India Asean Conectivity PDF

India – ASEAN Connectivity towards
Borderless Trade Community with Special
Reference to Tamil Nadu
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Borderless Trade Community with Special
Reference to Tamil Nadu
Rayeesunisa
M.Com., M.Phil., MBA (HR), Ph.D.,
UGC - Centre for South and Southeast Asian Studies

University of Madras
Chennai-600 005
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 Copy right: Author

Borderless Trade Community with Special Reference to Tamil Nadu
University of Madras
First Published 2018
ISBN: 978-93-83071-06-7
Price: ` 400.00
Typeset and printed by aksharaa muthra aalayam, Anna Salai, Teynampet, Chennai-18,

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ACKNOWLEDGEMENT
I express my gratitude to Dr S. Manivasakan, Professor and Director,

UGC - Centre for South and Southeast Asian Studies, University of Madras,
Chennai, for his meticulous guidance, unflagging support and encouragement
and concern for quality of my thesis which has taken its present form as book.
I also thank my co-guide Dr.S.Yuvaraj, Assistant Professor, Department

of Commerce, University of Madras for his guidance and support at every stage
of my research work.
My Sincere thanks to the University Grant Commission for the Award of

Teacher Fellowship and the financial assistance extended to me for completing
the research work. I would also like to thank the Directorate of Collegiate
Education, Authorities of University of Madras and the Management and
Principal of Justice Basheer Ahmed Sayeed College for women for giving me
permission and support to complete my Ph.D programme.
I am thankful to Dr. I. Hiller Armstrong, Assistant Professor,

Mrs. S. Renuka, Technical Officer, Mrs. R. Kalaivani, Section Officer and
Research Scholars and other Administrative Staff of the UGC- Centre for South
and Southeast Asian studies for all their help and assistance.
I am indebted to Dr. Nafeesa Fathima Moinuddin, for her help rendered to

complete my research work. I am Grateful to my Mother and all my family
member for their kind cooperation and support in all my Endeavour to complete
my work successfully.
RAYEES UNISA
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CONTENTS
Acknowledgment
List of Abbreviations
List of Tables
List of Charts
List of Maps
Chapter Title Page No
I Introduction 1
II India - ASEAN Trade Relations: Progress and 33

Prosperity
III Connectivity between India and ASEAN: 79

Moving Forward Commerce and Economic
Co-operation
IV ASEAN - Tamil Nadu: Trade Integration and 150

Co - operation
V Connectivity Integration and Cooperation 178

between ASEAN and Tamil Nadu
VI Summary and Conclusion 235
Bibliography 250
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LIST OF ABBREVIATIONS
AAGR- Average Aggregate Growth Rate

APEC- Asia Pacific Economic Cooperation
AEC – ASEAN Economic Community
AFTA – ASEAN Free Trade Area

AIMTA – ASEAN – India Maritime Transport Agreement
ALBA – Bolivarian Alternative For Americas
AMU – Arab Maghreb Union
APSC – ASEAN Political Security Community
APT – ASEAN plus Three
ARF- ASEAN Regional Forum

ASCC – ASEAN Socio - Cultural Community
ASEAN – Association of Southeast Asian Nations
BIMP- – Brunei – Indonesia – Malaysia – Philippines- East Asian Growth

EAGA Area
BOT – Build Operate Transfer
CENTO – Central Treaty Organisation

CIS – Commonwealth Independent States
CLMV – Cambodia, Laos, Myanmar and Vietnam
CAGR – Compound Aggregate Growth Rate
CRIDP – Comprehensive Road Infrastructure Development Programme
CUMTA – Chennai Unified Metropolitan Transport Authority
EA – East Asia
EAS – East Asia Summit
EC – European Community
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ECOWAS – Economic Community of West African States

EU- European Union
FCL – Full Container
FDI - Foreign Direct Investment
FOB – Free On Board
FTA – Free Trade Agreement
FTAs – Foreign Tourist Arrivals
GOI – Government of India
GMS – Greater Mekong Sub Region

GSDP- Gross State Domestic Product
ICT- Information and Communication Technology
IMF- International Monetary Fund
IMS - GT- Indonesia – Malaysia - Singapore Growth Triangle
IMT - GT- Indonesia – Malaysia – Thailand Growth Triangle
JRY – Jawahar Rozgar Yogna

LAS – League of Arab States
MERSOCUR – Mercado Comu’n Del Sur (Southern Common Market)
MIEC – Mekong – India Economic Corridor

MRA – Maritime Regional Agreement
NAFTA - North American Free Trade Agreement
NIE – New Industrialised Economy
NHAI – National Highway Authority of India
OAS – Organisation of American States
OAU- Organisation of African Unity
OECD – Organisation for Economic Cooperation and Development
PMGSY – Pradhan Mantri Gram Sadak Yogna
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PPP – Private Public Partnership

PTA – Preferential Trade Agreement
PWD – Public Welfare Department
RADMS – Road Accident Data Management System
ROB – Road Over Bridges
SAARC – South Asian Association on Regional Cooperation
SADC - Southern African Development Community
SAFTA – South Asian Free Trade Area
SEATO – Southeast Asian Treaty Organisation

SEZ – Special Economic Zone
TNRSP – Tamil Nadu Road Sector Project
ULB – Urban Local Bodies
UNASUR – Union of South American Nations
UNCATD – United Nations Conference on Trade and Development
UNESCO – United Nations Education Scientific and Cultural Organisation

WTO – World Trade Organisation
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LIST OF TABLES
Table - 2.1 : India’s Export to ASEAN Countries from 2001 to 2006

Table - 2.1.1 : India’s Export to ASEAN Countries from 2007 to 2012
Table - 2.1.2 : India’s Export to ASEAN Countries from 2013 to 2016
Table - 2.1.3 : Comparison of Total Exports of India with ASEAN and

World from 2001 to 2006
Table - 2.2 : India’s Export to ASEAN Region from 1996 - 1997 to 2016
- 2017
Table - 2.3 : India’s Export to ASEAN: Item - wise
Table - 2.4 : India’s Import from ASEAN Countries from 2001 to 2006
Table - 2.4.1 : India’s Import from ASEAN Countries from 2007 to 2011
Table - 2.4.2 : India’s Import from ASEAN Countries from 2012 to 2016
Table - 2.5 : Comparison of Total Imports of India with ASEAN and

World from 2001- 2005
Table - 2 .5.1 : Comparison of Total Imports of India with ASEAN and
Table - 2.5.2 : Comparison of Total Imports of India with ASEAN and
Table - 2.6 : India’s Import from ASEAN Region – 1996 – 1997 to 2016
– 2017
Table - 2.7 : Item - wise India’s Import from ASEAN
Table - 2.8 : INDIA - ASEAN Balance of Trade from 2000 – 2017
Table - 2.9 : India’s Merchandise Trade with ASEAN Countries
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Table - 2.10 : Foreign Direct inflow into India

Table - 2.11 : Foreign Direct Investment Inflow from India to ASEAN
2004 – 2014
Table - 2.12 : Share of ASEAN Countries FDI in India from April 2000-
March 2010
Table - 2.12.1 : Share of ASEAN Countries FDI in India from 2010-
December 2016
Table - 2.13 : ASEAN Trading Across Borders
Table - 2.14 : Indian Companies in ASEAN and ASEAN Companies in
India
Table - 2.14.1 : Major Indian Companies in ASEAN
Table - 3.1 : General Profile of the ASEAN Countries and their

Dialogue Partners
Table - 3.2 : Population, Area, and ASEAN Economies
Table - 3.3 : Liner Shipping Connectivity Index (LSCI), from 2004 -

2016
Table - 3.4 : International Logistic Performance Index Scores and
Ranking of ASEAN Member Nations
Table - 3.5 : Share of Indian Flag / Foreign Vessels in the Overseas
Cargo Traffic Handled at Airport
Table -3.6 : Air Traffic handled at All Indian Airports

Table - 3.7 : Performance of Indian Civil Aviation
Table - 3.8 : ASEAN Country-wise International Passengers carried
from India for the year 2014-15 and 2015-16
Table - 3.8.1 : Country-wise International Freight flow in 2014 -15 and
2015-16
Table - 3.8.2 : Country-wise Total International Passengers flow for past
five years (2011-12 to 2015-16)
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Table - 3.8.3 : Country-wise International Freight flow for past five years
(2011-2012 to 2015-16)
Table - 3.9 : Bilateral Air Services Agreement between India and
ASEAN
Table - 3.9.1 : ASEAN – India BASA: Air Links City Pair wise for 2014.
Table – 3.10 : Country – wise scheduled International Passengers carried
from India
Table – 3.10.1 : Country – wise scheduled International Freight carried by
All Airlines from India
Table - 3.10.2 : Passenger Airlines that operates to and from India to
ASEAN Countries for 2014- 2015 and 2015-16
Table - 3.10.3 : Airlines that operate to and from India to ASEAN
Countries for 2014- 2015 and 2015-16
Table - 3.11 : India - Total Road Length and Percentage Share of each
Category of Road (1951 - 2005)
Table -3.11.1 : India - Total Road Length and Percentage Share of each
Category of Road (2006 - 2015)
Table - 3.12 : India - Lane - wise Length of National Highways in India
as on 31st March, 2015 (State/ UT - wise)
Table - 3.13 : The Registered Motor Vehicles in India from 1951 to 2013
Table – 3.14 : State /UT - wise Percentage Share in Total Registered

Motor Vehicles in India during 2001-2011.
Table - 3.15 : Indian Railways Statistical Summary from 1950-51 to 1990
– 91
Table – 3.15.1 : Indian Railways Statistical Summary from 2000 – 2010
Table - 3.15.2 : Indian Railways Statistical Summary from 2010 – 2016
Table - 3.16 : Indian Railways Statistical Summary from 1950 – 2001
(Traffic)
(Traffic)
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(Traffic)
Table - 3.17 : Indian Railways Network Gauge - wise and Zone - wise
Table - 3.18 : Foreign Tourist Arrivals (FTAs) In India 1981 – 2016
Table - 3.19 : Foreign Tourists in India and Foreign Exchange Earnings
for the Years 2000 –2016
Table - 3.20 : Tourist Arrivals to India and the World 1996 - 2015
Table - 3.21 : Foreign Tourists Arrivals (FTAs) in India 1998- 2016
Table - 3.22 : Foreign Tourists Arrivals (FTAs) in India - According to
Mode of Travel 1996- 2015
Table - 3.23 : On Going and Prospective Infrastructure Projects for
ASEAN – India Connectivity: India other than Tamil Nadu
Table - 4.1 : Export and Imports of Tamil Nadu from 1991-2009
Table - 4.2 : Seaport - wise Export from Tamil Nadu
Table - 4.3 : Imports through Sea in Tamil Nadu
Table - 4.4 : Foreign Trade – Tamil Nadu to ASEAN
Table - 4.5 : Tamil Nadu Export through Sea Port to ASEAN
Table - 4.6 : Exports through Tamil Nadu Airports to ASEAN
Table - 4.7 : Imports through Tamil Nadu Sea Ports from ASEAN
Table - 4.8 : Imports through Tamil Nadu Air Ports from ASEAN
Table - 4.9 : Exports and Imports through Sea and Air from Tamil Nadu
Table - 4.10 : Share Export (%) of Certain Commodities through Tamil
Nadu Seaports from 1991-2000
Table - 4.10.1 : Share Export (%) of Certain Commodities through Tamil

Nadu Seaports from 2001-2010
Table - 4.11 : Share Export (%) of Certain Commodities through Tamil
Nadu Airports from 1991-2000
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Table - 4.11.1 : Share Export (%) of Certain Commodities through Tamil

Nadu Airports from 2001-2009
Table - 4.12 : Commodity Composition of Imports of Tamil Nadu
Table - 4.13 : Automobile Firms Base in Tamil Nadu ( In Nos)
Table - 4.14 : List of Operation Special Economic Zones in Tamil Nadu
Table - 4.15 : Investments Plan under Vision 2023
Table - 4.16 : Foreign Direct Investment Inflow to Tamil Nadu
Table - 5.1 : Length of Roads in Tamil Nadu
Table - 5.1.1 : Length of Roads in Tamil Nadu
Table - 5.2 : Length of Roads in Tamil Nadu- Lane - wise
Table - 5.2.1 : Length of Roads in Tamil Nadu- Lane - wise Intermediate
Table - 5.2.2 : Length of Roads in Tamil Nadu- Lane - wise Double lane
Table - 5.2.3 : Length of Roads in Tamil Nadu- Lane - wise Multilane
Table - 5.2.4 : Lane - wise Length of Roads in Tamil Nadu Total
Table - 5.3 : Total Length of different categories of Roads in Tamil

Nadu 1951-2001
Table - 5.4 : Railway Operations in Tamil Nadu 2000 - 2004
Table - 5.4.1 : Railway Operations in Tamil Nadu 2004 - 2008

Table - 5.4.2 : Railway Operations in Tamil Nadu 2008 - 2011
Table - 5.4.3 : Railway Operations in Tamil Nadu 2011 – 2015
Table - 5.5 : Airports in Tamil Nadu
Table - 5.5.1 : City - wise International Aircraft movement in Tamil Nadu
Table - 5.5.2 : City - wise International Passenger movement in Tamil
Nadu
Table - 5.5.3 : City - wise International Air Freight in Tamil Nadu
Table - 5.6 : India –ASEAN Bilateral Air Service Agreement- BASA
City - wise Air links. pertaining to Tamil Nadu in 2014
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Table - 5.7 : City - wise Air passenger flown between India and ASEAN
from Tamil Nadu
Table - 5.8 : City - wise Cargo Carried between India and ASEAN
Table - 5.9 : Indian Airlines – wise Flights between ASEAN and Tamil
Nadu
Table - 5.10 : Airlines – wise Flights between Tamil Nadu and ASEAN
Table - 5.11 : List of Airlines Operating from International Airports in
Tamil Nadu
Table - 5.12 : List of Airlines Operating from Domestic Airports in Tamil
Nadu
Table - 5.13 : Vessels entered in Tamil Nadu from 2000 – 2007
Table- 5.13.1 : Vessels entered in Tamil Nadu from 2008 – 2014

Table - 5.14 : Cargo handled in Tamil Nadu from 2000 – 2007
Table - 5.14.1 : Cargo handled in Tamil Nadu from 2008 - 2014
Table - 5.15 : Trends in Registered Vehicle Population from 2000 – 2014
Table - 5.16 : Vehicle Population and Road Infrastructure - Tamil Nadu
from 1951 to 2014
Table - 5.17 : Foreign Tourists Arrivals to India and Tamil Nadu from
1993 – 2013
Table - 5.18 : Tourist Arrivals in Tamil Nadu from 2000 – 2014
Table - 5.19 : India Connectivity: Tamil Nadu
Table - 5.20 : Prioritized project of Tamil Nadu Infrastructure
Development
Table - 5.21 : Fish Processing and Solid Waste Management Projects
Approved in – Principle
Table - 5.22 : Tamil Nadu Infrastructure Projects in Pipeline
Table - 5.23 : List of Projects Sanctioned under Project Preparation

Table - 5.24 : The Educational and Skill Developing Institute
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LIST OF CHARTS
Chart- 2.1 : India’s Export to ASEAN

Chart - 2.2 : ASEAN Share in India’s Export
Chart- 2.3 : Growth Rate of ASEAN Exports from India
Chart- 2.4 : Total Exports of India

Chart- 2.5 : Growth Rate of India’s Exports
Chart - 2.6 : World Exports
Chart - 2.7 : World Exports Growth Percentage
Chart - 2.8 : Comparison of ASEAN Exports with World Exports
Chart - 2.9 : Comparison of India Export with the World Export
Chart - 2.10 : Comparison of India - ASEAN Exports

Chart - 2.11 : India Imports from ASEAN
Chart - 2.12 : ASEAN Share in India’s Imports in Percentage
Chart - 2.13 : ASEAN Imports Growth Rate

Chart - 2.14 : Total Imports of India
Chart - 2.15 : Growth rate of India’s Imports
Chart - 2.16 : World Imports

Chart - 2.17 : World Growth rate
Chart - 2.18 : Comparison of India ASEAN Imports
Chart - 2.19 : Growth of India - ASEAN Imports
Chart - 2.20 : ASEAN - World Growth Percentage
Chart- 2.21 : India –World Import growth
Chart - 2.22 : Comparison of India World Imports
Chart - 2.23 : Growth of India - ASEAN Imports
Chart - 2.24 : India-ASEAN Export and Imports
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Chart - 2.25 : Balance of Trade between 2001to 2015

Chart - 2.26 : Foreign Direct Investment Flow into India
Chart - 2.27 : Foreign Direct Investment Growth from 2001 to 2015
Chart - 2.28 : Foreign Direct Investment Inflow and Growth Rate from
2001-2015
Chart - 2.29 : Foreign Direct Investment Inflow from India 2004 – 2014
Chart - 2.30 : Trend on India’s Foreign Direct Investment
Chart - 2.31 : Foreign Direct Investment Inflow from ASEAN countries
to India.
Chart - 3.1 : Total Population of India and ASEAN in Millions
Chart - 3.2 : Land Area Occupied by the ASEAN Countries.
Chart - 3.3 : Density per person by the ASEAN Countries.
Chart - 3.4 : Population and Area Sq Km of ASEAN Countries.
Chart - 3.5 : Gross Domestic Product earned by India and ASEAN
Countries.
Chart - 3.6 : Population of India and ASEAN Countries.
Chart - 3.7 : Density of person per Sq Km of India – ASEAN Countries.
Chart - 3.8 : Total Population ASEAN and India
Chart - 3.9 : India – ASEAN Population and Land Area
Chart - 3.10 : Gross Domestic Product India – ASEAN
Chart - 3.11 : ASEAN before moving to Economic Corridor underwent
various stages of development
Chart - 3.12 : Trends in GDP and Air Cargo Growth Rates
Chart - 3.13 : World Tourist Arrival and Indian Tourist Arrivals Growth
Rate
Chart - 3.14 : Foreign Tourists Arrivals (FTAs) in India
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Chart - 3.15 : Foreign Tourists Arrivals (FTAs) in India - According to

Mode of Travel
Chart - 4.1 : Tamil Nadu Gross Domestic Product for 2014-2015
Chart - 4.2 : Tamil Nadu Net State Domestic Product for 2014-15
Chart - 4.3 : Total Heavy vehicles produced by the Companies.
Chart - 4.4 : The Total Production activities in Tamil Nadu
Chart - 4.5 : Foreign Direct Investment Inflow to Tamil Nadu
Chart - 4.8 : Investment Opportunities in the District
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LIST OF MAPS
Map – ASEAN – India Connectivity

Map – Trilateral Highway Project
Map – Kaladan Multi-Modal Transit Transport Facility
Map – Port Connectivity in India

Map – Sea Connectivity in India
Map – Major Airports and Seaports In India
Map – Air Connectivity in India
Map – Air Link between India and Southeast and East Asian Countries
Map – Road Connectivity in India
Map – Rail Connectivity in India

Map – Connectivity during Cholas Period
Map – Road Connectivity in Tamil Nadu
Map – Rail Connectivity in Tami Nadu

