India-ASEAN FTA: A case study of natural rubber sector in India

Abstract

With the implementation of its "Look East Policy" in 1991, India began to interact with the Association of Southeast Asian Nations (ASEAN). India has been pushed to pursue better ties with these nations by ASEAN's political and strategic significance in the greater Asia-Pacific region and its potential to become a significant trade and investment partner of India. In 1992, India joined ASEAN as a partner in sectoral dialogue. During the fifth ASEAN summit in Bangkok in 1995, ASEAN invited India to join as a full dialogue partner due to shared interests .In 1996, India also joined the ASEAN Regional Forum (ARF). Since 2002, India and ASEAN have held annual summit-level meetings. In 2004, discussions began. The framework agreement for the ASEAN-India Free Trade Agreement (AIFTA) in goods was reached in August 2009, and implementation got underway on January 1st, 2010. Over 4000 commodities, including chemicals, textiles, electronics, and machinery, were exempt from tariffs thanks to the FTA. According to the agreement, 3200 of the 4000 commodities would be free of all duties by 2013 and the remaining goods would follow suit by 2016.