
Usman, Zaheer M. Jabir, Mas’ood Yamnoon (all three from
Indonesia); Usman Tasha from Brunei Darussalam; NRI Liaquat Al
Khan from Saudi Arabia and Mirza Sarwar Baig from Doha, Qatar.
(pervezbari@eth.net)
|
Comments
|
Quick links