Map – Air Connectivity in Tamil Nadu
Map – Institutional Reform, Development and Connectivity
Map – Mekong-India Economic Corridor
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Introduction
“Regionalism is an approach to study the behaviour that emphasizes the geographical

region as the unit of analysis, stressing the relationship between man and his immediate
physical environment. Economic social and cultural organisations are analysed in terms
of their interrelationships and functions within the geographic region.”
-W.P. Scott
The fundamental tendencies reshaping world order are not primarily

associated with cold war, especially the complex dynamics of globalisation.
However, the pre-occupations of the Cold War, its East / West axis of
interpretative logic, made it more difficult to appreciate the impact of
globalisation, including the various phenomena of backlash being generated.
When the Berlin Wall was breached in November 1989 this ultra - stable
geopolitical scaffolding provided by bipolarity, especially with respect to
Europe since World War II, disintegrated before our eyes. The immediate
reaction was to exaggerate the discontinuity, neglecting underlying forces for
change that were having a transforming impact in any event, such as weaponry
of mass destruction, technological innovation, environmental decay, economic
integration, a global communications net, with a cumulative effect of
diminishing the functional competence and normative self-sufficiency of
sovereign states.
The end of the Cold War definitely encourages a greater emphasis on

globalisation, especially its human implications, and on such adverse reactions
and contradictory trends as religious and ethnic extremism. How regionalism of
varying attributes fits within globalisation is a central world order concern for
which evidence and interpretation is necessarily inconclusive. This uncertainty
is magnified by the unevenness of different regional settings and of the varying
degrees to which economic, political, and cultural life has been regionalised.
Almost any generalisation about regionalism seems suspect, and must be
qualified.
From a world order perspective the role of regionalism is to help create a

new equilibrium in politics that balances the protection of the vulnerable and
the interests of humanity as a whole (including future generations) against the
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integrative, technological dynamic associated with globalism. One kind of

balance is being promoted by transnational social forces connected with human
rights and the environment, but regionalism could be another. Both phenomena
are, in part, reactions to the displacement of the state, from without and within,
and the decline of sovereign territorial space as a domain of unconditional
political control. Regionalism, if democratically conditioned, might yet provide,
at least for some parts of the whole, a world order compromise between statism
and globalism that has indispensable benefits for humanity, as well as some
new dangers.
The overlapping of partial or general phenomena has always been the

cause (or effect) of the reality and the manipulation of its ideology. Historians
such as Fernand Braudel and economists like Karl Marx and Karl Polanyi
provide copious study material about these phenomena with their researches
into “market”, “capitalism” and “development.”1 The same situation has taken
place in recent times as well. This is due to the overlaps majorly between partial
and general phenomena of internationalisation and also by reducing this to
partial phenomenon such as universalisation and regionalisation. Globalisation
and Regionalisation are considered equal or, in some cases, regionalisation is
considered a lower stage of development than the Globalisation. Another recent
perspective is the one which places real phenomena such as globalisation,
universalisation and regionalisation on the same level with virtual phenomena
such as the “Global Village” or the “Network Society.”2 This phenomena can
be overcome by careful analysis of the “mesoregion” and “world - economy”,
and from the study of the “authors” and “actors” that characterise the
phenomena of globalisation, universalisation and regional integration. This
analysis will correct the balance between the real and virtual phenomena.
Globalisation represents the new form of capitalist accumulation in the 21st
century, which is qualitatively different from all previous stages. It leaves aside
market economies, dismantles national states and institutions and produces
systems by the rupture of any relation between culture and production systems
and, finally, it de-territorialises the basic existence of the communities.
Universalisation expresses trends and movements of resistance to such new
forms, and regional integration is the political alternative to it. The construction
of process of regional integration rooted in the “meso-region” dimension
appears to be the best alternative to globalisation and the adequate answer to the
new demands on internationalisation in the 21st century.
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Regional development strategies should be based on the sound assessment

of regional business potentials and on opportunities to develop the defined
potentials in order to form competitive advantage over other regions. The
assessment of the business potentials should include, for example, an audit of
the regional industrial and institutional structure, which builds the basis for the
regional innovation system. Each region has its own history, present, potential
and future opportunities, which make it impossible to implement common
strategies in individual regions.
Competitive advantage is based in its resource configurations, but these

resource configurations have to be renewed over time in order to keep them
competitive. The framework of dynamic capabilities focuses on these processes
aiming to continuously renew the resource configurations. The framework has
its origin in the resource-based view of strategic management. According to the
resource-based view, sustainable competitive advantage is mainly caused by
valuable, rare, inimitable and non - substitutable resources. There are five
dynamic capabilities considered to be important in a networked regional
innovation environment: (i) innovative capability, (ii) learning capability, (iii)
networking capability, (iv) leadership capability and (v) forecasting capability.3
Definition of Region
Russett defines a region based on geographic proximity, social and
cultural homogeneity, shared political attitudes and political institutions, and
economic interdependence.4 Deutsch views high levels of interdependence
across multiple dimensions - including economic transactions, communications,
and political values - as determining whether a group of countries composes a
region.5 Thompson argues that regions include states that are geographically
proximate, interact extensively, and have shared perceptions of various
phenomena.6
Although geography lies at the heart of most of these definitions, some

scholars define regions in non-geographic terms. Behavioral definitions
emphasize that political practice and interaction can alter a region’s
composition. As Katzenstein puts it, “regions are politically made.”7 Solingen
subsumes a region’s boundaries to the respective grand strategies of different
domestic political coalitions.8 The scope of a region is thus in the eyes of
members of the dominant coalition. Consequently, it is subject to continuous
redefinition through expansion into other regions or through domestic
3

coalitional shifts in grand strategy. Other non geographic definitions by Risse-

Kappen and Katzenstein that are ideational or social - constructivist stress
shared communal identities of states within the region.9,10 In the light of the
ontological disagreement over what constitutes a region, it is no surprise that
regionalism is also a contested concept. One source of confusion has been the
distinction between regionalism and regionalisation. Various political scientists
have argued that regionalism is a political process marked by cooperation and
policy coordination, whereas regionalisation is an economic process in which
trade and investment within the region grow more rapidly.
“Regions” are generally defined as geographical entities, said to emerge

more or less as integrated units on the basis of shared interests or identities.
“Regionalism” as a political process leads to enhanced integration in a region.
This theory is developed by Bjorn Hettne and others to analyse regionalism in
South Asia. Hettne uses the term “regionness” to indicate the different levels of
integration in a geographical unit. According to him, there are five levels of
regionness which are as follows: 11
1. A region as a geographical unit. That is region is considered to be

spatial in the context of areas which are rooted in territorial space and
are composed of communities controlling certain natural resources.
These are united through a certain set of historical or cultural values.
2. Region as a social system. Regional identities may date back to pre-
modern history. The long history of interdependence may be regarded
as the starting point of regionalism.
3. A region as transnational co-operation. This stage leads to a multitude
of communication processes transcending the national space begin to
emerge. These may be inter-governmental as well as non-state actors.
A regional organisation may be formed giving formal shape to co-
operation. Thus, the process of regionalisation gets more intensified.
4. A region as civil society or community. At this level, the region turns
into an active subject with a distinct identity, legitimacy and decision-
making structure.
5. A region as acting subject or region state. This may give rise to an
entity that would be larger than the states in territorial terms but by no
means having the same degree of homogeneity or sovereignty of a
nation-state emerges.
4

The final stage of regionness is a process of regionalism and a process by

a geographical area is transformed from a passive object to an active object and
begins to articulate the trans - national interest of an emerging region.12 Hettne
emphasises that a region may not necessarily evolve from an earlier to a later
stage. It is possible that the process of regionalisation may fail, leading to
decreasing regionness or even dissolution of a region. Regionalism has
implications for both security and development in a region.13 In the first case, it
aims at transforming “a security complex with conflict generating interstate and
intrastate relations” into “a security community with co-operative external
relations and domestic peace.” In the second case, it refers to “concerted efforts
from a group of countries within a geographical region to increase the
complementarily and capacity of the total regional economy as well as finding
the right balance between functions and territory.”
Based on the five levels of regionness and the success of security and
development regionalism, the different regions can be classified into three
categories, namely, core regions, intermediate regions and peripheral regions.14
Most core regions have some or most of the following features: They are all
politically strong, more organised at the supra-state level, economically
dynamic and growing in a sustained manner. Intermediate regions are closely
linked with some or the other core region. They tend to imitate the political and
economic systems of this core region and at some future stage might be
absorbed into the core region. Peripheral regions are politically turbulent or
economically stagnant or both. They face wars, domestic crises as well as
underdevelopment.
“Region” is the geographer’s term for an “environmental type” in which

“the geographic elements are combined in certain definite and constant
relations.” From the concept of the natural region - physiographic, geological,
climatic, biotic, etc., the human geographer, correlating social with organic and
inorganic factors, has developed the concept of the cultural landscape and the
human use region.15 From human geography, in turn, the sociologist and the
ethnologist have derived the concepts of the sociological region and the culture
area. In the natural, social, and engineering sciences, “regionalism” as a
discipline has not only opened up new research leads but supplied the technique
of regional planning.
5

Definition of Regionalism
Regionalism has frequently been taken to be synonymous with economic
regionalism.16 Much of the early discussion on regionalism, appears to have
been on the belief that the economic dimension of regionalism is pre-eminent.
This importance of the economic dimension was taken to be non-controversial
and was in turn linked to a view that regionalism was only an economic
dimension. However, now it is clear because there is a wide variety of views
and ideas on regionalism, the concept cannot be simply assumed in economic
terms. The inter-governmental political collaboration’s principal objective is to
mainly foster economic cooperation among the states.17 Regions are a basis for
cooperation among states only to the extent that geography coincides with
culture.18 Western Europe represents regionalism in its truest form. 19
The Concept of Regionalism

The term regionalism has been revisited by the Japanese differently but
again in a very important connotation.20 At the base, Regionalism may be
bilateral or multilateral among organisations and movements, The thrust
globally forges a link with civil societies in other regions as well.21
Regionalism accelerates mutual gains through sustained cooperation, formal or
informal, among governments, non-government organisations or the private
sector in three or more contiguous countries.22 Regionalism reflects the political
structures and the strategies of governments, business corporations and a
variety of non-governmental organisations and social movements.23 It is
important to break up the notion of regionalism into different categories rather
than to work with a single overarching concept of regionalism.24 Regionalism
is seen as being necessarily multidimensional and not one-dimensional.25
The concept of regionalism thus can be visualised as being both formal

and informal. The informal sense of regionalism is generally equated with a
feeling of a community in the socio - cultural context. Thus regionalism also
connects idealist views of the community and can even become the process
through which regional policies are designed to create regional benefits and that
members receive an equitable share of those benefits.
Thus there exist a variety of types of constructed regionalisms economic,

security and environmental. In a deterministic sense, geographical contiguity or
propinquity has generally implied a degree of interest congruence between
6

States. From this point of view, we can distinguish between three essential types
of regionalism: first, bilateral regionalism, in which regional arrangements
involve two contiguous States for example, the Closer Economic Relations
(CER) agreement between Australia and New Zealand; second, trilateral
regionalism, in which the regional grouping comprises three contiguous states
for example, the numerous cases of ‘growth triangles’ designed principally for
cooperative economic development at state peripheries; and third, multilateral
regionalism, or regional arrangements involving several contiguous states
and/or states adjacent to a region of common concern, such as the Antarctic or
the Indian Ocean.26
Regionalism is about regional cooperation. It usually appears under certain

economic conditions as regional economic interdependence and it aims to
improve economic efficiency and thus to reinforce market-driven
regionalisation. During the past few decades, there has been a tremendous surge
in regionalism throughout the international system. This growth has been
stimulated in large measure by the proliferation of regional institutions, Regions
are frequently defined as groups of countries located in the same geographic
space; but where one region ends and the next begins is sometimes unclear.
Behavioral definition emphasises that political practice and interaction can alter
a region’s composition. There has always been confusion between region and
regionalism. Various political scientists have argued that regionalism is a
political process marked by cooperation and policy coordination, whereas
regionalisation is an economic process in which trade and investment within the
region grow more rapidly than the region’s trade and investment with the rest of
the world.27
Marshall E. Dimock considers regionalism “as a clustering of

environmental, economic, social and governmental factors to such an extent that
a distinct consciousness of separate identity within the whole, a need for
autonomous planning, a manifestation of cultural peculiarities and a desire for
administrative freedom, are theoretically recognised and actually put into effect.
Regionalism is something which remains to be realised and further developed,
as well as a phenomenon which has already appeared and taken form. In one
sense, and perhaps the best one, regionalism is a way of life; it is a self -
conscious process.” 28
7

The concept of regionalism is as diverse as its object of study. There is no

commonly accepted definition of what a region is. 29 Most would agree that a
region implies some “geographical proximity and contiguity,” 30 and mutual
interdependence. 31 Some would add a certain degree of cultural homogeneity,32
sense of community,33 or “regioness.” 34 Regionalism, then, refers to processes
and structures of region-building in terms of closer economic, political, security
and socio-cultural linkages between states and societies that geographically
proximate. In political science, regionalism is often used synonymous with
regional cooperation and regional integration, which could be seen as the
opposite ends of a continuum along which regionalism may vary.
Definition of Regionalisation
Regionalisation is “the growth of societal integration within a region and
the often undirected processes of social and economic interaction.” 35 Thus
involves creation of institution with an intention of inter-state cooperation.
Regionalism concerns idea, identities and ideologies are related to a regional
project. Research on regionalism has focused on Preferential Trading
Arrangements (PTAs), institutions that provide each member state with
preferential access to the other participants’ markets.
Regionalisation is a bottom-up, societal driven process, whereas

regionalism “involves primarily the process of institution creation, and is the
intentional product of inter-state cooperation.” According to Hurrell,
regionalisation is a feature of regionalism this is akin, he argues, to informal
integration or “soft regionalism,” which involves increasing population flows,
multiple channels, and complex social networks spreading ideas and attitudes.
Marchand et al., emphasises the globalising, restructuring context of
regionalisation. Regionalisation reflects state and non state forces reacting in
opposition to globalisation, whereas regionalism concerns ideas, identities, and
ideologies related to a regional project.” 36
Munakata agrees that regionalism involves institutions established by

governments to promote regional economic integration but emphasises the
varying degrees of commitment by members. Free Trade Areas (FTAs) are
considered a solid form of regionalism, whereas regional consultative bodies
that lack legally binding agreements - even if they promote economic
integration - are a looser form. A wide variety of researchers consider
regionalisation to be a process driven by economic or social forces and
8

regionalism to be a political process. Yet a multiplicity of meanings for each of

these two terms remains. The boundaries between regionalism and
regionalisation remain porous. On the one (FTA: Free Trade Area PTA:
Preferential Trading Arrangement) hand, regionalisation driven by private
actors - economic and otherwise - is often reinforced by states. On the other
hand, bottom-up efforts (domestic and transnational) may lead to regionalism as
the intended or unintended product of pressures on States. Identifying different
sequences of regionalism and regionalisation - and their mutual effects - may be
a more productive endeavor but it can only be advanced through improvements
in the conceptualisation and measurement of “region,” “regionalism,” and
regionalisation.”37
Classification of Regionalism
Regionalism can be classified into four waves. The first occurred during
the second half of the nineteenth century and was largely a European
phenomenon. This wave was associated with the emergence of a liberal
international trading system, since PTAs were networked via most-favoured -
nation clauses. A second wave began in the aftermath of World War - I. These
arrangements were more economically discriminatory than those formed during
the earlier wave. Many observers argue that the PTAs established during the
inter - war era gave rise to “beggar – thy - neighbour” trade policies, a sharp
decline in world trade, and heightened political conflict. Since World War II,
two additional waves of PTAs have occurred. They have proven more difficult
to characterise as either liberalizing or discriminatory than the first two. One
took place in the 1960s and the early 1970s. The second began during the
1990s. Over the past two decades, PTAs have become so pervasive that more
than half of all international commerce has come to be conducted within these
arrangements, and almost every country belongs to at least one. These
developments have spurred substantial scholarly interest in both the causes and
effects of economic regionalism.38
Viner drew the distinction between “trade - creating” and “trade -

diverting” customs unions. Trade - creating unions enhance welfare.
Liberalisation among member - states shifts imports from less efficient
producers outside the arrangement to more efficient producers within it. Trade-
diverting unions undermine welfare, as the preferences afforded producers
9

inside the arrangement shift imports from more efficient producers outside the
arrangement to less efficient producers inside it.39
Regionalism is not a new idea. Our existing states in many instances are
combinations of formerly separate communities. The United States is a striking
example of the success of federalism, which is the most advanced type of
regionalism. The history of the evolution of states probably would show that
combinations came about for a variety of reasons. But it may be ventured that in
most cases a major factor was the compelling military pressure of a common
enemy or of a powerful state within the region itself. Rational appreciation of
the benefits of union probably has not played a great part in the process. Yet in
our present-day thinking about regionalism, as exemplified by inter -
Americanism, we proceed upon the assumption that governments are rational
and we seek for theoretical arguments and historical evidence that will be
persuasive toward, or away from, the grouping of States. The attention paid to
regionalism in the Charter of San Francisco adds point to theoretical discussion.
This is true, also, of the emergence of super - powers and the corresponding
decline of statism per se. A new imperialism is contending with
internationalism. One cannot foresee the outcome of the struggle, but one may
examine evidences of this transition.
The case for regionalism may be considered in the three arguments usually
made for it: (1) that neighbour peoples understand each other better than do
peoples who live remote from one another, (2) that adjacent peoples have
common interests not shared with others that many of their problems are of only
regional importance and can therefore be better dealt with regionally, and (3)
that regional political organisation can be made to work, whereas world
organisation is bound to be too big and clumsy for effective operation. 40
Regionalism and World Order

Early post-war regionalisms were clustered around three main types: those
focusing on security regionalism (like NATO, SEATO and CENTO), those
concentrated on economics (EC, NAFTA, PAFTA) and more multipurpose
organisations (OAS, OAU or LAS). The first two types, despite appearances,
were not unconnected, economic regionalism – like that of the EC – had evident
security logic. Security regionalisms also reflected economic and other forms of
interdependence. The record of early regionalism, outside the European
experiments and the quasi-regionalism of NATO were not judged to be
10

particularly successful. This was true if measured through economic criteria or

security cooperation – indeed both CENTO and SEATO (associated with
external powers but without internal legitimacy) failed to survive. In a Cold
War environment, reflected in the composition of the Security Council, the
envisaged relationship between the UN and regional organisations did not
materialise. Nor did a new legal basis for regionalism emerge. However, in a
wider sense, the concept and practice of regionalism were more firmly
established. With the evident constraints on the United Nations system, peace,
security and economic development were delivered regionally by the
institutions on both sides of the East-West divide. And different regional actors,
despite their relative weakness and dependence on the superpowers, were
slowly empowered. The European Community is the most obvious example, but
it is not alone. These, above all, were learning years for regional institutions,
with lessons in economic integration, institutional development, power
balancing, non-alignment and the development of security communities. Not
only had a raft of new regional institutions emerged; they also learned to adapt,
survive and develop in a changing regional and global environment and this was
important in terms of facing future challenges. 41
The Americas, as already noted, had already developed their own unique
perspective of regionalism with a distinctive ‘regional idea’ based on anti-
colonialism and independent statehood. Indeed South American states sought to
embed their ideas of sovereignty, independence and equality into international
law particularly in respect of non-intervention. The merging of different
regional ideas around the concept of Pan-Americanism in the late 19th century
was an important development marking US ascendency, but it remained
incomplete with different American states since 1945 advocating alternative
routes to regionalism, of which the Southern Cone Common Market
(MERCOSUR) and most recently the Union of South American Nations
(UNASUR) and the Bolivarian Alternative for the Americas (ALBA) are
examples. In these cases and in those of Asia and Africa where the influence of
pan - Africanism on ideas about the region and statehood were significant, it is
not difficult to see how old and new regional concepts are merged in current
institutional frameworks. Hence we can see how the ‘pan’ idea provides
legitimacy in a variety of institutional settings. 42
11

Regionalism as an institutional form of international cooperation is often

identified with the number of security agencies that have developed since I945
such as NATO, SEATO, and the Warsaw Pact. But there are numerous
examples of regional economic and social organisations, especially in Western
Europe. The European Economic Community, European Coal and Steel
Community and the Organization for Economic Cooperation and Development
are important regional agencies. In the Latin American area a new Inter -
American Development Bank has recently been formed as well as a Free Trade
Association between nine of the republics. In South Asia the Colombo Plan
organisation, comprising both economically advanced and under - developed
States, serves to channel important economic aid and technical assistance into
the area. It seems likely that as the newly independent States of Africa gain
political maturity, regional organizations to promote the economic and social
well - being of that continent may be developed. 43
To the extent that regional cooperation provides for an increase in stability

within regions by removing historical rivalries, settling intra - regional disputes,
and promoting economic and social cooperation, it serves as a catalyst for
regional peace and order. But in itself regionalism as an approach to world
order is incomplete. Unless regional units are subordinated to a universal
agency, regional self - sufficiency can only be damaging to inter-regional
relations.44
According to Samir Amin, the historical development of capitalism has

been to gradually move from the local level to the global and at each step to
create new polarising tendencies.45 To be able to improve their economic
positions, peripheral countries have had to de-link themselves from the global
system and adopt alternative, countervailing strategies, one of which is
regionalisation.
It was the rejuvenation of European integration, epitomised by the Single

European Act of 1986 that once again served as the initial catalyst. This was
accompanied by a number of major changes associated with the transformation
of world politics, including (1) the end of superpower conflict, which left more
space for local and regional forces to exert themselves in world politics and
catalysed a shift from bipolarity toward multipolarity, tripolarity, or even uni -
multipolarity; (2) the erosion of the West phalian state system, accompanied by
relentless globalisation dynamics; (3) recurring fears over the stability of the
12

GATT - based global trade regime associated with the Uruguay Round, which
gave rise to the establishment of the Asia-Pacific Economic Cooperation
(APEC) forum in 1989 and the North American Free Trade Agreement
(NAFTA) coming into effect in 1994; (4) the putative decline of U.S. hegemony
in the 1980s, coupled with a more permissive attitude in Washington toward
various economic regional arrangements; and (5) changed attitudes and policies
toward neoliberal economic development and the associated adoption of export
- oriented developmental strategies in the developing and post communist
countries. 46
Regions and their accompanying institutions accordingly grew in

importance: there were a number of new organizations, including the Asia
Pacific Economic Conference (APEC), the ASEAN Regional Forum (ARF), the
Arab Mahgreb Union (AMU), and the Commonwealth of Independent States
(CIS), while older organizations expanded their memberships as well as taking
on different tasks and activities. Yet initially, as after the two World Wars, there
was also a revival of hopes for universalism expressed in the reinvigoration of
the United Nations system, which many considered – and some early evidence
supported this - had the chance to operate as its founders and Charter intended.
There were great expectations of a new era for the UN, supported by a string of
early post-Cold War successes, which peaked around the time of the Gulf War
of 1991. President George Bush Sr saw UN action at this time as being at the
centre of his hopes for a ‘New World Order.’47
Concept of Regionalisation
The two concepts of Regionalism and Regionalisation are distinct.
Regionalism is a political commitment to organize the world into regions. This
is narrower concept and is more specific to regional arena. Andrew Hurrell lets
the concept of regionalism contain five varieties: regionalisation (informal
integration), identity, inter-state cooperation, state-led integration and
cohesion.48 Helge Hveem also makes a firm distinction between regionalism
and regionalisation, but talks about ‘an identifiable group of actors’ trying to
realise the project.49 They go on in their pioneering book to say that
‘regionalism is seen as something that is being constructed, and constantly
reconstructed, by collective human action,’50 which sounds like a more
comprehensive view as far as agency is concerned.51 Other authors find it
difficult to confine the regionalism project to states. According to Anthony
13

Payne and Andrew Gamble, ‘regionalism is a state-led or states-led project

designed to reorganise a particular regional space along defined economic and
political lines.’52
The New Regionalism

In the 1980s, announcement by the United States and Canada for
negotiations for a free-trade area, and by the EU of an attempt to complete its
internal market, ignited a conflagration of regional integration.53 Well over a
hundred regional arrangements, involving most nations, now exist. Deja vu: the
1950s and 1960s had likewise witnessed many ‘old regionalism’ initiatives.
Except for Western Europe, these in the end amounted to little, however, and
efforts for preferential trade became quiescent, until the dramatic advent of the
‘new regionalism.’54
At the end of the 1980s there appeared to be a significant threat to this in

the form of competition from (1) China, (2) the former Soviet bloc following
the dramatic events of 1989 - 91, (3) the potential investment-diverting effects
of greater European integration in 1992, and (4) the North American Free Trade
area, particularly the threat of investment diversion to Mexico. The ASEAN
members, and their AFTA initiative, have played an important role in this
process and help us to better understand the contours of the “New
Regionalism.” 55
The emergence of the New Regionalism has received much attention, and
several differences between previous regionalisms and the “New Regionalism”
have been advanced as significant. One of the most predominant themes is the
observation (or hope) that the latest wave of regionalism is / will be an open
regionalism. Although this term is somewhat nebulous, to the extent that it is
intended to capture the fact that the “New Regionalism” is premised on
countries’ continuing participation in the international trading system, it is a
useful one.56 As previously noted, this provides an interesting contrast to the
rationale advanced by developing countries for the formation of preferential
regional trading arrangements in the 1960s and 1970s during the last wave of
regionalism. Then, the primary purpose of such arrangements was to enable
developing countries to gain a measure of independence from the global
economy and to reduce North-South economic linkages. By 1991 the purpose of
forming a regional trading bloc was no longer premised on the need to be more
independent of the global economy but rather was seen as a measure to ensure
14

continued participation in it. The fear of developing countries was no longer

one of dependence on the global economy but one of being excluded from it.
AFTA therefore confirms this characteristic of the “New Regionalism.”

