The ASEAN leaders are working towards realization of the ASEAN Economic Community by 2015 and strengthening the existing bonds — ASEAN+3 and ASEAN+6. India became the full dialogue partner of ASEAN in 1996 and a participant in the East Asian Summit.

After the signing of the India-ASEAN Free Trade Agreement in goods in 2009, it became effective from January 1, 2010. With a view to widen the existing relations an agreement on trade in services and investment under an overarching Comprehensive Economic Partnership Agreement (CEPA) is likely to be finalized this year. The proposed CEPA will include education, healthcare and tourism.

“As the country coordinator for the ASEAN-India FTA, we hope that more progress will be made when negotiators meet in Brunei later this month,” said Malaysia’s Minister of International Trade and Industry, Dato Seri Mustapa Mohamed while delivering his keynote address at the inauguration of the 5-day First India-ASEAN Business Fair and Business Conclave here on Wednesday.

India-ASEAN FTA in goods has so far been implemented by eight out of 10 ASEAN countries. India-ASEAN bilateral trade in 2010 had peaked to $50.33 billion, which above the target of $50 billion fixed at the 6th India-ASEAN Summit in Singapore in 2007. India’s exports to ASEAN accounted for $22.52 billion and its imports from ASEAN accounted for $27.81 billion. India-ASEAN bilateral trade grew by a healthy 22% over the previous year.

“With the coming into force of the India-ASEAN Trade in Goods Agreement, both sides are confident that the trade target of US$ 70 billion by 2012 would also be achieved”, Indian Commerce and Industry Minister, Anand Sharma said.

He said that India and ASEAN were moving close to sign a CEPA. India has already signed a CEPA with Singapore and a CECA with Malaysia and negotiating similar agreements with Thailand and Indonesia.

Sharma said that the Indian government ’s proposed new manufacturing policy will be to attract large investments and technology from the ASEAN region by deepening the existing partnership between India and ASEAN. This would make go a long way in making India a large manufacturing hub that can provide large employment opportunities in the country.

In the next five years India will require $1 trillion investment in modernizing and upgrading its infrastructural facilities such as ports, roads, railways and shipping to bring them on a par with global standards. A lot of investment in these areas was expected to flow from the ASEAN region, he said.

Sharma said in 2012 trade ministers of India and ASEAN would assemble here in New Delhi to celeberate the 20th anniversary of India’s ‘Look East Policy’. During the meeting, new targets for enhancing commercial activities between India and ASEAN would be set.

About 270 companies from ASEAN region and 200 companies from India are participating in this First India-ASEAN Business Fair and Business Conclave. Indian economy is expected to grow between 8.75% and 9.25% in 2011 and 2012 and the ASEAN member states are expected to record GDP growth rates ranging from 5.2% to 7.5%

The ASEAN Ministers who attended the business conclave include, Minister of Foreign Affairs and Trade, Brunei, Lim Jock Seng, Senior Minister & Minister of Commerce, Cambodia, Cham Prasidh, Minister of Industry & Commerce, Laos, Nam Viyaket, Minister of International Trade and Industry, Malaysia, Mustapa Mohamed, Director General, Ministry of National Planning and Economic Development, Myanmar, U Aye Ko, Secretary, Trade & Industry, Philippines, Gregory Domingo, Minister for Trade and Industry, Singapore, Lim Hng Kiang, Minister of Commerce, Thailand, Porntiva Nakasai and Deputy Minister of Industry and Trade, Vietnam Nguyen Thanh Bien.

The visiting ministers called upon the Indian Prime Minister, Dr Manmohan Singh and discussed with him the global food security situation and rising prices of commodities particularly crude oil. Sharma held bilateral discussions with his counterparts from Thailand, Philippines and Singapore.

The Deputy Secretary General for ASEAN Economic Community, Sundram Pushpanathan pointed out that once the ASEAN-India Free Trade Area is fully implemented by all the 10 ASEAN nations and India-ASEAN CEPA is finalised, it will pave the way for the creation of one of the world’s largest free trade areas with a market of almost 1.8 million people and a combined GDP of $ 2.8 trillion.

He said that the ASEAN-India FTA would see further tariff liberalisation for over 90% of the products traded, including special products such as crude and refined palm oil, coffee, black tea and pepper. It will open the way for over 4,000 items to be traded duty free between ASEAN member states and India. The services and investments agreements will provide greater market access for Indian professionals, service providers as well as investors to the ASEAN region and vice-versa.

Pushpanathan said that beyond the bilateral free trade area, ASEAN and India were exploring an East-Asia-wide trade arrangement together with the other countries under the East Asia Summit. This will create the world’s economic space for the businesses of the two regions to operate and prosper.

He said that with the strengthening of relations between ASEAN and India, it is an opportune time for both sides to enhance connectivity at every level. ASEAN has launched its master plan on ASEAN connectivity, covering physical, institutional and people-to-people connectivity both within ASEAN and ASEAN with its partners. India, he said, could actively participate in this connectivity to reap mutual benefits.