ASEAN-India Economic Relations: Low Base, Large Potential

Abstract

Why do ASEAN and India have such a muted economic relationship? This Perspective looks into the matter and discusses the political-economy challenges that is restraining the relationship to advance further. It concludes that although the absolute levels of trade and investment are low due to India’s approach to trade policy and to the mismatch in sectoral interest in trade negotiations, there are economic upsides, given the Indian diaspora in ASEAN countries, improved air connectivity, services trade complementarities and India’s quest with domestic reform.