However, important as this characteristic is, there are two further characteristics
of the “New Regionalism.” These two characteristics are the emergence of
North - South regionalism and multiple regionalism. 57
The “New Regionalism” of the 1980s and 1990s is not simply an open
regionalism, in the above sense, but is also characterised by North - South
regionalism and by multiple (sometimes overlapping) regionalism. These
characteristics are both due, to the current phase of global capitalism which is
marked by a dramatic increase in the size of capital flows and an explosion in
the volumes destined for developing countries. ASEAN countries have been
important participants in this “New Regionalism.”58
In the 21st century, if not before, regionalism was well established in the
vocabulary of International Relations scholars and practitioners such that it
would be hard to imagine a world without it. Moreover, regionalism has
become an integral part of the multilateral architecture, a position set out in the
UN Charter and more recently emphasised in the European Union’s Security
Strategy, adopted in 2003:
“In a world of global threats, global markets and global media, our
security and prosperity increasingly depend on an effective multilateral system.
The development of a stronger international society, well - functioning
international institutions and a rule-based international order is our objective.”59
Major theorists in the field from around the world – Barry Buzan, Morten
Bøås, Richard Falk, Andrew Gamble, Björn Hettne, Helge Hveem, Bob Jessop,
Marianne Marchand, Percy Mistry, Iver Neumann, Anthony Payne, Timothy
Shaw and Diana Tussie have developed their own distinctive theoretical
perspectives, this conceptualized a new regionalism and world order approach
along with regional governance, liberal institutionalism and neoclassical
development regionalism, to regional security complex theory and the region-
building approach. All these concepts have been associated over the years in a
variety of disciplines.
15

Characteristics of the New Regionalism

The following are the major characteristics of regionalism. These six
features are not universal but still they do apply in most important regional
arrangements.60
1. It involves one or more small countries linking up with a large country.

2. The small countries have made, or are making significant unilateral
reforms.
3. Major free trade between members is not featured: the degree of
liberalisation is typically modest.
4. The liberalisation achieved is primarily by the small countries, not by
the large country.
5. Regional arrangements do not reduce or eliminate trade barriers but
just adjust diverse assortments and other economic policies.
6. The participants and regional arrangements are made by neighbouring
countries.
The recent “New Regionalism” movement has suggested that voluntary
local measures and inter local cooperation can be effective substitutes for
centralized control. New Regionalism asserts that regional “governance,” which
involves voluntary horizontal cooperation, is superior to regional “government,”
which “entail[s] formal institutions” that regulate vertically. According to New
Regionalist writers, the economic fate of cities and suburbs is so interdependent
that suburbs will voluntarily aid ailing central cities.
The spread of regionalism since the end of the Cold War has been
represented by an increase in regionalization of world trade, centering
especially on the three major trading blocs: the EU, NAFTA and EA. The
current round of regionalism differs significantly from previous rounds. What
the characteristics of the “New Regionalism” might be, and what the
implications of this are likely to be for the future evolution of AFTA and its
relationship to other regional economic arrangement is yet to be seen.
16

The past twenty five years have witnessed renewed interest in regions and
regionalism. The end of the Cold War brought significant retrenchment of great
power involvement from much of the developing world. After centuries of
intrusion and meddling during colonialism and the Cold War, global regions are
enjoying greater autonomy. New centripetal forces - unipolarity and
globalisation contest regional autonomy, but their frustration with regionalism
is unclear. Globalisation is encouraging a regional pushback. Nor has the
establishment of unipolarity automatically constricted new space; primacy
permits disinterest. In this environment, regions enjoy expanded, if still
disputed, room and international relational theory has responded with a wave of
“new regionalist” thinking. It builds on the previous flourish of regionalist
theory that arose in the late 1960s and early 1970s. But the new regionalism
more successfully builds regional theory into international relations. 61
The ‘new’ regionalism differs from the ‘old’ regionalism in the following
respects: 62
Old Regionalism New Regionalism

Bi Polar Cold Ward Context Multipolar World Order
Created from Outside “From above Created within and “From Below”
Specific to Objectives More comprehensive and multi
dimensional process
The new regionalism thus implies a stronger emphasis on the political
dimensions. Regional organisations which emerged after the Second World
War, whether economic or more security oriented, were usually organised from
above and from outside the region. The new regionalism is emerging in a post
Cold War context, in a situation where ‘national’ economies are outgrowing
their national politics. It is, furthermore, a worldwide phenomenon, although,
just like in the first wave, it started from Europe.
Regionalism in East Asia

Regionalism in Asia has developed along its own specific trajectory. The
so-called “ASEAN way” has for long been characterised by a focus on
economic and financial issues, informal and flexible institutional arrangements
and the absence of any political ambitions – such as the EU’s “ever deeper
union.” 63 This pragmatic and informal approach has been market-driven and
intergovernmental. The development of regional production networks and a
17

regional division of labour have been instrumental for the expansion of intra -
regional trade. At the same time, the export-orientation of Asian economies has
meant that regional integration has gone hand-in-hand with greater global ties
favoring the development of an “open regionalism.” 64
The Asian financial crisis of 1997 - 98 has been the catalyst for a new
stage in East Asian regionalism. Wide - spread disappointment with the IMF’s
response, as well as the indefinite stalling of the WTO’s Doha Round of trade
liberalisation has shifted the focus towards greater regional cooperation on
economic and financial issues. This favoured the development of several new
institutional structures, such as the Asia Plus Three Summit (APT), as well as
the Chiang Mai Initiative and the Asian Bond Markets Initiative. 65 However,
the crisis did not lead to the development of stronger regional institutions or
binding legal arrangements as can be found within the EU. Rather it favoured
the establishment of the various overlapping and informal regional
arrangements that have become characteristic of Asian regionalism.
Regional organisations are treaty and charter-based giving them formal

status in international law. This status is enhanced - critically - through the
recognition and status accorded to regional organisations by the United Nations
and other multilateral organisations like the World Trade Organisation, and it
will be a particular concern of this paper to track the evolution and complex
features of this relationship. However, regional organisations also derive
legitimacy through the articulation and implementation of distinctive regional
norms and practices. The Arab League, for example, derives legitimacy through
its very Arabness, drawing on a rich common culture and history; the states of
Southeast Asia are known for their articulation of what has been called the
ASEAN way, a consensus-based approached based upon strict observance of
sovereignty. Today the ASEAN Way has become the ‘Asian Way’ extending
the idea to a broader and still developing concept of East Asian regionalism.66
China’s emergence as a major power and its economic and political

centrality to the region is having a major impact on re - shaping regionalism
across Asia. So far, China has shown considerable willingness to embed its
“peaceful rise” within regional structures. These structures have offered several
advantages to China.67 Regional cooperation has allowed China to extend its
economic and political influence in a non confrontational way. It has also
served as a way of placating Japanese fears and other regional rivalries. Finally,
18

East Asian regional cooperation has been a useful tool for China to limit the
influence of the United States in Asian affairs and check the development of
initiatives such as the Asia - Pacific Economic Cooperation (APEC). While
Asian regionalism has shown to be one of the most dynamic in recent years,
some issues remain. The strong focus on inter - governmental cooperation and
on the principle of non-interference has largely blunted regional efforts to deal
with issues such as human rights, the environment, or labour standards. Security
cooperation and dialogue remain largely informal and adhoc arrangements, such
as the Six - Party Talks on North Korea. Neither do East Asian countries share a
single market in goods and services. Finally, East Asia is still home to several
frozen conflicts and regional rivalries. Tensions persist between North and
South Korea, between China and India and between China and Taiwan as well
as between several countries over the South China Sea. These tensions could
yet prove to be a stumbling block in the way of further regional cooperation.
Despite all of this, the outlook remains positive. The rise of China and
growing economic inter-linkage is likely to lead to further regional integration.
Similarly, the recent global financial crisis may yet serve as another catalyst for
a deepening of Asian regionalism. A key role in this will be played by Japan,
which has historically favoured more inclusive forms of regional cooperation in
order to balance and dilute the weight of China.68 The annual East Asia Summit
(EAS) might yet lead to the development of an East Asian Community with
greater political powers and with the aim of introducing a common currency
unit in the long run - as most recently proposed by Japan in 2009. For the time
being, regionalism in East Asia is likely to take the form of a hub-and-spoke
system, centered on China, which plays a stabilising but informal role in the
region.
Regionalism in Southeast Asia - Before ASEAN

Southeast Asia can be classified basically into mainland in the south and
maritime region. Mostly this pertains geographically to the hinterland of the
Indian Ocean. Both the geographical and cultural region overlap with each
other. Among the Southeast Asian countries, Indonesia was the first country to
become independent after the colonial rule and declared its independence from
the Dutch in 1945. The Malaysian Federation became independent in 1957.
Singapore became an independent state in 1965. For the rest of the South Asian
countries independence came only after the bitter and prolonged struggle from
19

the super power of China. Thailand and Philippines were in the US camp and
Malaysia and Indo - China was under the influence of communism. The
expansion of communist brought the South Asian countries together. Thailand
and Philippines, together with the US, UK, France, Australia, New Zealand and
Pakistan, signed the Manila Pact and formed the collective defence treaty of
Southeast Asia, viz., SEATO (South East Asia Treaty Organisation). SEATO
also covered Malaya, British Borneo and Singapore, until the independence of
these territories and through the British membership of the alliance.69 Having
adopted non-aligned foreign policy, Indonesia chose to remain outside the
Manila Pact.
The Association of Southeast Asian Nations (ASEAN)

The four states of maritime Southeast Asia, along with the only distinctly
anti-Communist state of mainland Southeast Asia, viz. Thailand, signed the
Bangkok Declaration on 8th August 1967 and formed the Association of
Southeast Asian Nations (ASEAN). Since then, the regional organisation has
expanded to its current membership of ten. Brunei Darussalam joined ASEAN
on 7 January 1984, just six days after its independence. The end of the Cold
War, however, led to a major expansion in the late 1990s. Vietnam became a
member of ASEAN on 28 July 1995; Laos and Myanmar on 23 July 1997; and
Cambodia on 30 April 1999.70 The Bangkok Declaration of 1967 adopted
seven aims and purposes for the organisation. These are: a) economic growth,
social progress and cultural development; b) regional peace and stability; c)
economic, social, cultural, technical, scientific and administrative collaboration;
d) mutual assistance in training and research; e) collaboration in agriculture and
industry, trade, transportation and communications and the improvement of
living standards; f) promotion of Southeast Asian studies; and g) co-operation
with regional and international organisations.71
After the 1980s there has been an explosion of various forms of

regionalism and regionalist projects. These projects have been from almost all
over the world and there has been a widening of the European Union (EU)
which is perhaps the most debated and discussed projects in this trend of
regionalism. Several regional projects have been revisited like the Southern
Common Market / Comisión Sectorial para el Mercado Común del Sur
(MERCOSUR), the Association of Southeast Asian Nations (ASEAN), the
North American Free Trade Agreement (NAFTA), the Southern African
20

Development Community (SADC), the Economic Community of West African

States (ECOWAS) and so forth. These projects and their revival show that
regionalism and regionalist projects are gaining world attention.
The construction of a new regionalism in East Asia has intrinsic appeal.

The Geopolitics of Asia - Pacific Regionalism in the 21st Century to regional
people and states was to democratise security and to provide a geopolitical
counterweight to the EU and NAFTA. At the same time, number of
longstanding regional tensions remain which have the potential to forestall such
a process. 72
The economic rise of Asia is unprecedented and this is the region for more
than half of the world’s population and records the highest record in economic
growth rates. Asia will exercise a prominent role in 21st century economy and
also has largely reduced its dependence on the rest of the world. Regionalism
as a concept is relatively new in the Asian countries and most of Asians
economies are linked through trade, financial transactions, direct investment,
technology, labour and tourist flows, and other economic relationships.73
Regional cooperation, effectively structured and implemented, is a powerful
new tool in Asia’s policy arsenal. It can help Asia address regional challenges
as well as provide stronger foundations for its global role. An integrated Asia
can link the competitive strengths of its diverse economies in order to boost
their productivity and sustain the region’s exceptional growth. 74
Asian countries must try to connect the region’s capital markets to

enhance financial stability, reduce the cost of capital, and improve opportunities
for sharing risks; cooperate in setting exchange rate and macroeconomic
policies in order to minimise the effects of global and regional shocks and to
facilitate the resolution of global imbalances; pool the region’s foreign
exchange reserves to make more resources available for investment and
development; exercise leadership in global decision - making to sustain the
open global trade and financial systems that have supported a half century of
unparalleled economic development; build connected infrastructure and
collaborate on inclusive development to reduce inequalities within and across
economies and thus to strengthen support for pro-growth policies; and create
regional mechanisms to manage cross-border health, safety, and environmental
issues better. Thus even though the opportunities are clear, the challenge of
cooperation exists and it will require trust, innovation, compromise and time.
21

The two scenarios of the character and consequences of future regional

cooperation have been the subject of heated debate within industrial countries,
especially with regard to the future of the international trading system. Take, for
example, the following extract from a summary report of an OECD
conference.75
In the conference, some observers have expressed concerns over increased

regionalization in the world. The preferential trade seems to be the major source
of trade diversion according to this conference. The conference summary also
had a view that regionalisation can have spill effects since it induces outsiders
and may also loose markets and strengthen bargaining power. Thus according to
the discussion, it states that competitive regionalisation can contribute to global
liberalisation and make turn the world into hostile economic blocks. There were
also others who disagree to this, and state that regionalism may be attractive and
they make negotiations possible and that economic liberalisation may become
manageable and not hostile.
In principle, bilateral or regional and global multilateral cooperation

should not necessarily be considered as contradictory forms of relations. They
can co - exist, and may even be mutually supportive in open democratic
systems. In closed or constrained systems of cooperation, however, they may be
conflictive.
Part of the so - called new regionalism theory involves the study of sub -
regional zones of economic or development cooperation between contiguous
border areas of different countries. Sometimes referred to as “growth triangles”
or “growth polygons,” these zones have become a defining feature of Southeast
Asia's regionalism. Four main sub - regional cooperation arrangements have
been initiated, namely: the Indonesia - Malaysia - Singapore Growth Triangle
(IMS-GT); the Greater Mekong Sub region (GMS); the Indonesia - Malaysia -
Thailand Growth Triangle (IMT-GT); and the Brunei - Indonesia - Malaysia -
Philippines East ASEAN Growth Area (BIMP-EAGA).
In India, Regionalism may be viewed both from the negative and positive
side. From the positive side regionalism helps in a quest for self - identity and
self - fulfillment on the part of the domiciles of a region. In negative terms,
22

“regionalism reflects a psyche of relative deprivation on the part of people of an

area not always viable in terms of rational economic analysis.
Review of Literature
Snehalata Panday in her article “ASEAN-India Synergy: Performance and
Perspective” is of the view that India ‘Look East’ policy has resulted in the
Indian economic and strategic growth .76 Suthiphand Chirathivat’s article on
“Thailand’s Greater Mekong Sub Region: Role and Potential Linkages to South
West China and Northeast India” details the challenges and policy
implications of linkages between southeast Asian countries.77 Zorawar Daulet
Singh’s article “Geo-Economics of East Asia” has explained the overarching
geo-economics and geopolitical variables at play in the region that must
conform to India’s posture and policy.78 Amitendu Palit’s paper “India's
Economic Engagement with Southeast Asia: Progress and Challenges”
examines the key aspects of India's economic engagement with Southeast Asia
and the challenges that both India and ASEAN need to overcome in order to
enhance deeper economic engagement.79
Ganganath Jha in his paper “India’s Dialogue Partnership with ASEAN”

analyses India and ASEAN relationship, states the historical and current
cooperation between ASEAN member countries. He also focuses on India-
ASEAN economic relations and summit level partnership.80 Madhavi Bhasin in
her paper “India’s Role in South Asia: Perceived Hegemony or Reluctant
Leadership?” focuses on the regional interactions of India and perceptions of its
neighbours.81P.V. Rao’s edited book India and ASEAN: Partners at Summit is
based on the successful implementation of India’s ‘Look East’ policy and how
it has shaped the country’s relations with ASEAN.82
Atul Sharma in his article “The North-East as Gateway to South-East

Asia: Big Dream and Home Truths” relates to the minimum intervention in
traditional systems and institutions of the hill economy. 83Suparma Karnker, in
her paper titled “India-ASEAN Cooperation in Services-An Overview” has
described new age free trade agreements in the context of the ongoing attempts
at multilateral liberalisation and the proliferation of bilateral regional
comprehensive.84 K.Raja Reddy in his edited book India and ASEAN -
Foreign Policy Dimensions for 21st Century) has mainly focused on India’s
‘Look East’ policy.85 Mukul G. Asher and Rahul Sen, in “India-East Asia
Integration: A Win-Win for Asia” talks about India’s focus on future
23

cooperation in trade, commercial services, investment flows and the

implications of demographic abilities between India and East Asia.86 Zeba
Sheereen in her article “Regionalism and Economic Opportunities for India:
SAARC or ASEAN” gives a brief explanation of the economic opportunities
and possible benefits to India from grouping with SAARC/ASEAN.87
Poonam Mann, in India’s Foreign Policy in the Post Cold War Era has
given a sketch of India’s relations with the USA, and the Commonwealth of
Independent States. She has attempted to analyse issues which create problems
and conflicts between South Asian countries. Two chapters briefly discuss
regional cooperation in Third World countries and India’s relations with South
and South East Asia. 88 Frederic Grare and Amitabh Mattoo in their edited work
India and ASEAN: The Politics of India’s Look East Policy deal with India’s
Look East policy and its engagement with Southeast Asian countries.89
Ramesh Chander Bhatia in his book Indo-South East Asian Economic

Relations discusses the consequences of globalization on Indo-Southeast Asian
nations.90 The edited work by Shri Prakash entitled India and ASEAN-
Economic Partnership in the 1990s and Future Prospects reviews the role of
the Indian government which has to effectively interact with the various
governments of Southeast Asia.91 Kripa Sridharan has done a pioneer work -
The ASEAN Region in India’s Foreign Policy This book primarily explains
India’s general foreign policy and its concerns.92
Ayoob Mohammed in the book India and Southeast Asia: Indian

Perception and Policies analyses, the linkages between Indian interests in
Southeast Asia and other major Indian foreign policy and security concerns
particularly in the large Asia-pacific region. This study primarily focuses on the
strategic and political dimensions of Indian policy towards, and interactions
with, Southeast Asia.93
S.D. Muni in his paper “South-South Cooperation in Southern Asia”

focuses on regional organizations SAARC and ASEAN and their process.94 K.P.
Saksena in his book Cooperation in Development: Problems and Prospects for
India and ASEAN analyses India- ASEAN relations with a view to assess the
problems and prospects for cooperation in development In his book he also
explores India’s trade relations with Indonesia, Malaysia, the Philippines,
Singapore, Thailand and Brunei.95
24

