Traditionally, India did not have very strong economic relationship with ASEAN countries. However, much have changed in the last 12 years as "Trade between India and ASEAN countries grew from $2.5 billion in 1993 to more than $20 billion in 2005." Wow, the trade volume has increased nearly 8 folds in just 12 years! Even Indian decision makers are expecting that this number will increase to $30 billion by 2007. Well, there is still so much room for further growth simply because considering the huge size of the economies of India and ASEAN countries, this is really like a drop of rain in the desert. So, now India is actively seeking a free trade agreement.
In the previous post, I talked about SAFTA of which India is the major player. is also trying to have a free trade agreement with GCC oil-producing countries. Those of who are well informed about the Indian economy know very well that maintained a closed style of economy from 1950s to 1990. And they are walking in just the opposite road. China did a similar thing.
It seems that other third world countries should try to emulate either Indian or Chinese formula for success. Do you agree?
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