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ASEAN-INDIA DEVELOPMENT and COOPERATION REPORT 2021 Avenues for Cooperation in Indo-Pacific

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ASEAN-INDIA DEVELOPMENT and COOPERATION REPORT 2021 Avenues for Cooperation in Indo-Pacific ASEAN-INDIA DEVELOPMENT AND COOPERATION REPORT 2021 Avenues for Cooperation in Indo-Pacific ASEAN-India Development and Cooperation Report 2021 Avenues for Cooperation in Indo-Pacific Please cite this Publication as: AIC-RIS (2020). ASEAN-India Development and Cooperation Report 2021: Avenues for Cooperation in Indo-Pacific, ASEAN-India Centre (AIC) - Research and Information System for Developing Countries (RIS), New Delhi. © AIC & RIS, 2020 Published in November 2020 by: Zone IV B, 4th Floor, India Habitat Centre Lodhi Road, New Delhi 110 003, India Tel.: +91-11-24682177-80; Fax: +91-11-24682173-74 E-mail: [email protected]; [email protected] Website: www.ris.org.in; http://aic.ris.org.in ISBN: 81-7122-157-2 ASEAN-India Development and Cooperation Report 2021: Avenues for Cooperation in Indo-Pacific 3 Contents Foreword by Chairman, RIS .............................................................................................................................v Preface by Director General, RIS................................................................................................................... vii Message from Editor ........................................................................................................................................ix Acknowledgements ..........................................................................................................................................xi List of Contributors ...................................................................................................................................... xiii List of Illustrations ..................................................................................................................................... xvii List of Abbreviations ................................................................................................................................... xxiii Executive Summary .................................................................................................................................. xxxiii Introduction ...................................................................................................................................................1 1. Growth Outlook and Key Development Challenges in the Covid-19 Period .................................21 2. ASEAN-India Trade Relations: Emerging Trends, Challenges and Opportunities ......................37 3. India-ASEAN Services Trade: Prospects and Challenges ..................................................................71 4. ASEAN-India Investment Relations: Emerging Trends and Prospects ...........................................87 5. ASEAN-India Production Networks in Covid-19 Times ................................................................115 6. Dealing with Non-Tariff Measures (NTMs) between ASEAN and India .....................................147 7. E-Commerce and Digital Connectivity: Strengthening India-ASEAN Collaboration .................175 8. ASEAN-India Trade Corridors: Current Status, Challenges and Way Forward..........................193 9. ASEAN-India Energy Cooperation: New Frontiers of Opportunities ..........................................217 10. Dealing with Corona Pandemic: ASEAN–India Cooperation .....................................................239 11. Development Partnership: ACMECS and CLMV ...........................................................................253 12. Scaling up People–to–People Linkages between ASEAN and India: Education and Tourism .......................................................................................................................275 13. India–ASEAN Maritime Security Cooperation: The Indo-Pacific Context .................................287 14. Indo-Pacific Cooperation: AOIP and IPOI .......................................................................................309 5 Foreword Ambassador (Dr.) Mohan Kumar Chairman, RIS It gives me immense pleasure to write the Foreword of the ASEAN-India Development and Cooperation Report 2021. RIS has continued with the tradition of coming out with this Report since 2015 and the ASEAN-India Centre (AIC) of the RIS deserves credit for the same. It is now common knowledge that ASEAN is the lynchpin of India’s Act East Policy. Both India and ASEAN are strategic partners and this strategic partnership will have a profound impact on the future of Asia. In this context, it is useful to note that both ASEAN and India share a common vision for both Asia and the Indo-Pacific region. An Asia which is multipolar and an Indo-Pacific region which is open, free, inclusive and