Aim and Objectives

The aim of the study is to understand the India – ASEAN connectivity
towards borderless trade community with special reference to Tamil Nadu, its
implication for India’s trade expansion in the ASEAN region. As influenced by
the aim of the study, the primary objective of this research is to examine and
analyse the trade and connectivity between India and ASEAN and mainly focus
on Tamil Nadu - ASEAN connectivity in term of on borderless trade
connectivity.
In the context, the following objectives of the research study are stated as:
1. The India - ASEAN has been the open highway for trade and
commerce since time immemorial and in this context the study tries to
trace out the India- ASEAN progress and prosperity pertaining to trade
and connectivity
2. To trace out and identify the relationship between India - ASEAN
connectivity and how India is moving forward in Commerce and
Economic Cooperation.
3. To Study about ASEAN - Tamil Nadu Trade integration and
Cooperation, relevant measures and its implications towards borderless
trade Connectivity.
4. To analyse the role and significance of the major connectivity between
ASEAN – Tamil Nadu for its trade and Commerce.
5. To suggest suitable measures to improve the trade relations and
connectivity towards strengthening the India-ASEAN relations.
Methodology
The study has been undertaken by adopting analytical and descriptive
approach. During the course of the research, the data collection method includes
both Primary and Secondary sources pertaining to the study which has been
culled from existing literature. The sources that have been used in the research
are Government (Both Central and State) records/documents, Government
Publications, International Organisation publications, Government websites
such as Ministry of Industry and Commerce, Ministry of Railways, Ministry of
Civil Aviation, Ministry of Tourism, Ministry of Port, Ministry of Transport.
Secondary sources were collected from libraries such as Connemara Public
Library, Madras University Library, Anna Central Library, Madras Institute of
25

Development Studies, CII and the articles that have been published in various
journals, magazines, newspapers, reviews, reports and online material along
with seminar and conference proceedings. This study relied heavily upon
secondary data that have been collected through desk based research. Graphs,
histogram, trend analysis, percentage analysis and Average growth rate is used
for analysis.
Chapterisation
The Research thesis comprises of six chapters. The first chapter frames the
area of interest and outlines the general overview of regionalism in Southeast
Asia, its definition on region, regionalism, regionalisation, its concept, and its
classification. India’s position in Southeast Asia, the world order and new
regionalism in the post Cold War era, its trade and commercial connectivity
with ASEAN countries form the crux of this chapter. The research aim and
objectives are presented and the selected methodology is briefly discussed and
the other chapterisation is also stated.
Chapter Two describes India – ASEAN Trade Relations. It elucidates the

progress and prosperity of such relations and India’s position in Southeast Asia.
It also details India’s position in the world. The chapter thoroughly examines
India’s trade and commerce activity with Southeast Asian Countries, Chapter
Three specifically discusses about India-ASEAN connectivity and with it
explaining the impact on globalisation and reviving the economy. This chapter
also discusses the link of India with ASEAN and how this has enhanced
connectivity which had been the source for inclusive growth, transport and
infrastructure at large.
The Chapter Four focuses on the study of ASEAN - Tamil Nadu Trade
integration and Cooperation. Since Tamil Nadu has a long coastal area, major
trading activity is through Tamil Nadu. Chapter Five focuses on Connectivity,
Integration and cooperation between Tamil Nadu and ASEAN. The chapter
explicates the major projects, the profile of physical connectivity in Tamil
Nadu, it prospective infrastructure projects for ASEAN - India connectivity.
The sixth and final chapter forms the conclusion of the thesis and provides
possible recommendations and suggestions for the policy makers.
26

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32

India ‐ ASEAN Trade Relations:
Progress and Prosperity
Regional integration arrangements are a popular phenomenon of the

present global economic order and this feature is now an acknowledged future
of the international scene. Regionalism has existed for so many years in various
parts of the world, but it grew rapidly over three decades. Presently all countries
are members of at least one Bloc. There are several groupings in Asia that have
regional economic cooperation initiatives such as SAARC (1985), APEC
(1989), SAFTA. Trade is the major priority and important engine for growth,
similar to ASEAN economy India has also attained a place of prominence at
global stage. The two regional markets can be combined to yield a market of
huge potential for growth of investment by both domestic and international
investors. India’s growing profile has attracted the countries of Southeast Asia
to foster closer engagement at regional and multilateral level.1
India ASEAN trade relations have contributed to the maintenance of

peace, stability and prosperity in the region and looks forward to further
invigorate trade and investment relation with India. Shared values, common
destiny reflects the close cultural and civilization links between India and
Southeast Asia which they have been enjoying over two millenia.2 Regional
cooperation has been moving forward in many fronts such as trade in services,
trade in facilitation, investment cooperation, intellectual property rights and
even attempts are made to close the “developmental gaps” through integration.3
Presently India-ASEAN cooperation extends to almost all areas of economics as
well as many social, cultural and security areas. Economic integration has been
supported by trade and investment regimes that remained open despite
challenges to the crisis. There is a consensus that international trade has been a
key factor at all stages of development. Import substitution was embraced by
most economies early in the development process, but the transition to export
orientation was generally propagated when the limits of domestic market
became apparent.4
Taking advantage of international market requires many variables to be in

place, including macroeconomic stability, correct micro economic signals,
necessary Infrastructure and forward looking Government policy. These
conditions cannot be prepared overnight, it often takes a great deal of time, trial
33

and error, participation before orientation can bear the fruit.5 Trade liberalisation
has reduced trade barriers and enhanced the attractiveness of India - ASEAN
foreign investors and its competitiveness in local and third markets. ASEAN
Economic integration has always been outward looking with a policy of “Open
Regionalism.”6
Bases for International Trade and Changing Scenario

Trade, internal and external, is as old as civilization. Trade takes place
because the facilities for the production of various goods are unequally
distributed over the world. These facilities include mineral deposits, soil and
climatic conditions, labour skills etc. Bertil Ohlin has observed, “International
trade is but a special case of inter- local or inter-regional trade.”7 Inter- regional
trade is necessitated because International trade poses certain peculiar problems.
These include: a) exchange rate determination because of different currencies
involved in international transactions, b) balance of payments problem,
c) barriers to international trade in the form of tariffs and quotas.8
Changing Pattern of International Trade

The period of 1950-1980 witnessed a revival of world trade especially
among industrialized countries. Trade integration started during 1970’s when
number of East Asian economies embarked on the path of export - led growth.
In 1980-1990’s large number of developing countries gradually increased their
degree of openness. During this period outward oriented policies were
undertaken as the ground of efficient resource allocation, infusion of modern
technologies, promotion of economies of scale, retention of consumer surplus,
reduction of rent - seeking and unproductive profit seeking activities. 9 During
most of this phase, India could not take the advantage of greater openness in
trade regime. It was only after 1990 that India embarked on a truly liberalised
trade regime. Increasing trade openness by developed countries and later by
developing economies resulted in significant changes in the pattern of world
trade. 10
Present - day developing countries, in most cases, have a colonial past

marked by extensive exploitation, and developed countries view foreign trade
and investment with a certain amount of suspicion as these developing countries
focus their attention on the domestic markets. Many of them adopted economic
planning as a tool of rapid industrialization and agriculture development of their
34

economies in order to reduce their dependence for manufactured goods on the

developed nations. This meant emphasis on import substitution through tariff
protection of domestic industries, direct controls on imports, and investment
and over- valued exchange rates.
The policy maker in several developing countries took a pessimistic view

on using international trade as an engine of growth and adopted instead, inward
looking development strategies which emphasized import substitution rather
than promotion of trade. The situation changed radically when some Asian
countries adopted policies of import liberalisation and export promotion during
the 1960’s. The economic success of many of these countries encouraged other
developing countries to increase their trade openness. The liberalisation of
merchandise trade and other current account transaction by a large cross-section
of countries provided a noticeable thrust to the world trade in 1990. Since then,
trade policy reforms have been introduced to open the Indian economies to the
rest of the world with a view to integrate it with the global market. This was an
appropriate response to the establishment of the World Trade Organisation in
1995. 11
Post Independent Trade Policy

After independence, India adopted an inward - looking development
strategy wherein import substitution constituted a major element of both trade
and industrial policies. The focus in the initial stage was on home - grown
industrialisation; where in production for the domestic market was shielded
behind high tariff walls with effective protection. This strategy of import -
substituting industrialisation created self - fulfilling basis against the export
producing sectors. The Foreign trade of India suffered from strict bureaucratic
and discretionary controls. In 1991, a new era in the foreign trade policy of
India was ushered in. Control and regulations focus shifted to promotion and
development of foreign trade. Between the years 1993-97 the government
announced the export and import policy to set up industrial parks in different
states to further carry forward the previous policy of liberalisation by
deregulating and simplifying procedures and removing quantitative restrictions
between 1997- 2002.12
As a far reaching move, the Government of India announced in 2004, a

new foreign policy replacing nomenclature EXIM policy to Foreign Trade
Policy. Every five years these policies are amended and announced by the
35

Government and supplement policies are amended and publicised every year.
Between the years 2009 - 2014, the world was emerging from the shadow of a
challenging economic period. Economy and market were in turmoil, causing
sharp contraction in international trade, adversely impacting global investment
flows, and rendering over 50 million people jobless. Foreign Trade Policy
2009-2014 focused not only on trade activities. Generating employment
constituted the main agenda of the board of the policy. Foreign trade policy
used mix policy to enhance market access and diversification of export markets.
In 2009-2014 foreign trade policy improved infrastructure related to exports,
reducing transaction cost and provide full refund of all indirect taxes were
initiated.13
ASEAN needs to be more integrated as a grouping, more engaged with

global economy and more proactive and lively to respond to changing
circumstances in a rapidly shifting but increasingly interdependent world. New
issues and challenges are confronting ASEAN, and therefore, pushing ahead
with integration and strengthening ASEAN institution, mechanisms and process
will be crucial for the region to address this development.14
The regional role of ASEAN has been further enhanced by its community
building efforts particularly ASEAN Economic Community. In pursuance of
‘Look East’ policy ‘Act East’ policy endeavours to cultivate wide - ranging
economic and strategic relations in southeast Asia. ASEAN as a Bloc has
become India’s largest trading partner and is expected to strengthen business
and commercial relations between ASEAN and India.15
ASEAN trade in Good Agreement (ATIGA) came in to force in 2010.

This legal enactment was to implement effectively the stipulated tariff reduction
up to 2015, and to promote trade facilitation by providing credit guarantee and
investment. The ASEAN plus three finance minister for development, has
initiated the promotion of deep and liquid local currency and regional bond
markets. However, ASEAN infrastructure fund is also being considered to
finance regional infrastructure - building crucial for the establishment of a well-
connected and integrated single market and production base in ASEAN.16
India displays its economic and technological capacities to compete in the

21st century. It is becoming an important player in shaping the future. India’s
domestic growth is considered to be self - sustainable, spawning several
36

globally competitive firms. The growing involvements of Indian companies

abroad have been the result of growth and liberalisation. This has led India to
consider ‘Look East’ policy with greater strength and vigour. The policy
strengthened relations between India and the ten members of ASEAN countries
in Southeast Asia. ASEAN recognised the growing power of India and its active
engagements. To balance the relationship with all the economies particularly
China, India pursued FDI in the labour intensive manufacturing and exporting
strategy.18
India’s Bilateral and Regional Trade Agreements are as follows.17
Agreements Year Country

India – Thailand – Free Trade 2003 Thailand
Agreement Early Harvest Scheme
BIMSTEC 2004 Thailand and Myanmar are
also members
India – Thailand – Free Trade 2004 Thailand
Agreement
India Singapore Comprehensive 2005 Singapore
Economic Cooperation Renewed
2009, 2014
India – Indonesia Comprehensive 2005 Indonesia
Economic Cooperation
India –Malaysia Comprehensive 2005 Malaysia
Economic Cooperation
Asia Pacific – Bangkok Agreement 1975 Membership of APTA
(APTA) Revised consists of Bangladesh,
2006 China, India, Lao PDR,
Republic of Korea and Sri
Lanka.
India – ASEAN Regional Trade and 2007 ASEAN
Investment Agreement Renewed
2011
Source: Compiled from focusweb.org/node/1299 and commerce.gov.in/writereddata/
uploadedfile/MOC_635986646213330230_annual repport_15_16eng.pdf
Today foreign trade policies play a significant part in the Indian economy
reflecting its increasing globalization. Foreign trade policy has been
conventionally formulated and reviewed to provide a framework of rules and
37

procedures for export and imports, and set incentives to promote exports. Two
and half decades ago, India occupied a small place on the global trade canvas.
The Indian economy became more competitive globally and exports began to
grow remarkably. Trade performance of a country is so closely and inextricably
linked with overall economic performance and trade policy has a direct connect
with domestic economic policies. The biggest challenge is to properly anchor
the elements of foreign trade policy in overall economic policy and ensure that
a frame work of rules, procedures and incentives for trade are contextualized
within a composite approach to economic development.19
India participates in manufacturing Global Value Chain where several

countries are combined through integrated production networks to produce final
goods and services. Inadequate infrastructure, sub-optimal connectivity with
global transport network, low transport capabilities and complicated
administrative requirements that cause long delay at ports and customs are some
serious obstacles to participation by Indian producers in Global Value Chain.
India foreign policy faces biggest challenges within the country. Without
addressing the challenges within; India cannot tackle the trading environment’s
undeniable challenges effectively.20 Connectivity plays a crucial role in
building a vibrant internal market and linking it to the global economy, ASEAN
endorsed a Master Plan on connectivity. It focus on among other things are
Transport, information and communication technology (ICT), energy and cross
border linkages and the facilitation of the smooth movement of people, goods
and services.21
ASEAN has become one of India’s largest trading partner in recent years.
India’s trade with ASEAN has increased, and its growth varies across countries
within ASEAN. For instance, most of the India’s exports to ASEAN countries
have been directed to Singapore, Malaysia, Indonesia, Thailand and Vietnam,
respectively.
India – ASEAN Trade Performance

India’s trade with ASEAN has documented development that the world
has witnessed. India’s export to ASEAN has been growing faster than her
imports and this composition shift can be seen from the data given;
38

Table - 2.1: India’s Export to ASEAN Countries from 2001 to 2006

(Value in Millions)
2001 2002 2003 2004 2005 2006

Exports 1,512.77 1,363.41 2,155.00 2,109.37 2,275.46 19,010.55
Brunei % Share 0.0074 0.0065 0.0084 0.0072 0.0061 0.417
% Growth - -9.87 58.06 -2.12 7.87 735.46

Exports 3,589.11 5,385.89 9,600.21 8,546.90 8,148.07 10,710.02
Cambodia % Share 0.0176 0.258 0.0376 0.0291 0.0217 0.0235
% Growth - 50.06 78.25 -10.97 - 4.67 31.44

Exports 182,624.40 254,535.19 399,773.68 517,967.68 598,756.65 611,063.22
Indonesia % Share 0.8971 1.2178 1.5669 1.7656 1.5952 1.3388
% Growth - 39.38 57.06 29.57 15.60 2.06
Exports 2,852.90 1,508.85 763.17 199.04 1,190.39 2,422.73

Laos PDR % Share 0.0140 0.0072 0.0030 0.0007 0.0032 0.0053
% Growth - - 47.11 - 49.42 -73.92 498.07 103.52
Exports 277,830.86 368,989.42 362,661.06 410,238.16 487,084.68 514,398.01

Malaysia % Share 1.3648 1.7653 1.4214 1.3984 1.2977 1.1270
% Growth - 32.81 - 1.72 13.12 18.73 5.61
Exports 24,081.19 29,040.79 36,331.91 41,192.50 50,859.74 49,009.52

Myanmar % Share 0.1183 0.1389 0.1424 0.1404 0.1355 0.1074
% Growth - 20.60 25.11 13.38 23.47 -3.64

Exports 92,561.60 118,174.79 228,425.62 147,747.91 185,219.60 219,005.40
Philippines % Share 0.4547 0.5654 0.8953 0.5036 0.4935 0.4798
% Growth - 27.67 93.29 - 35.32 25.36 18.24
Exports 400,704.03 463,712.59 687,977.67 976,392.90 1,797,534.89 2,401,965.25

Singapore % Share 1.9684 2.2185 2.6965 3.3282 4.7891 5.2626
% Growth - 15.72 48.36 41.92 84.10 33.63
Exports 242,184.17 301,953.99 344,185.69 382,171.66 405,008.07 476,076.01

Thailand % Share 1.1897 1.4446 1.3490 1.3027 1.0790 1.0431
% Growth - 24.68 13.99 11.04 5.98 17.55
Exports 103,202.67 104,051.22 163,281.57 188,601.29 249,800.55 305,786.46

Vietnam % Share 0.5070 0.4978 0.6400 0.6429 0.6655 0.6700
% Growth - .82 56.92 15.51 32.45 22.41

Source: Ministry of commerce and Industry, Department of commerce, Government of India.
www.commerce.nic.in.
39

Table - 2.1.1: India’s Export to ASEAN Countries from 2007 to 2012

(Value In Millions )
2007 2008 2009 2010 2011 2012
Exports 3,759.13 4,206.74 7,994.52 11,605.02 10,525.05 406,235.77
Brunei % Share 0.0066 0.0064 0.0095 0.0137 0.0093 0.2771
% Growth - 80.23 11.91 90.04 45.16 -9.31 3759.70
Exports 23,603.66 21,510.37 21,507.71 21,553.19 30,483.23 47,753.35
Cambodia % Share 0.0413 0.0328 0.0256 0.0255 0.0268 0.0326
% Growth 120.39 -8.87 0.01 0.21 41.43 56.65
Exports 917,696.77 869,277.93 1,157,782.95 1,460,463.91 2,592,440.79 3,210,069.61
Indonesia % Share 1.6050 1.3254 1.3771 1.7273 2.2801 2.1897
% Growth 50.18 -5.28 33.19 26.14 77.51 23.82
Exports 1,076.38 1,542.58 4,445.31 8,120.26 5,943.51 7,320.34
Laos PDR % Share 0.0019 0.0024 0.0053 0.0096 0.0052 0.0050
% Growth -55.57 43.31 188.17 82.67 -26.81 23.17
Exports 590,192.56 1,033,392.32 1,578,036.20 1,350,392.32 1,767,721.05 1,910,321.00
Malaysia % Share 1.0322 1.5761 1.8769 1.5971 1.5548 1.3031
% Growth 14.73 75.15 52.65 -14.43 30.90 8.07
Exports 63,374.59 74,619.38 101,776.52 98,472.88 145,903.12 264,450.60
Myanmar % Share 0.1108 0.0038 0.1211 0.1165 0.1283 0.1804
% Growth 29.31 17.74 36.39 -3.25 48.17 81.25
Exports 263,596.76 249,073.46 337,935.11 354,650.05 400,462.19 476,321.82
% Growth 20.36 -5.51 35.68 4.95 12.92 18.94
Exports 2,746,160.82 2,966,223.24 3,775,688.18 3,594,829.70 4,473,173.31 8,036,299.98
Singapore % Share 4.8028 4.5226 4.4908 4.2516 3.9343 5.4819
% Growth 14.33 8.01 27.29 -4.79 24.43 79.66
Exports 653,562.38 727,877.20 872,399.50 822,762.26 1,034,625.66 1,425,353.49
Thailand % Share 1.1430 1.1098 1.0376 0.9731 0.9100 0.9723
% Growth 37.28 11.37 19.86 -5.69 25.75 37.77
Exports 444,623.84 645,128.09 794.,947.72 867,397.61 1,204,507.36 1,808,498.30
Vietnam % Share 0.7776 0.9836 0.9455 1.0259 1.0594 1.2337
% Growth 45.40 45.10 23.22 9.11 38.86 50.14

Source: Ministry of commerce and Industry, Department of commerce, Government of
India.www.commerce.nic.in
40

Table - 2.1.2: India’s Export to ASEAN Countries from 2013 to 2016

(Value in Millions)
2013 2014 2015 2016

Exports 21,830.06 19,610.08 25.609.08 18,572.88
% Share 0.0134 0.0103 0.0135 0.0108
Brunei
% Growth -94.63 10.17 30.59 -27.48
Exports 60,998.60 85,808.61 87,409.72 93,502.35
% Share 0.0373 0.0450 0.0461 0.0545
Cambodia
% Growth 27.74 40.69 1.87 6.97
Exports 2,899,608.70 2,933,987.09 2,467,435.24 1,844,642.38
% Share 1.7742 1.5401 1.3012 1.0747
Indonesia
% Growth -9.67 1.19 -15.90 -25.24
Exports 15,712.71 30,499.48 41,293.77 24,613.33
% Share 0.0096 0.0160 0.0218 0.0143
Laos PDR
% Growth 114.64 94.11 35.39 -40.40
Exports 2,414,350.85 2,541,360.81 3,561,410.74 2,415,950.98
% Share 1.4773 1.3340 1.8780 1.4076
Malaysia
% Growth 26.38 5.26 40.14 -32.16
Exports 296,070.66 480,568.13 473,624.48 708,234.52
% Share 0.1812 0.2523 0.2498 0.4126
Myanmar
% Growth 11.96 62.32 -1.44 49.54
Exports 646,549.08 861,017.68 853,140.02 901,245.70
% Share 0.3956 0.4520 0.4499 0.5251
Philippines
% Growth 35.74 33.17 -0.19 5.64
Exports 7,399,496.63 7,496,620.27 5,985,397.67 5,053,132.25
% Share 4.5276 3.9352 3.1563 2.9441
Singapore
% Growth -7.92 1.31 -20.16 -15.58
Exports 2,031,024.16 2,243,108.17 2,120,920.91 1,955,687.28
Thailand % Share 1.2427 1.1775 1.1184 1.1394

