Denyer discusses the opportunity that a liberalizing Burma offers India, especially as a conduit to the rest of Southeast Asia. He quotes an Indian government official, "' Now we want to engage east, not just look east,' said Siddharth, a joint secretary in the ministry of commerce and industry."
Denyer notes that although Asian Highway Number One currently connects India with its neighbor Burma, there is not a significant amount of trade between the countries, and that is a missed opportunity, which Indian leaders recognize. By trading with its immediate neighbor, India would put itself in a better position to increase trade with regional partners. It is noted that,
"Thanks to a recently signed free-trade agreement, trade between India and [the ASEAN states] grew by about 40%, to $80bn, in the fiscal year that ended last March and now represents about 10% of the country's total overseas trade.It seems that India is taking significant steps in the right direct towards leveraging its economic opportunity and engaging with regional neighbors.
Plans to extend that trading bloc to take in countries including China and Australia under a broader regional framework are also advancing."
For additional reading, a couple other articles:
From The Economist, "A walk on the wild side" provides insight into the current state of the Indian economy, including its debt problems and the setbacks this poses towards investment, a key driver for trade integration.
From the East Asia Forum, a 2011 article addressing issues which are still relevant to Southeast Asian regional trade, Regional trading agreements: Good or bad for India?
Trading with Myanmar is an interesting new option for India-however, I'm unsure as to which goods or services the country can offer India or to the rest of the world. I visited the country a couple of years ago, and though it has undeniable potential to lift millions of people out of poverty, it still remains one of the world's most isolated counties. With Obama's visit in 2012 and his decision to ease a ban on investments in Myanmar, there's a chance that foreign investment will start flowing into this largely untapped country.
ReplyDeleteThis article made me think about India's imports on arms. Last year I did research on India's position on the Arms Trade Treaty and found that they import most of their arms from the US and Germany. Perhaps if they changed the focus of trade from arms to other goods and exported more goods wanted in the West their economy could grow. Additionally, I think it is surprising that India only thought of increasing trade with Burma so recently. However, I think this is a great plan even though Burma might only have to offer very specific goods to India.
ReplyDelete