rules-based is in the vital interest of both India and ASEAN. The principle of ASEAN-centrality in the concept of Indo-Pacific is by now well accepted by all stakeholders. The ASEAN-India Development and Cooperation Report 2021 (AIDCR 2021) has provided us new ideas and suggestions in deepening the ASEAN-India Strategic Partnership as well as Indo-Pacific relations. In the backdrop of Covid-19 and the unfolding global order, the AIDCR 2021 is aimed at providing a comparative analysis of the ASEAN-India economies; examine the impact and implications of ASEAN-India integration; assess policy priorities, effectiveness, implementation imperatives and challenges; and discuss the themes central to the economic sustainability of the region, including public and foreign policy, trade facilitation, e-commerce and digital connectivity, energy cooperation and opportunities in the manufacturing and services sectors. This Report has discussed several key issues which are relevant from the point of view of deepening the ties between India and ASEAN. In particular, it spells out the opportunities and outlines the challenges to unlock the ASEAN-India trade and regional value chain potential in the post-Covid-19 period. It also takes into account the discussions held in the recently held ASEAN-India Network of Think-Tanks (AINTT) roundtable. The AIDCR is a flagship publication of the ASEAN-India Center (AIC) of the RIS. The very first report came out in 2015 and since then, the report has had a deep impact on literature and research work among scholars, diplomats and the think-tank community. I would like to record my appreciation of the efforts that have been made by my senior colleague, Dr. Prabir De, and his Team, in bringing out this Report. I am confident that this publication will be a valuable reference point for policymakers, academics and scholars. Mohan Kumar Preface Prof. Sachin Chaturvedi Director General, RIS The present edition of the ASEAN-India Development and Cooperation Report 2021: Avenues for Cooperation in Indo-Pacific is being launched at a time when Covid-19 has spread its vicious tentacles all over the world and no respite forthcoming. The unprecedented health, safety and economic calamity resulting from the pandemic has shaken the whole world, calling for immediate course correction for the socio-economic and healthcare cooperation and integration at bilateral, regional, sub-regional and multilateral levels. This process calls for moving forward on the basis of the true philosophy of ‘One World’. Fortunately, there is the strong inclusive agenda of Sustainable Development Goals to guide us. Thus, there is an urgent need to follow with true spirit and utter commitment the directive principles as enshrined in the Agenda 2030. As is well known, RIS has always been at the forefront since 1992 in providing effective analytical support for deepening socio-economic integration among India and ASEAN member countries. The present Report is a firm step in that direction with complete emphasis on strengthening ASEAN-India cooperation in view of the insurmountable challenges thrown up by the Pandemic at various fronts. The Report has 14 chapters that examine in depth the different aspects of the issues related to growth and development challenges in the Covid-19 era; emerging trends and new challenges in ASEAN-India trade relations; such as trade in services; production networks; non-tariff measures (NTMs); E-commerce and digital connectivity; trade corridors; energy cooperation; dealing with Corona pandemic; development partnership; people-to-people linkages; maritime security cooperation; and Indo-Pacific cooperation. Apart from examining in depth these broad themes, the Report in view of India’s ‘Act East Policy’ also makes specific recommendations and suggestions for way forward towards moving in the desired direction for robust ASEAN-India partnership. As per the vision, strong ASEAN- India ties are also vital for development of our North-East Region. Further, enhancing and boosting ASEAN-India economic cooperation is imperative for our engagements with: BIMSTEC and Mekong-Ganga Cooperation processes, CLMV and Indo-Pacific. I convey sincere thanks to the Ministry of External Affairs, Government of India for their support and also to RIS Governing Body and Chairman, RIS for their guidance. I also take this opportunity to compliment the eminent experts, my senior colleague Dr Prabir De, Coordinator, ASEAN-India Centre at RIS, and his team for preparing this valuable Report. It would surely be found immensely useful by policy makers, academics, practitioners and stakeholders. Sachin Chaturvedi Message from Editor Dr. Prabir De Professor, AIC, RIS ASEAN and India are bound together by their shared culture and heritage. Relation with ASEAN is one of the cornerstones of India’s foreign policy. India has been increasingly engaged with
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