% Growth 42.49 10.44 -5.45 -7.79
Exports 2,156,284.25 3,325,325.42 3,831,863.74 3,459,039.14
Vietnam % Share 1.3194 1.7456 2.0207 2.0153
% Growth 19.23 54.22 15.23 -9.73
41

Chart- 2.1: India’s Exporrt to ASEAN
A
ASEAN EXPO
ORT
2500
00000
2000
00000
1500
00000
1000
00000
500
00000 ASEAN EEXPORT
0
C
Chart –2.2: AS
SEAN Share in
n India’s Exporrt
ASSEAN % Shaare
15
10
5
ASEAN % Share
0
Chart-- 2.3: Growth rate

r of ASEAN
N Exports from
m India
ASEAN % Grow
wth
60
50
40
30
20 ASEAN % G
Growth
10
0
‐10
‐20
42

The table 2.1 - 2.1.2, represents the India’s export to ASEAN countries.
The data is self explanatory. Since the year 2000, India’s major export
destination have been Singapore, Malaysia, Indonesia and Thailand.
Singapore’s total trade shows an increasing trend in its share percentage and
growth rate percentage over the years since 2000, Singapore is the largest
market for Indian exports within ASEAN.
Malaysia is India’s second most important trading partner among the

ASEAN countries. The Spectacular progress of the Malaysian economy is due
to the self confidence of Malaysian entrepreneurs. The liberalisation of the
Indian Economy since 1991 has triggered new dimensions in bilateral
commercial and economic relations. Sustained economic growth liberalised
trade policy multilaterally, regionally and bilaterally, has served as a stepping
stone for India to sign Free Trade Agreement with ASEAN. India had many
bilateral visits during the initial period of Free Trade Agreement in 1997 but
took real shape in 2001. The data shows that Thailand’s growth of exports has
been reduced from 11.04 percent in 2004 to 5.98 percent in 2005; this may be
due to lesser demand of exports.
There seems to be an uneven trend of growth percent in the case of

countries like Brunei, Cambodia, Laos PDR and Philippines. In continuation,
the table shows a minimal decline in the growth rate ranging from - 3.25
percent for Myanmar to -14.43 for Malaysia, during the year 2010. The overall
growth rate has declined by - 0.72 percent which is the impact of Asian
financial crisis.
The export growth rates of Singapore show a decline in the growth rate
which ranged from -7.92 percent in 2013 to -20.16 percent in 2015 and 15.58
percent in 2016. Since, Singapore is the major destination for Indian exports
there has been a decline in share percentage too. On analysis, the overall growth
rate of India’s export faced a decline due to restriction on trade, regulations,
lapse of agreements, decrease in money value, Change in policies, slow pace of
reforms to liberalise the Indian Economy, and the process of governance being
complicated unlike other nations.
The summary of table - 2.1, 2.1.1, and 2.1.2 gives details of the overall
growth rate of export to ASEAN countries for the year 2001 to June 2016. The
data illustrates that there has been a considerable growth ranging as low as 1.99
43

percent in the year 2012 to highest growth rate of 50.81 percentages in the year
2012. When Asian countries were facing the financial crisis there was a
negligible decline in growth rate to the extent of - 0.72 percent. But in the
consecutive years, the growth rate increased to 35.80 percent in 2011 and 50.81
percent in the 2012.This tells about the ASEAN success in with standing the
financial crisis. The growth rate has declined to -2.85 percent for the year 2015
and has further declined to -15.29 percent in June 2016. This was due to
restrictions imposed, change in policy, change in tariff rate, removal of
subsidies, changes in trade facilitation. The data depicts and confirms the
growth rate in exports since 2000 to 2006 with ASEAN dialogue partners.
India’s exports when compared to the world exports constitute about 0.3818
percent.
Comparison of India’s Export with ASEAN and the World

The trade expansion with ASEAN countries could bring change in the
trading environment such as improved and enabling trade cost. This trend
become an important market for ASEAN’s export and vice - versa.
Table – 2.1.3: Comparison of Total Exports of India with ASEAN and World
from 2001 to 2006
(Value in Millions)
2001 2002 2003 2004 2005 2006
Exports 20,357,101.09 20,901,797.34 25,513,727.66 29,336,674.75 37,533,952.62 45,641,786.15

India % Growth - 2.68 22.06 14.98 27.94 21.60
Exports 133,143.70 1,648,716.13 2,235,155.58 2,675,167.42 3,785,878.10 4,609,447.17

% Share 6.5390 7.8879 8.7606 9.1189 10.0865 10.0992
ASEAN % Growth - 23.86 35.57 19.69 41.52 21.75
Exports 6,114,485,767 6,403,653,403 746,3423,856 9,087,575,488 10,342,324,066 11,952,137,642
World % Growth - 4.7 16.54 21.76 13.80 15.56
India.www.commerce.nic.in / * world export in US$ in crores. # % share data not available
Tables 2.1.3, 2.1.4, 2.1.5 depict the overall export of India in comparison
with ASEAN export and world export. The data clearly explains that world
exports shows increasing trend. However, in the year 2009, the world exports
have declined to -22.91 percent. This was due to recession. During 2011, there
has been a recovery and decline in the growth rate and has been very low to the
extent of -2.1650 percent to world at large. This was the impact of recession
which reflected as -13.55 percent in the year 2015. The overall export growth
44

rate of India came down to - 0.45 in 2015 and it further declined to -9.49
percent in the year 2016. This shows that India has not been serious about
implementing its reform, and the process of governance in India appears to be
complicated.
Table - 2.1.4 : Comparison of Total Exports of India with ASEAN and World
from 2007 to 2011
(Value in Millions)
2007 2008 2009 2010 2011

India# Exports 57,177,928.52 65,586,352.18 84,075,505.87 84,553,364.38 113,696,426.38
% Growth 25.28 14.71 28.19 0.57 34.47
Exports 5,707,646.89 6,593,187.52 8,652,513.72 8,590,247.20 11,665,785.26
ASEAN % Share 9.9823 10.0527 10.2914 10.1596 10.2605
% Growth 23.82 15.51 31.23 -0.72 35.80
Exports 1,377,4387,292 15,973,576,744 12,313,949,381 15,063,695,476 18,077,986,104
World *#
% Growth 15.24 15.96 -22.91 20.01 -2.1650
Table - 2.1.5 : Comparison of Total Exports of India with ASEAN and World from
2012 to 2016
(Value in Millions)
2012 2013 2014 2015 2016
Exports 146,595,939.96 163,431,828.96 190,501,108.86 189,634,841.76 171,637,804.58
India# % Growth 28.94 11.48 16.56 -0.45 -9.49
Exports 17,592,624.27 17,941,925.71 20,017,906.47 19,448,105.38 16,474,619.81
% Share 12.0008 10.9782 10.5080 10.2556 9.5985
ASEAN % Growth 50.81 1.99 11.57 -2.85 -15.29
World *# Exports 18,364,576,876 18,864,055,146 18,866,319,713 16,346,668,440 -
% Growth 2.719 -13.350 0.01 -13.355 -
The table 2.2 gives the summary of India’s export to ASEAN region over
the years. The growth during the year 2009-2010 shows a decline in growth rate
by -0.72 percent and during 2014-2015 and 2015-2016 it further declined from -
2.85 to -15.29. Similarly, India has been experiencing a minimal growth rate of
0.57 percent during 2010 when the world was facing financial crisis. However,
there has been negligible decline of -0.46 percent for the year 2014-2015 and
this was due to changes in restrictions imposed in regulations and policies.
45

Chart- 2.44: Total Exporrts of India
IN
NDIA Exporrts
2500
00000
2000
00000
1500
00000
1000
00000
INDIA EExports
5000
00000
0
Chart- 2.5: Grrowth rate of India’s

I Exports
INDIA % Grow
wth
40
35
30
25
20
15
INDIA % G
Growth
10
5
0
‐5
Chart - 2.6: World Exports

E
W
World Expor
rts
20,0
000,000,000
18,0
000,000,000
16,0
000,000,000
14,0
000,000,000
12,0
000,000,000
10,0
000,000,000
8,0
000,000,000
World Exxports
6,0
000,000,000
4,0
000,000,000
2,0
000,000,000
0
46

Chart - 2.7: World Exports Growth percentage
WORLD %Growth
30
20
10
0 WORLD %Growth
‐10
‐20
‐30
Chart- 2.8: Comparison of ASEAN Exports with World Exports
ASEAN ‐ WORLD EXPORT
2E+10
1.8E+10
1.6E+10
1.4E+10
1.2E+10
1E+10
ASEAN EXPORT
8E+09
6E+09 WORLD Exports
4E+09
2E+09
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Chart - 2.9: Comparison of India Export with the World Export
INDIA ‐ WORLD EXPORT
2E+10
1.5E+10
1E+10
INDIA Exports
5E+09 WORLD Exports
47

Table - 2.2: India’s Export to ASEAN Region from 1996 - 1997 to 2016 – 2017
(Value in Rs. Lacs)
Sl.No Year ASEAN %Share % Growth India’s Total Export % Growth

1 1996-1997 1030,365.37 8.6718 - 11,881,797.38 -
2 1997-1998 916,032.54 7.0858 11.10 12,927,770.02 8.80
3 1998-1999 685,741.73 4.9098 25.14 13,975,315.65 8.10
4 1999-2000 969,569.78 6.0765 41.39 15,956,177.56 14.17
5 2000-2001 1,331,143.70 6.5390 37.29 20,357,101.09 27.58
6 2001-2002 1,648,716.13 7.8879 23.86 20,901,797.34 2.68
7 2002-2003 2,235,155.58 8.7607 35.57 25,513,727.66 22.06
8 2003-2004 2,675,167.42 9.1189 19.69 29,336,674.75 14.98
9 2004-2005 3,785,818.10 10.0865 41.52 37,533,952.62 27.95
10 2005-2006 4,609,447.17 10.0992 21.75 45,641,786.15 21.60
11 2006-2007 5,707,646.89 9.9823 23.82 57,177,928.52 25.28
12 2007-2008 6,593,189.52 10.0527 15.51 65,586,352.18 14.71
13 2008-2009 8,652,513.72 10.2914 31.23 84,075,505.87 28.19
14 2009-2010 8,590,247.20 10.1596 -0.72 84,553,364.38 0.57
15 2010-2011 11,665,785.26 10.2605 35.80 113,696,426.38 34.47
16 2011-2012 17,592,624.27 12.008 50.81 146,595,939.96 28.94
17 2012-2013 17,941,925.71 10.9782 1.99 163,431,828.96 11.48
18 2013-2014 20,017,906.47 10.5080 11.57 190,501,108.86 16.56
19 2014-2015 19,448,105.38 10.2556 -2.85 189,634,841.76 -0.46
20 2015-2016 16,474,619.81 9.5985 -15.29 171,637,804.58 9.46
21 2016-2017 4,291,807.71 9.7882 43,846,935.25 -
Source: Data compiled from 1996-1997 to 2016-2017 (April-June) - Ministry of Commerce and
Industry, Department of Commerce, Government of India. Export / Import/ Data Bank - Region
Wise. www.commerce.nic.in/eidb/orgnq.asp.
Chart - 2.10: Comparison of India - ASEAN Exports
ASEAN ‐ INDIA EXPORT
25000000
20000000
15000000
10000000 ASEAN EXPORT
50000000 INDIA Exports
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
48

Table - 2.3: India’s Export to ASEAN: Item - wise
2005-2006 2015-2016 CAGR

ITEM U.S. $ % SHARE U.S. $ % SHARE 2015-2016/
Million IN TOTAL Million IN TOTAL 2005-2006
1. Fresh Vegetables & fruits 76 0.7 216 0.9 11.0
2. Meat products 193 1.9 2649 10.5 29.9
3. Fish products 97 0.9 1089 4.3 27.4
4. Spices 46 0.4 499 2/0 26.9
5. Sugar 22 0.2 488 1.9 36.3
6. Oil Cakes &Fodder 527 5.1 225 0.9 -8.2
6. Petroleum products 2463 23.7 3766 14.9 4.3
5. Chemicals 1071 10.3 1698 6.7 4.7
a) Inorganic 84 0.8 130 0.5 4.5
b) Organic 834 8.0 1234 4.9 4.0
c) Special Chemicals 153 1.5 334 1.3 8.0
7. Pharmaceuticals 163 1.6 717 2.8 16.0
8. Plastic & Raw materials 148 1.4 348 1.4 8.9
9. Rubber & products 88 0.8 226 0.9 9.9
10. Precious stones & Jewellery 1590 15.3 1106 4.4 -3.6
11. Paper & Pulp 25 0.2 131 0.5 18.0
12. Cotton 165 1.6 602 2.4 13.8
13.MM filaments/Fibre 108 1.0 273 1.1 9.7
14. Iron & Steel & articles 675 6.5 723 2.9 0.7
15.Non ferrous metals 469 4.5 1322 5.2 10.9
13. Mechanical appliance 348 3.3 1617 6.4 16.6
16. Electrical & electronics 280 2.7 798 3.2 11.0
17. Transport equipment 698 6.7 2150 8.5 11.9
a) Rail equipment 2 - 7 - -
b) Auto & component 240 2.3 1051 4.2 15.9
c) Aircraft & Parts 3 - 115 0.4 44.0
d) Ships 453 4.4 977 3.9 8.0
18. Optical/photo instrument 78 0.7 356 1.4 16.4
Sub total 1 to 18 9330 89.6 20999 83.3 8.5
Total ASEAN 10411 10.1* 25195 9.6* 9.2
Total Global 103091 - 262031 - 9.8
Note: * Share of exports to ASEAN in total exports; CAGR- Compound Annual Growth rate
Source: Import Export Data Bank, Government of India, Department of Commerce,
http://www.commerce.nic.in/eidb/default.asp
49

Commodity wise Exports

There is a global demand for items of export such as food products,
tobacco and beverages, metals, mineral, fuel, leather, pharmaceutical products,
chemicals, rubber and plastics, non - metallic mineral products, basic metals
and alloys, transport equipment, textile products, wood and paper and cotton.
The healthy growth in trading activities has established strong trade links with
some ASEAN countries like Singapore, Indonesia and Malaysia.
The table 2.3 presents the item - wise exports of India to ASEAN
countries, its percentage share in total and compound aggregate of growth rate.
The data for 2005-06 and 2015-16 are compared to find out the changes in
growth rate on the items exported over the years. The table shows that there has
been demand for products like fresh vegetables, chemical, precious stone,
pharmaceutical and auto spares. There has been Global demand for the products
and it has increased from 103091 million to 26,2031 million which amounts to
9.8% growth rate. However, in 2005-06 the total percentage share for paper &
pulp is least at 0.2 percent and the highest is 23.7 percent for petroleum
products. In 2015- 2016 the percentage growth for the fresh vegetables is as
low as 0.9 percent and 14.9 percent for petroleum products. It is clear from the
table that there has been a decrease in the growth rate of the petroleum
products. The compound aggregate growth rate shows a decline in demand for
precious stones at -3.6 percent, -8.2 percent for oil cakes and increase in aircraft
parts to 44 percent.
India’s Imports with ASEAN

Trade between countries across the world has grown rapidly over the last
few decades. The growth in trade has been due to worldwide drop in import
tariff of goods. The easing of Global crisis has increased the demand for
imports from the developed countries. This implies that the world trade is
expected to grow faster in the coming years. Imports have grown more rapidly
than exports and the trend continues post the implementation of Free Trade
Agreement.
The table 2.4, 2.4.1 and 2.4.2 represent the data pertaining to India’s
import to ASEAN. The data shows that there has been a considerable growth in
importing goods and services from ASEAN countries to India. The data show a
decrease in imports from ASEAN countries which ranges from -0.85 percent to
as high as -60.54 percent from countries like Brunei, Cambodia, Laos PDR, to
mention a few.
50

Table - 2.4: India’s Import from ASEAN Countries from 2001 to 2006
(Value in Millions)
2001 2002 2003 2004 2005 2006

Imports 69.26 196.60 156.29 154.97 242.27 389.35
Brunei % Share 0.003 0.007 0.005 0.004 0.005 0.0006
% Growth - 144.89 -7.85 -0.85 56.34 60.71
Imports 604.75 532.35 294.46 126.77 108.27 343.61
Cambodia % Share 0.0026 0.0022 0.0010 0.0004 0.0002 0.0005
% Growth - -11.97 -44.69 -56.95 -14.59 217.36
Imports 415,839.10 494,475.81 668,276.05 975,121.14 1,176,190.06 1,331,795.58
Indonesia % Share 1.8012 2.0166 2.2485 2.7154 2.3474 2.0166
% Growth - 18.91 35.51 45.92 20.62 13.23
Imports - 19.90 71.96 58.91 23.24 46.34
Laos PDR % Share - 0.0001 0.0002 0.0002 0.0000 0.0001
% Growth - - 302.01 -18.14 -60.54 99.37
Imports 537,613.59 540,604.78 709,192.46 940,423.25 1,032,979.47 1,069,473.44
Malaysia % Share 2.3286 2.2048 2.3862 2.6188 2.0616 1.6194
% Growth - 0.56 31.19 32.60 9.84 3.53
Imports 83,004.20 178,572.37 162,628.85 187,946.65 182,382.99 232,862.77
Myanmar % Share 0.3595 0.7283 0.5472 0.5234 0.3640 0.3526
% Growth - 115.14 -8.93 15.57 -2.96 27.68
Imports 28,798.59 45,232.53 59,898.34 56,111.23 84,199.37 104,260.26
% Growth - 57.07 32.42 -6.32 50.06 23.83
Imports 668,780.39 621,944.90 694,381.35 958,260.18 1,191,311.70 1,484,833.35
Singapore % Share 2.8967 2.5365 2.3364 2.6684 2.3776 2.9554
% Growth - -7.00 11.65 38.00 24.32 24.64
Imports 154378.54 201,779.47 183,418.68 279,868.85 389,050.73 536,409.91
Thailand % Share 0.6687 0.8229 0.6171 0.7793 0.7764 0.8122
% Growth - 30.70 -9.10 52.58 39.01 37.88
Imports 5,662.50 9,019.16 14,123.01 17,560.23 38,865.36 58,169.04
Vietnam % Share 0.0245 0.0368 0.0475 0.0489 0.0776 0.0881
% Growth - 59.28 56.59 24.34 121.33 49.67
Imports 1894750.91 2092348.88 2,492,41.46 3,415,632.18 4,095,353.47 4,818,583.66
ASEAN % Share 8.2069 8.5332 8.3862 9.5114 8.1733 7.2964
% Growth - 10.43 19.12 37.04 19.90 17.66
51

Table - 2.4.1: India’s Import from ASEAN Countries from 2007 to 2011
(Value In Millions)
2007 2008 2009 2010 2011

Imports 129,068.31 90,868.70 188,194.37 202,852.73 106,485.70
Brunei % Share 0.1536 0.0898 0.1369 0.1487 0.0633
% Growth 33.53 -29.60 107.11 7.79 -47.51
Imports 714.94 1155.25 1197.33 2405.90 3637.69
Cambodia % Share 0.0009 0.0011 0.0009 0.0018 0.0022
% Growth 108.07 61.59 3.64 100.94 51.20
Imports 1,886,485.99 1,942,053.15 3,075,129.40 4,100,880.75 4,513,629.30
Indonesia % Share 2.2445 1.9184 2.2374 3.0071 2.6812
% Growth 41.65 2.95 58.84 33.36 10.06
Imports 162.52 45.69 214.92 9218.20 100.53
Laos PDR % Share 0.0002 0.0000 0.0002 0.0068 0.0001
% Growth 250.70 -71.88 370.37 4189.03 -98.91
Imports 2,395,876.10 2,417,613.44 3,259,156.48 2,449,403.25 2,974,590.44
Malaysia % Share 2.8505 2.3882 2.3713 1.7961 1.7669
% Growth 124.02 0.91 34.81 -24.85 21.44
Imports 354,094.52 325,928.14 424,076.82 610,794.46 465,115.40
Myanmar % Share 0.4213 0.3220 0.3085 0.4479 0.2763
% Growth 52.06 -7.95 30.11 44.03 -23.85
Imports 75,737.13 82,387.82 116,542.91 149,329.11 195,046.60
Philippines % Share 0.0901 0.0814 0.0848 0.1095 0.1159
% Growth -27.36 8.87 41.46 28.13 30.62
Imports 2,483,996.69 3,268,217.81 3,456,141.62 3,062,330.81 3,254,576.75
Singapore % Share 3.2285 2.5146 3.2455 1.9333 1.6930
% Growth 67.29 31.57 5.75 -11.39 6.28
Imports 789,880.06 926,400.41 1,235,265.25 1,388,850.94 1,945,991.14
Thailand % Share 0.9398 0.9151 0.8987 1.0184 1.1559
% Growth 47.25 17.28 33.34 12.43 40.12
Imports 75,861.20 69,807.09 186,226.30 245,911.66 848,759.06
Vietnam % Share 0.0903 0.0690 0.1355 0.1803 0.2880
% Growth 30.42 -7.98 166.77 32.05 97.13
Imports 8,191,877.46 9,124,477.50 11,942,145.40 12,221,977.80 13,943,932.60
ASEAN % Share 9.7464 9.0135 8.6888 8.9621 8.2829
% Growth 70.01 11.38 30.88 2.34 14.09
52

Table - 2.4.2: India’s Import from ASEAN Countries from 2012 to 2016
(Value In Millions)
2012 2013 2014 2015 2016

Imports 285,369.97 440,597.91 457,496.70 513,396.97 361,037.07
Brunei % Share 0.1217 0.1651 0.1685 0.1876 0.1450

% Growth 167.99 54.40 3.84 12.22 -29.68
Imports 3463.66 6469.52 7729.41 10978.57 35973.42
Cambodia % Share 0.0015 0.0024 0.0028 0.0040 0.0144

% Growth -4.78 86.78 19.47 42.04 227.67
Imports 7,041,989.62 8,096,569.76 8,903,542.02 9,184,535.268 8,579,957.42
Indonesia % Share 3.0024 3.0334 3.2789 3.3556 3.4454

% Growth 56.02 14.98 9.97 3.16 -6.58
Imports 44,065.07 76,479.58 2,2919.32 52,282.93 118,162.51
Laos PDR % Share 0.0188 0.0287 0.0084 0.0191 0.0474

% Growth 43734.37 73.56 -70.03 128.12 126.01
Imports 4,538,502.77 5,419,876.33 5,590,211.37 6,791,883.78 249,029,808.12
Malaysia % Share 1.9350 2.0306 2.0587 2.4814 2.3842

% Growth 52.58 19.42 3.14 21.50 -12.58
Imports 661,401.33 770,118.21 83,9148.23 747,653.51 637838.72
Myanmar % Share 0.2820 0.2885 0.3090 0.2732 0.2561

% Growth 42.20 16.44 8.96 -1090 -14.69
Imports 212,544.32 274,358.42 237,220.43 258,508.64 353,162.56
Philippines % Share 0.0906 0.1028 0.0874 0.0944 0.1418

% Growth 8.97 29.08 -13.54 8.97 36.62
Imports 3,970,847.55 4,076,395.09 41,063,46.94 4,355,230.46 4,773089.37
Singapore % Share 1.5272 1.5122 1.5912 1.9168 1.9121

% Growth 22.01 2.66 0.73 6.06 9.60
Imports 2,532,484.41 2,911,298.10 3,238,001.02 3,586,241.00 3,601,107.17
Thailand % Share 1.0797 1.0907 1.1924 1.3102 1.4461

% Growth 30.14 14.96 11.22 10.75 0.41
Imports 832,325.93 1,259,442.24 1,556,837.66 1,839,804.38 1,676,311.58
Vietnam % Share 0.3549 0.4718 0.5733 0.6722 0.6731

% Growth 71.70 51.32 23.61 18.18 -8.39
53

Chart - 2.11: India Imports from ASEAN
ASEAN Imports
30000000
25000000
20000000
15000000
10000000 ASEAN Imports
5000000
0
Chart – 2.12: ASEAN Share in India’s Imports in Percentage
ASEAN % Share
12
10
8
6
4 ASEAN % Share
2
0
Chart – 2.13: ASEAN Imports Growth Rate
ASEAN % Growth
80
60
40
ASEAN % Growth
20
‐20
54

Chart – 2.114: Total Impo

orts of India
IN
NDIA Imporrts
300
000000
250
000000
200
000000
150
000000
100
000000 INDIA Imp
ports
500
000000
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
C
Chart – 2.15: Growth
G Rate off India’s Imporrts
INDIA Imports % G
Growth
50
0
40
0
30
0
20
0
IN
NDIA Imports % Gro
owth
10
0
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
‐10
0
‐20
0
Chart – 2.16: World Imports
WORLD Impo
orts
2E+10
1.5E+10
1E+10
WORLD Impo
orts
5E+09
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
55

Chart – 2.17: World Growth Rate
WORLD % Growth
25
20
15
10
5
0
WORLD % Growth
‐5
‐10
‐15
‐20
‐25
‐30
Chart – 2.18: Comparison of India ASEAN Imports
ASEAN ‐ INDIA Imports
30000000
25000000
20000000
15000000
ASEAN Imports
10000000
50000000 INDIA Imports
0
Chart – 2.19: Growth of India - ASEAN Imports
ASEAN ‐ INDIA Imports % Growth
80
70
60
50
40 ASEAN Imports % Growth
30
20 INDIA Imports % Growth
10
0
‐10
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
‐20
56

The total import of ASEAN was 70.01 million in 2007, in 2009 the
ASEAN import was 30.88 million but by 2011 the import decreased to 14.09
million. This decrease was due to the recession in the ASEAN countries. There
is unstable trend in the growth rate, though the outlook for trade between
ASEAN and India is bright, it is insipid during the year 2016 when it declined
to – 4.63 percent. On comparison, nearly 52.03 percent of goods are imported
from ASEAN. It is clear that the imports from ASEAN to India had been
uneven over the years for few ASEAN countries individually. But the overall
imports from ASEAN to India range from as high as 70.01 percent in the year
2007 to as low as 2.34 percent in the year 2010 during financial crisis. The
imports for the current period June 2016 show a decrease in imports to -4.63
percent. The country - wise analysis shows that the imports have decreased in
few ASEAN member countries. But overall, there has been a steady imports
from ASEAN to India with a decline in the current year.
Comparison of India’s Imports with ASEAN and the World

Making trade between ASEAN and India seamless would require
complementary policy initiatives by countries, regional organisation and
multilateral development institutions to strengthen the capacity of countries.
India’s import to ASEAN and the world at large is compared to have an
understanding about the trade pattern.
Table 2.5, 2.5.1, 2.5.2 depicts India’s contribution to world imports which
is about 0.3650 percent in the year 2001 which increased to 1.650 percent in
the year 2015. Overall there was a stable growth with a rising trend in world
imports. India‘s export contribution to the world were 0.3329 percent and
increased over the years to 1.600 percent in the year 2015. Both imports and
exports on comparison with the world show a rising trend despite of financial
crisis during the year 2010. The exports of India on comparison with ASEAN
member countries shows a positive growth of 0.57 percent during the financial
crises year 2010 however, there has been a negligible impact of - 0.46 percent
during the year 2014 – 2015. India’s import declined to - 0.78 percent during
the year 2010.
57

Table – 2.5: Comparison of Total Imports of India with ASEAN and world from
2001-2005 (value in Millions)
2001 2002 2003 2004 2005

Imports 230,87,276.04 24,519,971.86 29,720,587.40 35,910,766.37 50,106,454.03
India
% Growth - 6.21 21.21 20.83 39.53
Imports 1894750.91 2092348.88 2,492,41.46 3,415,632.18 4,095,353.47
ASEAN
% Share 8.2069 8.5332 8.3862 9.5114 8.1733
% Growth - 10.43 19.12 37.04 19.90
World*# Imports 6,324,502,572 6,587,172,662 7,684,421,451 9,384,381,113 10,608,264,051
% Growth - 4.15 16.65 22.12 13.04
India.www.commerce.nic.in/ *# World imports in US$ in Crores. # % share data not available
Table – 2 .5.1: Comparison of Total Imports of India with ASEAN and world from
2006 2007 2008 2009 2010

Imports 66,040,890.33 84,050,631.33 101,231,169.93 137,443,555.45 136,373,554.76
India % Growth 31.80 27.27 20.44 35.77 -0.78
Imports 4,818,583.66 8,191,877.46 9,124,477.50 11,942,145.40 12,221,977.80
% Share 7.2964 9.7464 9.0135 8.6888 8.9621
ASEAN % Growth 17.66 70.01 11.38 30.88 2.34
World*# Imports 12,246,171,979 14,105,642,792 16,353,714,727 12,602,647,143 15,313,710,981
% Growth
Table – 2.5.2: Comparison of Total Imports of India with ASEAN and world from
2011 2012 2013 2014 2015

Imports 168,346,695.57 234,546,324.45 266,916,195.69 271,543,390.74 273,708,657.84
India % Growth 23.45 39.32 13.80 1.73 0.80
Imports 13,943,932.60 23,331,605.17 24,959,453.10 27,340,515.51 26,074,356.82
ASEAN % Share 8.2829 8.7412 9.1917 9.9889 10.4704
% Growth 14.09 44.31 15.94 6.98 9.54
World*# Imports 18,314,014,193 18,497,509,720 18,882,567,997 18,914,694,622 16,582,021,695
% Growth 19.59 1.00 2.08 0.17 -12.33
58

Chaart – 2.20: ASE

EAN - World Growth
G Percen
ntage
A
ASEAN ‐ WO
ORLD Imporrts % Growtth
80
60
40
ASSEAN Imports % Grrowth
20
W
WORLD Imports % Gr
rowth
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
‐20
‐40
Chart- 2.21: India –World Import

I Growth
h
INDIA ‐ WORLD Imports
2EE+10
1.5EE+10
1EE+10
INDIA Impo
orts
5EE+09
WORLD Im
mports
0
Chaart - 2.22: Com

mparison of Ind
dia World Imp
ports
INDIA ‐ WO
ORLD Importts % Growth
50
40
30
20
IN
NDIA Imports % Grow
wth
10
W
WORLD Imports % Gr
rowth
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
‐10
‐20
‐30
59

Chart – 2.23: Growth Percentage of India - ASEAN Imports
ASEAN ‐ INDIA Imports % Growth
80
70
60
50
40 ASEAN Imports % Growth
30
20 INDIA Imports % Growth
10
0
‐10
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
‐20
Chart - 2.24: India-ASEAN Export and Imports
30,000,000.00
25,000,000.00
20,000,000.00
15,000,000.00
Exports
10,000,000.00 Imports
5,000,000.00
0.00
The percentage of goods imported by India shows fluctuations in growth

rate whereas, it is evident that India depends on ASEAN countries for its
resources this increase in imports are due to cost effectiveness. But the overall
analysis show the imports of India have come down to - 9.20 percent.
The table 2.6 represents the summary of India’s imports and exports in
ASEAN region over the years. There has been a considerable growth over a
decade, except for a decline in growth rate as - 4. 63 percent in the year 2015-
2016. The impact of the same is shown in India as it has reduced its imports
from ASEAN and there has been a decline in imports to the extent of -9.02
percent.
60

Table - 2.6: India Import from ASEAN Region – 1996 – 1997 to 2016 – 2017
(Value in RS. Lacs)
Sl.No Year ASEAN %Share % Growth INDIA’s Total % Growth
Imports
1 1996-1997 1,041,566.32 7.4976 13,891,966.47 -
2 1997-1998 1,262,280.47 8.1873 21.19 15,417,628.82 10.98
3 1998-1999 1,816,349.10 10.1852 43.89 17,833,185.44 15.67
4 1999-2000 2,005,938.59 9.3071 10.44 21,552,843.89 20.86
5 2000-2001 21,522,843.89 8.2069 5.54 23,087,276.04 7.12
6 2001-2002 2,092,348.88 8.5332 10.43 24,519,971.86 6.21
7 2002-2003 2,492,441.46 8.3862 19.12 29,720,587.40 21.21
8 2003-2004 3,415,632.18 9.5114 37.04 35,910,766.37 20.83
9 2004-2005 4,095,353.47 8.1733 19.90 50,106,454.03 39.53
10 2005-2006 4,818,583.66 7.2964 17.66 66,040,890.33 31.8
11 2006-2007 8,191,877.46 9.7464 70.01 84,050,631.33 27.27
12 2007-2008 9,124,477.50 9.0135 11.38 101,231,169.93 20.44
13 2008-2009 11,942,145.40 8.6888 30.88 137,443,555.45 35.77
14 2009-2010 12,221,977.80 8.9621 2.34 136,373,556.7 - 0.78
15 2010-2011 13,943,932.60 8.2829 14.09 168,346,695.57 23.45
16 2011-2012 20,122,994.63 8.5795 44.31 234,546,324.45 39.32
17 2012-2013 23,331,605.17 8.7412 15.94 266,916,195 13.80
18 2013-2014 24,959,453.10 9.1917 6.98 27,154,390.74 1.73
19 2014-2015 27,340,515.51 9.9889 9.54 273,708,657.84 0.80
20 2015-2016 26,074,356.82 10.4704 - 4.63 249,029,808.12 - 9.02
21 2016-2017 6,388,212.35 11.3638 - 56,215,466.75 -
Industry, Department of Commerce, Government of India. Import / Export Data Bank - Region
61

Commodities - wise Import to ASEAN
Table – 2.7: India’s Import from ASEAN: Item - wise
ITEM 2005-2006 2015-2016 CAGR

U.S. $ % SHARE U.S. $ % SHARE 2015-2016/
Million IN TOTAL Million IN TOTAL 2005-2006
1. Pulses 254 2.3 835 2.1 12.6
2. Palm Oil 1025 9.4 5782 14.5 18.9
3. Petroleum products 9 - 2806 7.0 77.6
4. Coal 843 7.7 4842 12.2 19.1
5. Chemicals 1062 9.8 3053 7.7 11.1
a) Inorganic 85 0.8 329 0.8 14.5
b) Organic 802 7.4 2075 5.2 10.0
c) Special Chemicals 175 1.6 649 1.6 14.0
6. Pharmaceuticals 5 3.4 136 0.3 39.1
7. Plastic & Raw materials 369 1.1 1759 4.4 16.9
8. Rubber & products 123 0.6 995 2.5 23.3
7. Precious stones & Jewellery 69 5.2 817 2.1 28.0
8.Wood & Products 571 1.5 973 2.4 5.4
9. Paper & Pulp 163 1.3 358 0.9 8.2
10.MM filaments/Fibre 137 3.2 321 0.8 8.9
11. Iron & Steel & articles 353 1.9 1272 3.2 13.7
12.Non ferrous metals 202 18.3 1602 4.0 23.0
13. Mechanical appliance 1989 11.9 3741 9.4 6.5
14. Electrical & electronics 1298 4.6 4142 10.4 12.3
15. Transport equipment 502 - 1908 4.8 14.3
a) Rail equipment 0.3 0.6 1 - -
b) Auto & component 70 1.3 598 1.5 23.9
c) Aircraft & Parts 139 2.7 209 0.5 4.2
d) Ships 293 1.8 1100 2.8 14.1
16. Optical/photo instrument 200 84.3 617 1.5 11.9
Sub total 1 to 16 9174 10.6* 35959 90.3 14.6
Total ASEAN 10884 - 39843 15.2* 13.9
Total Global 103091 - 262031 - 9.8
Note: * Share of exports to ASEAN in total exports; CAGR- Compound Annual Growth rate.
Source: Import Export Data Bank, Government of India, Department of Commerce,
http://www.commerce.nic.in/eidb/default.asp
62

India imports select items out of 100 commodities which are imported
from ASEAN countries which include pulses, palm oil, chemicals both organic
and inorganic, pharmaceutical, transport equipment, rubber wood and plastic,
precious stones and jewellery, Auto components, Aircraft and parts, ships,
optical/photo instruments. The increasing composition of percentage share are
given below;
The table 2.7, portrays India’s import from ASEAN item - wise. It
ranges from pulses, coal, palm oil, photo instruments and other items. The
imports from ASEAN have increased from US$10884 million to US$ 39843
million which is about 3.6 times more. At the Global level the imports to
ASEAN amount to 2 times the US$ millions and compound growth rate is 9.8
percent. The table illustrates that India is the major importer of Mechanical
appliance which is about US$ 1989 million and its Share is 11.9 percent,
Electrical and Electronics with US$1298 million, Chemicals US$ 1062 million,
Palm oil US$ 1025 million, Coal with US$ 843 million. Other items like pulses,
transport equipment, aircraft parts, Photo instrument, rubber products range
between US$ 200 million to US$ 571 million respectively. India imports are
very less for rail equipment product which is about a US$ 3 million. The data
for the year 2015-16 shows that India’s major imports are Palm oil, Coal,
Petroleum Products, Chemicals, Electrical and electronics goods, Mechanical
appliances, Iron and Steel, Nonferrous metal, Aircrafts and ships and the
expenditure incurred to obtain these raw materials it ranges from US$ 1 million
to US$ 5782 million. The CAGR ranges from 4.2 percent to 77.6 percent.
Table 2.8.is an analysis of India’s trade with ASEAN member nations.

This enables one to understand the relative share ASEAN’s exports. The export
is showing a significantly rising trend from 2001 to 2009. The export growth
rate fell to -0.72 percent during 2009-2010, due to the financial crisis the
world was facing and so was the ASEAN. The trade revived and exports show
an increasing trend with 35.8 percent in the year 2010- 2011. Later it went on
to increase to 50.81 percent in 2011 -2012. The exports growth rate decreased
significantly to 1.99 percent. This was due to less demand of goods in the
international market. The year 2014-15 faced a decline in exports to the tune
of - 2.85 percent, exports which further declined to -15.29 in 2015 - 2016. This
had been the result of difference in rule of origin, and other trade facilities, levy
of custom duties so on. The Import share of India rapidly rose ranging from
63

10.43 percent in 2001 to 70.01 percent in the year 2005-2006. This shows that
India had been dependent on resources and raw materials from ASEAN
countries. From the year 2006- 2007, however, the imports have decreased to
2.34 percent in 2009-2010. The balance of trade shows a trade deficit ranging
from -97.80 percent in 2001-02 to -2.16 in the year 2015-2016. It is evident
that India is trying to overcome deficit by increasing its exports. The outlook of
the trade between India and ASEAN pales by comparison.
Table - 2.8: INDIA - ASEAN Balance of Trade from 2000 – 2017

(Value in US$ millions)
year Total exports Total Imports Balance Percentage Growth
to ASEAN from ASEAN of Trade ASEAN ASEAN Trade
Exports Imports Deficit/
2000-2001 1,331,143.70 21,522,843.89 - 20,191,700.19 - - -
2001-2002 1,648,716.13 2,092,348.88 - 443632.75 23.86 10.43 -97.80
2002-2003 2,235,155.58 2,492,441.46 -257285.88 35.57 19.12 -42.00
2003-2004 2,675,167.42 3,415,632.18 -740464.76 19.69 37.04 -0.0352
2004-2005 3,785,818.10 4,095,353.47 -309535.37 41.52 19.90 -58.19
2005-2006 4,609,447.17 4,818,583.66 -209136.49 21.75 17.66 -32.43
2006-2007 5,707,646.89 8,191,877.46 -2484230.57 23.82 70.01 -1.18
2007-2008 6,593,189.52 9,124,477.50 -2531287.98 15.51 11.38 -1.89
2008-2009 8,652,513.72 11,942,145.40 -3289631.68 31.23 30.88 -29.95
2009-2010 8,590,247.20 12,221,977.80 -3631730.6 -0.72 2.34 -10.39
2010-2011 11,665,785.26 13,943,932.60 -2278147.34 35.80 14.09 -37.27
2011-2012 17,592,624.27 20,122,994.63 -2530370.36 50.81 44.31 -11.07
2012-2013 17,941,925.71 23,331,605.17 -538969.46 1.99 15.94 -78.69
2013-2014 20,017,906.47 24,959,453.10 -4941546.63 11.57 6.98 -8.1
2014-2015 19,448,105.38 27,340,515.51 -7892410.13 -2.85 9.54 -59.71
2015-2016 16,474,619.81 26,074,356.82 -9599737.01 -15.29 - 4.63 -2.16

Industry, Department of Commerce, Government of India. Import / Export Data Bank - Region
64

Chart - 2.25: Ballance of Tradee from 2001to 2015

2
Table - 2.99: India’s Mercchandise Trad

de with ASEAN
N Countries
2005-2006 2015-2016 CAGR

R
COUN
NTRY Exports Imports TD
D Exports Imports TD 2015-16 / 2005-2006
$ $ $ $ $ $ Exports Imports
Million Million Millioon Million Million Million
Brunei 43 1 422 28 554 -5266 -4.0 90.5
Darussalam
Camboodia 24 1 233 143 54 89 19.4 52.9
Indonessia 1380 3008 -16228 2841 13068 -102227 7.5 15.8
Laos PDR 5 0 5 38 180 -1422 21.4 11.6
Malaysia 1162 2416 -12554 3707 9084 -53777 12.3 14.2
Myanm
mar 111 526 -415 1068 984 84 25.4 6.5
Philippines 495 235 2599 1369 542 826 10.7 8.7
Singapoore 5425 3354 20772 7722 7306 416 3.6 8.1
Thailannd 1075 1212 -136 3009 5510 -25011 10.8 16.4
Vietnam
m 691 131 5599 5270 2560 27100 22.5 34.6
Total ASEAN
A 10411 10884 -472 25195 39843 -146448 9.2 13.9
Total Global
G 103091 149166 -46075 262031 380665 -1186334 9.8 9.8
Source: Department off Commerce, Govvernment of Indiaa. http://commerce.nic.in/MOC/inddex.asp
Table 2.9 show
T ws that the merchandise
m traade between India
I and ASEEAN is
largelyy conducted by sea and without stron ng connectiviity it would not be
possibble to realise thhe full potentiial of the regioonal trade. Whhen the Worldd Trade
Organnisation establlished the insstitutional fraamework for trade in goods and
servicees, most counntries liberalizzed their tradee multilaterallly and bilateraally: so
too haas India. This was another stepping ston ne that was placed betweenn India
and ASEAN
A in AS SEAN- India Summit held in 2003 whicch led to signning of
Free Trade Agreeement betweeen these two o regions. TheT trade in goods
65

agreement that came to force resulted in increase in bilateral trade, enhanced

trade investment, facilitated cooperation, utilisation of the business
opportunities, bridge the developmental gap. The comparison of India’s
merchandise to ASEAN countries and the present CAGR for the import and
export over the decade is analysed and shows the trade relation between the
regions.
Foreign Direct Investment

The Economic Development witnessed during the past two decades in
India rests to great extent on foreign direct investment. India marked its
presence as one of the fastest growing economies in the world since 1991. To
ensure an uninterrupted inflow of Foreign Direct investment in India, the
regulatory environment in terms of foreign direct investment has been
consistently eased to make it investor friendly.22 India has risen steadily as a
host of overseas investment since 2000, when entirety of foreigner’s stake in the
economy was valued at US $16 Billion, which has increased to US $ 282
billion. In terms of yearly inflow the country still ranks far behind China. India
has been ranked as one of the top 10 attractive destinations for inbound
investment. The Foreign Direct investment policies are meant to provide ease of
doing business and accelerate the pace of foreign investment in the country.23
Table -2.10: Foreign Direct Investment inflow into India
Year Total FDI inflow %Growth over previous years in US$ terms
2000-2001 4,029 0
2001-2002 6,130 +52%
2002-2003 5,035 -18%
2003-2004 4,322 -14%
2004-2005 6,051 +40%
2005-2006 8,961 +48%
2006-2007 22,826 +146%
2007-2008 34,843 +53%
2009-2010 41,873 +20%
2010-2011 37,745 -10%
2011-2012 34,847 -8%
2012-2013 46,556 +31%
2013-2014 34,298 -26%
2014-2015 36,046 +5%
2015-2016 41,223 NA*
Source: Compiled from logs.wsj.com/indiarealtime/2016/06/23/foreign-direct-investment-into-
india-jumps-26-u-n-says/ retrieved on 10th September 2016.*Not Applicable.
66

Chart - 2.26: Foreign Direct Investment flow into India
Total FDI Inflow
50,000
40,000
30,000
20,000
Total FDI Inflow
10,000
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
The table 2.10 depicts the Foreign Direct Investment flow into India in US
dollars. The overall growth percentage clearly explains the amount of
investment received in India with highest growth of +146 percent during the
year 2006-2007 which reflects the tremendous scope, faith and trust that foreign
investors had in the Indian economy. The largest foreign direct investment
inflow to India has been from Mauritius. There was a moderate growth rate
during the year 2002, 2005, 2006, 2008 and 2013 respectively. The least growth
was during 2014-15 and a declining trend in FDI was faced during 2002, 2003.
During 2010-2011, 2011 -2012 it was -10 percent and -8 percent respectively.
This was due to recession period which went on to increase to - 26 percent in
2013-2014. A small growth was experienced during 2014-2015.
During the fiscal year 2014-15, the Indian government announced that it
would allow FDI worth US$ 14.65 billion in to railways infrastructure and
some of most expensive and large projects would be carried out under these
investments.
Foreign Direct Investment had a positive effect on the employment

scenario by generating job opportunities. Foreign direct investment offers a
source of external capital which is used for establishing large factories in small
developing countries. Every country should utilise their total labour force and
equipment for developing infrastructure. This would result not only in creation
of job but also bring in new business opportunities when foreign money is
pumped in to the economy. Market conditions in the developing countries may
be stable or unpredictable. However, opportunities for cheaper production and
fewer taxes are high.24 In the infrastructure development sector the government
of India relaxed the norms pertaining to area of restrictions, the law regarding
gaining a comfortable exit from a particular project and the requirements
67

relating to minimum capitalisation. If companies are ready to commit thirty

percent for minimum capitalization and area restriction can be waived off. This
would benefit the construction sector a lot especially in the form of greater
investment inflow.25
The Indian Ministry of Finance has proposed 100 percent FDI to be

allowed in railways related infrastructure. This does not include operational
aspects and foreigner will not be allowed to intervene in railway operation, they
will enable to provide high- speed trains, and enhance overall network in the
process.27 Foreign investors are displaying the immense faith in the ‘Make in
India’ drive of the Narendra Modi’s government and that may force the FDI
flood into India. Further advancement and upgradation of the infrastructure in
various sectors like telecommunications, automobiles, computers software and
hardware and construction development. 28 is likely to take place.
The Percentage allowed for Foreign Direct Investment in to the following Sectors:26
Sl.No Sector/Activity % Equity Entry Route

1. Agriculture and Animal husbandry 100% Automatic
2. Petroleum and Natural Gas 100% Automatic
3. Mining and Exploration of Metal and non-metal 100% Government
4. Civil aviation a) Green field 100% Automatic Up to74%
Automatic Above
b)Existing Projects 100% 74% Government
5. Air Transport 49% Automatic
a) Scheduled Air transport service 100%for Automatic
b) Regional - Scheduled Air Transport service NRI’s Automatic
c) Non - Scheduled Air transport service. 100%
d) Helicopter service 100% Automatic
6. Other services in Civil Aviation Sector
a) Ground handling services subject to 100% Automatic
regulation and security.
b) Maintenance & repair Organisation 100% Automatic
7. Trading 100% Automatic
8. e-Commerce activities 100% Automatic
9. Railway Infrastructure 100% Automatic
Source: Compiled from Department of Industrial policy and promotion. Ministry of
Commerce and Industry Government of India
68

The UNCATD survey indicates that multinational companies are restless

about the unpredictable exchange rates, geopolitical uncertainty and mounting
debt in developing countries.29 The Indian government has to create conducive
trade atmosphere and effective business policy measures like cheap cost wages
and tax exemption are some of the investment vantages that foreign investor
look for in the Indian Economy.
Table - 2.11: Foreign Direct Investment inflow from India to ASEAN 2004 – 2014
(US $ million)
COUNTRY 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Brunei 1 4 1 0.2 0 0 1 0.3 0 0 0

Darussalam
Cambodia 0 0 0 0 0 28 1 9 12 6 3
Indonesia -1 1 1 -345 1 6 6 -0.1 8 8 3
Laos PDR 0 0.04 0.02 0 0.03 3 0 0 0 0 1
Malaysia 4 5 -1,067 6 -71 108 41 -61 -23 -25 19
Myanmar 0.2 0 0 0 47 0 14 2 0 7 1
Philippines 0 0 1 0.2 -0.4 -0.01 0 -2 -0.4 -0.1 0.1
Singapore 99 408 974 3,016 1,532 398 3,408 -1,725 4,243 1,260 765
Thailand -7 3 -4 33 -101 9 -1 35 49 73 9
Vietnam 0 0 5 15 98 1 4 10 10 1 19
ASEAN 97 420 -89 2,725 1,506 553 3,474 -1,732 4,299 1,331 819
% Growth - 333 -121.19 316.2 -44.73 63.28 528.2 149.86 -348.21 1231 -
Source: ASEAN International Merchandise Trade Statistic year book 2015. ASEAN Secretariat
The table 2.11 presents the data on Foreign Direct Investment inflow from
India to ASEAN countries. The line chart also portrays the Foreign Direct
investment of India in ASEAN Countries. Initially in the year 2004 the
investment has been US$ 97 million followed with high investment made
during the subsequent year 2005 with US$ 420 million. Further there has been
a considerable decline in the investment during 2006 with US$ -89 million.
There has been moderate investment during the year 2005,2009 and 2014
ranging between US$ 420 millions to US$ 819 million. Least investments were
made during 2006 US$ - 89 million and US$ -1,732 million in the year 2011.
Efforts to convince various stakeholders, policy makers, business community,
labour and general public of the benefit of trade and investment liberalisation , a
high rise in investment to the extent of US$ 2,725 million in the year 2007,
69

followed by investment of US$ 1,506 million in 2008, US$ 3,474 million in

2010 when ASEAN faced financial crisis. A high amount of investment of US$
4,299 million in 2012 was made. This could have been due to recovery of
global market, tariff elimination and reduction in trade facilitation and
investment liberalisation. An Investment of US$ 1,331 million were made in
the year 2013. This indicates that India and the world at large has been
undergoing recession period that had been the reason for decline in Foreign
Direct Investment during 2014.
Chart – 2.27: Foreign Direct Investment Growth from 2001 to 2015
Foreign Direct Investment Growth percentage
160
140
120
100
80
Foreign Direct
60
Investment …
40
20
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
‐20
‐40
Chart – 2.28: Foreign Direct Investment Inflow and Growth Rate from 2001-2015
50,000
40,000
30,000
Total FDI Inflow
20,000
% Growth
10,000
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
‐10,000
70

Chart – 2.29: Foreign Direct Investment inflow from India to ASEAN

from 2004 – 2014
5000
4000
3000
2000
Investment by India in to ASEAN
1000
growth rate
0
1 2 3 4 5 6 7 8 9 10 11
‐1000
‐2000
‐3000
Chart – 2.30: Trend on India’s Foreign Direct Investment
3500
3000
2500
2000
1500
% growth
1000
500
0
‐500 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
‐1000
The chart 2.27, 2.28, 2.29 and 2.30, depicts the investment made and
clearly potrays that during 2005, 2007, 2010 and 2013 at peak growth which
ranges between 582 percent to 1231 percent in the year 2013.There was
moderate growth in the year 2011 with 149.86 percent. However, the growth
rates in the year 2006, 2008, 2009 and 2012 show a short fall which ranges
from -44.73 percent in the year 2008 and escalating its shortage rate to - 63.28
percent and with highest dearth being - 121.19 percent in the year 2006 and -
71

348.21 percent during the year 2012. This was due to low investment made
during the year 2006 and in the year 2011 which is reflected on growth.
Table - 2.12: Share of ASEAN Countries FDI in India from

April 2000-March 2010
Country FDI in US $ Million (April to March) Cumulative Total

(From April 2000 to
march 2010)
1991 1996 2000 - 2006 - 2007- 2008 - 2009- US $ Share

2005 2007 2008 2009 2010 (%)
Singapore 0.00 61.82 302.48 654.48 1,458.20 3,096.65 3,284.87 3,284.87 93.98
Indonesia 0.00 0.90 25.20 0.38 3.68 4.81 144.43 144.43 4.13
Malaysia 0.00 3.35 94.08 6.81 5.07 89.08 42.06 42.06 1.20
Thailand 0.00 24.55 24.60 2.95 12.69 2.54 23.49 23.46 0.7
Philippines 0.00 0.00 0.42 0.10 0.15 0.01 0.23 0.23 0.006
Vietnam - - 0.09 0.02 0.00 0.00 0.01 0.01 -0.00002
Myanmar - - - - - - - -
Grand Total - - - - - - - 3,495.06 -
Value in rupee was converted to that in commensurate US$ by using exchange rate figures provides
by RBI,
* Country-wise inflows of FDI in India January 2000 to January 2011.
Sources: SIA Annual Report ( Various Years).
http://dipp.nic.in/English/Publications/FDI_Statistics/2015/india_FDI_June2015.pdf
The table – 2.12, 2.12.1 depicts the Share of ASEAN countries investment
in India as Foreign direct investment. The highest cumulative investment in the
initial period of 2000-2005 were US$ 302.48 million invested by Singapore,
US$ 94.08 million by Malaysia, moderate investment of US$ 25.20 million and
US$ 24.60 million by Indonesia and Thailand respectively. Least investment of
US$ .42 million and US$ 0.09 million were made by Phillipines and Vietnam.
In the year 2010 -2011 Myanmar has also started investing into India with
initial investment of US$ 0.09 million which has increased to US$ 8.97 million
in 2016. However, the investments show an increasing trend, Singapore still
holds the position of the highest investor with US$ 50559.81 million, Malaysia
72

as the second highest investor with US$ 827.88 million, Indonesia as moderate
investor with US$ 625.81 million during 2016. The investment made by
phillipines has increased to US$ 225.28 million and that of Vietnam has
increased to US$ 0.50 million in the year 2016. The table also portrays that
apart from ASEAN India has the investors from Europe, America and other
Asian countries. ASEAN is considered as the attractive destination for India to
invest so is India to ASEAN countries. Singapore is the major investor to India
followed by Malaysia, Thailand, Indonesia and Philippines. Countries like
Myanmar and Vietnam have started taking interest in India after import
substitution.
Table - 2.12.1- Share of ASEAN Countries FDI in India from 2010-December 2016
Country FDI in US $ Million ( April to March ) Cumulative FDI in US
$ Million (April 2010
to December 2016)
2010- 2011- 2012- 2013- 2014- 2015- Up to US $ Share
2011 2012 2013 2014 2015 2016 Dec 2016 (%)
Singapore 10,190.08 11,895.19 16,202.66 18,975.73 23,138.62 30,707.07 50,559.81 50,559.81 96.29
Indonesia 604.28 605.31 605.76 610.30 611.44 622.02 625.81 625.81 1.189
Malaysia 352.97 293.36 309.58 541.75 634.02 730.40 827.88 827.88 15.76
Thailand 77.97 84.90 94.76 103.68 171.27 189.39 258.55 258.55 0.54
Philippines .90 1.40 3.82 27.96 32.65 122.82 225.28 225.28 0.42
Vietnam .13 .13 0.14 0.24 0.24. 0.32 0.50 0.50 0.0009
Myanmar 8.96 8.96 8.96 8.96 9.40 8.96 8.97 8.97 0.17
Grand - - - - - 52,506.79
Total
Value in rupee was converted to that in commensurate US$ by using exchange rate figures provides
by RBI,
* Country-wise inflows of FDI in India January 2000 to January 2011. SIA-security Industry
Association
Sources:SIA Annual Report ( Various Years).
http://dipp.nic.in/English/Publications/FDI_Statistics/2015/india_FDI_June2015.pdf
73

Chart – 2.31: Foreign Direct Investment Inflow from ASEAN Countries to India.
25000
Singapore
20000 Indonesia
15000 Malaysia
Thailand
10000
Phillipines
5000 Vietnam
0 Myanmar
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
‐5000

Table - 2.13: ASEAN Trading Across Borders
COUNTRY TIME TO EXPORT ( IMPORT) COST TO EXPORT (IMPORT) IN U.S.$
HOURS
DC BC DT TOTAL DC BC DT TOTAL
BRUNEI 168 72 3 243 90 340 250 680
DARUSSALAM (144) (48) (3) (195) (50) (395) (250) (695)
(121)
CAMBODIA 132 45 6 183 100 375 200 675
(98) (132) (4) (11) (147) (120) (240) (1125) (1485)
INDONESIA 72 39 6 117 170 254 185 609
(105) (144) (99) (6) (249) (160) (383) (185) (728)
LAOS PDR 216 3 2 221 235 73 150 458
(108) (216) (5) (2) (223) (115) (153) (150) (418)
MALAYSIA 10 20 12 42 45 321 255 631
(49) (10) (24) (12) (46) (60) (321) (255) (636)
MYANMAR 144 144 5 293 140 432 200 772
(140) (48) (120) (5) (173) (115) (367) (200) (682)
PHILIPPINES 72 42 4 118 53 456 381 890
(95) ( 96) (72) (4) (172) (50) (580) (381) (1011)
SINGAPORE 4 12 2 18 37 335 212 584
(42) (1) (35) (1) (37) (37) (220) (214) (471)
THAILAND 11 51 2 64 97 223 147 467
(56) (4) (223) (2) (229) (43) (233) (147) (423)
VIETNAM 83 57 7 147 139 309 181 629
(99) (106) (64) (7) (177) (183) (268) (181) (632)
INDIA 42 109 28 179 102 413 436 951
(133) (63) (287) (56) (406) (145) (574) (536) (1255)
Note: DC-Documentary Compliance; BC- Border Compliance; DT- Domestic Transport; Total=
DC+BC+DT, doing business 2016 Measuring Regulatory Quality Efficiency.
Source:http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Annual-
Reports/English/DB16-Full
74

This table 2.13 depicts an overview of ASEAN trading across borders.

The growth of trade between ASEAN countries and India on the whole has
been depicted. The table shows Singapore as having 42 percent and Indonesia
has 105 percent of trade across border. India has 133 percent. Economic
Corridor based on Multimodal Connectivity such as Mekong –India Economic
Corridor are promoted and designed to connect Indian coast with the
unexplored Southeast Asian coast at shorter time and lower cost.
Companies in India and ASEAN
Table - 2.14: Indian Companies in ASEAN and ASEAN Companies in India
INDIAN COMPANIES IN ASEAN ASEAN COMPANIES IN INDIA

Reliance group IJM (INDIA) Infrastructure limited
Avantha Group Air Asia Group Bhd
Larsen & Toubro UEM India Pvt Limited
BHEL Scomi International Pvt. Limited
IOC Khazanah India Advisors Pvt. Limited
Tata Motors Bank Internasional Indonesia
Mahindra Krung Thai Bank Public Company Limited
TCS Thai Airways International
Biocon Delta India Electronics Private Limited
OVL Ascendas India
Wipro Hyflux
Indo Rama Meinhardt Group
Aditya Birla Group Singapore Airlines Limited
GMR DBS Bank
Punj Lloyd Raffles Education
Major Indian Banks Stamford Tyres
Manipal University Sembcorp Industries
HCL Technologies Biometric marketing
Dr.Reddy Reckitt Benckiser
Ranbaxy Dal Singapore Investment
Infosys Barclays Bank
Mphases Surya Abha Investment
NIIT IP holding Asia Singapore
StridesAcrolab Mudajaye Corporation
Source: Department of commerce, Government of India. Compiled from ASEAN INDIA Business
Forum 2015.http://articles.economictimes.comindiatimes.com/2014-07-24/news/519824531india-
asean-trade-asean-countries-crore
75

Table 2.14.1 : Major Indian Companies in ASEAN
Indian Multi National Enterprises Operating in Southeast

Asian Nations
Reddy’s Lab, Ranbaxy, Tata Steel Cambodia
Jindal Steel, Crompton Greaves, Punj Lloyd, Tata Steel Indonesia
Reliance Industries, Tata Steel, Reddy’s Lab, Ranbaxy, GMR Malaysia
Infrastructure, Punj Lloyd, Tata Steel, Reliance
Tata Steel, Reddy’s Lab, Ranbaxy Myanmar
NASSCOM, GMR Infrastructure, Tata Steel Philippines
Reddy’s Lab, Ranbaxy, Tata Steel, Infosys, Wipro, BSNL, Singapore
Kirloskar, Bharti-Televenture, Glaxo, NASSCOM, Punj Lloyd,
Sun Pharma, Tata Steel, Reliance
Aditya Birla Group, Ballarpur Industries, Baroda Rayon Group, Thailand
Usha Martin Industries, Ranbaxy Laboratories, Lupin
Laboratories, Bharat Overseas Bank, Indo-Rama Groups, Punj
Lloyd, Tata Steel
Essar Steel, ONGC, Punj Lloyd (Petro-Vietnam), Sun Pharma, Vietnam
Tata Steel, Reliance
Tata Steel Laos PDR
Source : Compiled from Institute of Strategic and International Studies, Malaysia
ASEAN – India economic relation provides a framework for

strengthening the regional integration. The economic prosperity depends on the
economic stability, competitiveness, growth and integration in the region, the
volume of trade and investment which led to stronger bond and establishment of
business units in the respective countries. Some Indian establishments are found
in ASEAN countries and vice versa, forming the base for economic
cooperation.
Table: 2.14 and 2.14.1 presents the Indian companies in ASEAN and
ASEAN companies in India. These companies also form a base for ASEAN
Economic cooperation. The major companies in ASEAN are the Reliance,
Avantha, Larsen and Toubro, BHEL and TCS. The Major Indian Banks also
play a vital role in the group of Indian companies in the ASEAN. The ASEAN
companies in India include IJM Infrastructural company, Air Asia, Ascendas,
DBS bank which are world renowned. Both the group of companies from India
76

to ASEAN and from ASEAN to India plays a vital role in trade and strategic
relationship between the countries.
Enhancing bilateral and regional trade relation with rapidly growing

region would be India’s future regional trade strategy. The ASEAN region, with
rising consumption level, young workforce, potentially strong manufacturing
sectors and rich natural resources offers significant opportunities for trade in
goods and services, investment and project exports. The Complementary trade
that exists between ASEAN and India can be enhanced only when the
perception gaps, ideological and informational blinders are removed .30
References
1. Choudhary, Sarika. (2013). India and ASEAN Trade: an Overview. International
Journal of Social Science & Interdisciplinary Research. 2(2),pp.82. retrieved on
January . 30 th 2017 from http://www.indianresearchjournal.com
2. Retrieved on December 5th 2016 from http: //www.mea.gov.in/press-
release.htm?dtl/27970/celebrating_25_yrs_of_the_ASEAN_India_Dailogue_partner
ship
3. Plummer, Michael G. (2009). ASEAN Economic Integration trade, Foreign Direct
Investment and Finance. Advanced Research in Asian Economic Studies. p.1.
Singapore: World Scientific Publishing Co. p.1.
4. ibid. P.13.
5. ibid. p. 45.
6. ibid. p. 56.
7. Mathur, Vibha. (2012). Foreign Trade, Export-Import policy and Regional Trade
Agreements of India. New Delhi: New Century Publications.p.1.
8. Ibid. p .1.
9. Ibid . p.18.
10. Ibid. p.19.
11. Ibid. p.19.
12. Ibid. pp. 55-56.
13. Ibid. pp.55-56.
14. Pushpanathan.S. (2012). ASEAN: Readiness in achieving the EC2015:Prospects
and Challenges. In Sanchita Basu Das. (ed.). Achieving the ASEAN Economic
Community 2015 Challenges for member Countries and Business. Singapore:
Institute of Southeast Asian Studies.(ISEAS). P.10.
15. Retrieved on 18th jan 2017 dgft.gov.in / exim / 2000 / FTPstatement2015. pdf .
16. Pushpanathan . S. (2012). ASEAN: Readiness in achieving the AEC2015: Prospects
and Challenges. In Sanchita Basu Das.(ed.). Achieving the ASEAN Economic
Institute of Southeast Asian Studies.(ISEAS).p15.
17. Retrieved on 21st dec 2016. https://www.google.co.in/webhp?sourceid=chrome-
instant&ion=1&espv=2&ie=UTF-8#q=India+Regional+Trade+Agreement.
77

18. Nagashree.S.N. (2011). ASEAN- India Economic Relations: Current status an

future Prospects. In P.Arunachalam (ed.). India –ASEAN Free Trade Agreement:
Challenges and Opportunities. New Delhi: Serials Publications. P143.
19. Retrieved on January, 25th 2017 from www.indiantradeportal.in/vs.jsp?lang
=O&id=0 25857.
20. Opcit.
21. Pushpanathan . S. (2012). ASEAN: Readiness in achieving the AEC2015: Prospects
and Challenges. In Sanchita Basu Das.(ed.). Achieving the ASEAN Economic
Institute of Southeast Asian Studies.(ISEAS).p15
22. Retrieved on November 20th 2016. www.dip.nic.in/English/policies/FDI_
circular_2016.pdf.
23. Retrieved on 10th September 2016. logs.wsj.com/indiarealtime/2016/06/23/foreign-
direct-investment-into-india-jumps-26-u-n-says/.
24. Retrieved on February 4th 2017 from http://study.com/academy/lesson/what-is-
foreign-direct-investment-advantages-disadvantages.html
25. Retrieved on February 4th 2017 from www.ibef.org/economy/foreigndirect
investment.aspx.
26. Retrieved on February 9th 2017 from http://www.dip.nic.in/English/policies/fdi-
circular_2016pdf.
27. Retrieved on September 10th 2016. logs.wsj.com/indiarealtime/2016/06/23/foreign-
direct-investment-into-india-jumps-26-u-n-says.
28. Retrieved on January 24th 2017 from http://business.mapsofindia.com/fdi-
india/#sthash.L4Q7blzb.dpuf.
29. Ibid.
30. Retrieved September, 10th 2016 logs.wsj.com/indiarealtime/2016/06/23/foreign-
direct-investment-into-india-jumps-26-u-n-says/
78

Connectivity between India and ASEAN: Moving
Forward Commerce and Economic Co‐operation
The Indian Ocean in recent years has come to occupy the centre stage in
global affairs. This is partly due to the recent history of Asian nations, their rise
at the international level and the importance of that has now come to be
attached to sea lanes of communications, especially in the light of the
“Maritime Silk Route”. But strangely enough, Indian Ocean studies still
remains to odds because of disconnect between the past and the present. The
rise of European trade and its dominance of the Indian Ocean since the
sixteenth century resulted in the ocean resembling the Mediterranean Sea. This
was so for between the fifteenth and sixteenth centuries. The Mediterranean Sea
was a hotly contested area by European nations for naval supremacy. However,
during the same time when the European waters were seen as a conflict zone,
the Indian Ocean was on an altogether different plane.
The advent of European colonialism in the sixteenth century, the historical

linkages had got almost frozen for the next four centuries. The contacts were
revived at the beginning of the twentieth century during the common struggle
for freedom from colonialism. India's first Prime Minister Jawaharlal Nehru
believed in Asian solidarity and unity and initiated efforts in uniting Asians.
Nehru first attempted to build a regional identity that would bind the new and
emerging states of India and Southeast Asia, that vision came close to fruition.
This however was nearly wrecked by geo-political realities created by Cold
War considerations.
India’s Position in the Southeast Asia world

The spread of Indian culture to distant parts of Central Asia, China, Japan
and especially Southeast Asia, is centrally one of the greatest achievements of
Indian History. From the first century, India strongly influenced Southeast Asia
countries. Trade routes linked India with Southern Burma, Central and Southern
Siam, lower Cambodia and Southern Vietnam. Indian Hindu/ Buddhist
influence brought a certain level of cultural unity to the various countries of the
region through direct contact as well as through sacred texts and Indian
literature such as the Ramayana and the Mahabharata epics. In the fifth and
thirteen century, Southeast Asia had very powerful Indian colonial empires and
79

had become extremely active in Buddhist architectural and artistic creation. The
cultural link between Southeast Asia and the Indian subcontinent is the spread
of ancient Indian Vedic / Hindu and Buddhist culture and philosophy Myanmar,
Thailand, Indonesia, Laos PDR and Cambodia. 1
India’s geography, population, educated middle class, industrial base,

military strength, science and technology capability cultural relations with
Southeast Asia and presence of Diasporas are factors that are in India’s favour.
The political, commercial and strategic interaction of the Southeast Asian
Region from the 1990s ushered in a new trend. In the new millennium, India is
going to play a prominent and vital role in Southern Asia.
India’s Position in the World

India gradually reduced its profile in the Southeast Asian affairs after the
1955 Bandung Conference. Indonesia, Malaysia, the Philippines, Singapore,
and Thailand meanwhile established the ASEAN (Association of Southeast
Asian Nations) in August 1967. But India's relations with the ASEAN
continued to remain at a low point during the 1960s and 1970s owing to the
tensions of the Cold War.2 The prospects for closer relationship between India
and the ASEAN brightened with the first meeting at the official level between
India and the ASEAN was held in May 1980. However, the newly established
relationship proved to be short-lived. The July 1980 decision of India to
recognise the Heng Samrin regime in Cambodia was severely criticised by the
ASEAN and relations were almost frozen during the 1980s. Thus, the India-
ASEAN relationship remained hostage to the global ideological conflict during
the Cold War.
The end of the Cold War fundamentally transformed the mutual

perceptions of India and the ASEAN. With India adopting its 'Look East' policy
in 1991, the previously neglected eastern neighbourhood started receiving due
attention from Indian policy makers.3 This policy coincided with the efforts of
the ASEAN member states to diversify their ties that went on to include India.
Of the many factors that facilitated such an initiative by the two sides included
the economic hardships of India that rose from the fall of the Soviet Union. This
resulted in economic reforms being undertaken by India in 1991. At the same
time India’s early assessment of the potential of the Southeast Asian countries
was proved to be faulty, since ASEAN nations had proved to be key drivers of
global economy. Regional cooperation is important for economic growth and
80

degree of liberalisation, is related to enhancing production efficiency and

minimizing transaction costs.4
Realising that it had missed some openings in the past, India was now
keen to cultivate ties with the ASEAN region that had already become a critical
mass of global economics. Thus in March 1993, India was accorded sectoral
dialogue status within ASEAN which allowed participation in exchanges to
certain specified fields such as trade, investment and tourism. In 1995, India
was made a full dialogue partner of ASEAN and made its maiden appearance in
the Jakarta ASEAN Regional Forum (ARF) and the Post-Ministerial
Conference (PMC) meetings. While then Indian Prime Minister P.V. Narasimha
Rao could be credited for India’s readiness to embark on a strategic initiative to
reestablish closer economic ties with ASEAN, it was the gradual convergence
of interests, both in security and economics that facilitated India’s “Look East
Policy”.5 Atal Bihari Vijpayee, as the Prime Minister of India too contributed
to India’s relations with the ASEAN countries. He offered a unilateral “Open
Sky Policy”, which would ensure connectivity between the capital of 10
ASEAN countries and metropolitan cities of India. This initiative was a major
step in consolidating India- ASEAN ties. 6
ASEAN’s ability to manage peace and security in Southeast Asia is often

deemed as a key achievement of its 50 years history. This achievement has
helped ASEAN’s role in initiating the establishment of many ASEAN-led
regional institutions in the wider region of Asia Pacific and has spurred
ASEAN’s decision to deepen regional integration and work towards an ASEAN
Community by 2015. The Community that ASEAN has envisioned is founded
on three pillars: the ASEAN Political Security Community (APSC), the
ASEAN Economic Community (AEC) and the ASEAN Socio-Cultural
Community (ASCC). The three-pillared Community would realise ASEAN’s
vision of a region where:
 The people and member states of ASEAN will ‘live in peace with one
another and with the world at large in a just, democratic and
harmonious environment’ (APSC);
 There will be ‘a single market and production base’ that is ‘more
dynamic and competitive’ (AEC); and
81

 There will exist an ‘ASEAN Community that is people - centered and

socially responsible’ through ‘forging a common identity and building
a caring and sharing society which is inclusive and harmonious’
(ASCC).7
These overarching goals of the ASEAN Community catapulted the

regional organisation into global prominence. Richard Stubbs says that the
ASEAN leadership is a process wherein [ASEAN], as ‘a state or group of states
in the international system in cooperation with follower states,’ is able to: 8
1. facilitate problem solving of an issue area;
2. lead the establishment of infrastructure for regional consultation; and
3. influence and / or shape the way issues are discussed
The three elements outlined by Stubbs make for a good take-off point in
unpacking the notion of centrality for this paper, but with the use of a different
conceptual framework. The analysis here moves from theories of leadership to
network analysis to explore ASEAN’s central role as a function of its structural
position in various networks. It draws on the concepts developed by scholars of
social network analysis (SNA) to examine the extent to which ASEAN is able
to show ‘leadership’ through its ability to influence ‘followers’ in achieving a
common purpose, gain access to resources and information, serve as a channel
for transmission of beliefs and norms, and in the process, create structures that
can ‘define, enable or restrict behaviour.9
Demography of ASEAN and India

The demography of any country depends on the population, income level,
educational level status, occupation, religion, birthrate and death rate, the
average size of the family and gross domestic product. Understanding the
demography is very essential for success of the economy. It becomes very
essential to know the neighbours with whom economic cooperation is sought.10
The table 3.1 represents the general profile of the ASEAN countries and
their dialogue partners. It is evident that on comparison with ASEAN countries,
India is the second largest populated country in the world next to China. India
has a population of 1,295,292 million people as on October 2016 occupying the
land area of 29,73,190 Kms2 which is about 31.43 percent of total land area of
ASEAN, with 7.9 percent as the Gross Domestic product. Among the ASEAN
countries, Indonesia has the largest population with 254,455 millions of people,
82

land area 18, 11,570 Kms2 and GDP of 6.10 percent. The exchange rate of
Indian rupee when compared with Brunei and Singapore is as low as .0209213
paisa against their respective dollars. In comparison to Philippines peso,
Thailand Bhatt and Malaysian ringgits the exchange rate of the Indian Rupee is
moderate and ranges between 0.5 to 0.7 paise. The value of the Indian rupees is
high when compared to the rest of the ASEAN member countries. The table
shows that India’s growing profile has drawn attention of countries in Southeast
Asia to foster closer engagement at regional level and multilateral level.
Table - 3.1: General Profile of the ASEAN Countries and their Dialogue Partners
Country Population Land Density Exchange CPI GDP in GDP% Partner

in Million Area Person Rate % Million Growth with India
KM2 per US$ (Export in
Millions)
Sqkm
Brunei 0.417 5.270 12.63 1.267 0.19 17.104 -2.34 9.47

Darussalam
Cambodia 15,328 176520 11.51 4037.500 3.86 16.778 7.07 -
Indonesia 254,455 1811570 7.11 11865.200 4.43 888.538 5.02 12,249
Laos PDR 6,689 230800 34.50 8048.960 4.14 11749 7.56 -
Malaysia 29,202 328550 11.25 3.273 3.14 326933 6.02 -
Myanmar 53,437 653080 12.22 984.346 4.45 66478 8.70 638
Philippines 99,139 298170 3.00 44.395 4.17 284582 6.10 -
Singapore 5,507 707 0.128 1.267 1.02 307872 2.92 -
Thailand 67,726 310890 4.59 32.480 1.90 404824 0.87 -
Vietnam 92,423 310070 3.35 21148.00 4.90 186205 5.98 -
India 1,295,292 2973190 2.29 61.030 6.35 2054.941 7.29 -
Source: unctadstat.unctod.org/countryprofile/general/en-GB/365/index.html. Note: UNCTAD-

United Nation Conference on Trade and Development. CPI-Consumer Price Index , GDP- Gross
Domestic Product.
83

Chart – 3.1: Total Population of India and ASEAN in Millions
Total Population in Million
Asean
India
Chart – 3.2: Land Area occupied by the ASEAN Countries
Land Area Km2
3500000
3000000
2500000
2000000
1500000
1000000
500000 Land Area Km2
0
Chart – 3.3: Density per Person by the ASEAN Countries
Density person per Sqkm
40
35
30
25
20
15
10
5
0
84

Chart – 3.4: Population and Area Sq Km of ASEAN Countries
3500
3000
2500
2000
1500
1000
Population in Million
500
0 Area Sqkm
Chart – 3.5: Gross Domestic Product earned by India and ASEAN Countries
GDP in Million
450000
400000
350000
300000
250000
200000
150000
100000
50000 GDP in Million
0
Table 3.2.depicts the Population, Land Area, Gross National Income and
Per Capita Income. Most of the ASEAN countries are developing countries
except for Brunei and Singapore which are categorised as advanced nations.
Their Gross National Income in US$ 15.1 billion for Brunei and that of
Singapore is US$ 301.6 billion. The changing centre of global economic gravity
has made ASEAN Countries to acquire a new status of Industrialised countries
and India is not far behind. This transition has taken place from agricultural
economy to newly industrialised economy. India’s natural environment, nature
85

of industries, expertise, demands and supply conditions have made a positive

environment for ASEAN. India has a population of 1295 million and a land area
of 3287 Square kilometer. On comparing the purchasing power parity, it is
highest for India. The per capita income of Singapore is highest followed by
Brunei and Malaysia.
Table - 3.2: Population, Area, and ASEAN Economies

POPULATION AREA Gross National Per Capita Income
COUNTRY 2014 Income $ Billions (2014)
(2014)
MILLION Sq Km CER PPP CER P PP
Brunei 0.4 5.8 15.1 29.3 37320 72190
Darussalam
Cambodia 15.3 181.0 15.6 47.2 1020 3080
Indonesia 254.5 1910.9 923.7 2592.3 3630 10190
Laos PDR 6.7 236.8 11.1 33.8 1660 5060
Malaysia 29.9 330.8 332.5 740.8 11120 24770
Myanmar 53.4 676.6 68.1 204.3e 1270 -

Philippines 99.1 300.0 347.5 837.6 3500 8450
Singapore 5.5 0.7 301.6 439.0 55150 80270
Thailand 67.7 513.1 391.7 1006.9 5780 14870
Vietnam 90.7 331.0 171.9 485.2 1890 5350
India 1295.3 3287.3 2028 7292.8 1570 5630
Total ASEAN 623.21 4486.7 2578.8 6416.4 - -
(8.6%) (3.3%) (3.3%) (5.9%)
Source : http://www.assocham.org/upload/docs/ASEAN- STUDY.pdf ,PPP- Purchashing Power
Parity, CER- Current Exchange Rate, e- Estimate; Th- Thousand figures within parenthesis indicate
share of ASEAN in relevant global totals.
Chart – 3.6: Population of India and ASEAN Countries
Population in Million
1400000
1200000
1000000
800000
600000
400000
200000 Population in Million
0
86

Chart - 3.7: Density of person per Sq Km of India – ASEAN Countries
Brunei Darussalam
Cambodia
Indonesia
Laos
Malayasia
Myanmar
Phillipines
Chart – 3.8: Total Population ASEAN and India
Total Population in Million
Asean
India
Chart - 3.9: India – ASEAN Population and Land Area
3500
3000
2500
2000
1500
1000
500 Population in Million
0
Area Sqkm
87

Chart - 3.10: Gross Domestic Product India – ASEAN
GDP in Million
450000
400000
350000
300000
250000
200000
150000
100000
50000 GDP in Million
0
ASEAN - India Connectivity

Connectivity is the single most crucial factor that facilitates trade flow,
people to people contact and integration of regional economies. Better
connectivity will unleash opportunities generated by the dynamic growth centre
in Asia, and it is in this regard that India, in the past two decades, has been
focusing on connectivity. On the domestic front the Golden Quadrilateral, a
highway network connecting many of the major centers of India is one such
initiative. At the same time connectivity with neighboring nations and regions
too has been another areas of interest for India.11
India’s Economic link and Connectivity with ASEAN

The strong growth of the Indian economy has made an impact on the
Asian economy. India’s trade is expected to grow manifold due to the free trade
agreement. Accompanying this there would be an increase in demand of both
national and International infrastructure, production and consumption and
International trade. Failure to respond to these demands would hamper India’s
trade and growth. ASEAN emphasis on connectivity with neighbouring
countries including China and India as an emerging super powers in the region
would unlock the tremendous potential of region by removing constraints and
bottleneck growth.12
88

MAP - ASEAN – INDIA CONNECTIVITY
Economic Corridor is an infrastructure that helps facilitate economic

activities, it provides connection between gateways, economic nodes and hubs.
Economic approach emphasises on integration of infrastructure improvement
along with economic opportunities such as trade and investment, and efforts to
harness social and other outcomes of connectivity. The Economic Corridors
have gained momentum in Asia with Asian Development Banks, Greater
Mekong Sub region and Central Asia Regional Economic Cooperation.13
89

Connectivity elements are a kin to systems hardware and software;

hardware constitute roads, bridges and electrical grids. Software of the system
are custom codes, transit regulation, training and capacity building that
facilitates passage of goods, ideas technology and individuals back and forth
between nations.14
India’s regional integration with southeast Asia has two major paths: 1)
India - ASEAN Transit Agreement. 2) India – ASEAN Trilateral Highway
(TH), Mekong India Economic Corridor (MIEC). The former leads to achieving
paperless trade; the latter helps in facilitating seamless trade. India – ASEAN
connectivity evolve around two structures, one national connectivity and the
other regional connectivity. Economic corridors play a key role in integrating
economies across regions which is essential for the development of a region, by
bridging infrastructure gaps and promoting pro - poor socio economic
development. Corridors gained importance in the 1990’s when China vertically
integrated supply chain and a large share of international trade in intermediate
goods and openness to FDI. If India aims to become the power house through
‘Make in India’, the country needs to invest in transport and communication
infrastructure for just - in - time delivery and opportunities in vertically
integrated chain supply.15
Chart – 3.11: ASEAN before moving to Economic Corridor underwent

various stages of development
Catalyst:
Trade
Transport Trade Economic facilitation,
Corridor Corridor Corridor Logistic
services
Source: Compiled from ASEAN – India Development and Cooperation Report 2015.
India - ASEAN undertook several connectivity projects physical or

otherwise to facilitate the passage of goods and services. Both India and
ASEAN before moving to Economic Corridor have to pass through Trade
Corridor. The transformation of Transport Corridor to Economic Corridor
depends on the volume, type and pattern of corridor trade and how it
encourages certain level of development in the surrounding corridors. Building
corridor nodes, gateways and linking the nodes along the corridors would help
the region in moving towards economic corridor.16 The areas of priority and
90

projects that have been undertaken are a result of the ASEAN–India

Connectivity. The projects that have been undertaken, if realized, would
contribute immensely to India–ASEAN linkages.17
The two emerging trends for the physical connectivity architecture

between India and ASEAN are national connectivity initiatives, like Delhi –
Mumbai –Industrial Corridor; and India – Myanmar – Thailand Trilateral
Highways which lies along the Asian Highway route; the Kaladan Multi –
Model Transport project which are the examples of surface connectivity
network. 18
Major Connectivity between India and ASEAN

Apart from those that have been mentioned the other significant
connectivity networks are the Chennai–Dawei–Saigon Port Corridor, which has
the potential to be a very successful economic corridor. Turning potential into
reality, however, would mean lifting up numerous uncertainties. Thailand has
long wished to build a large deep sea port on the Andaman Sea to fulfill its
“Look East” policy and receive liquid and dry bulk cargoes. Such interest
explains the plans to develop Pak Bara in the south of Thailand as a deep sea
port on the Andaman Sea linking it to the Gulf of Thailand through a land
bridge. Pak Bara development, however, has faced drawbacks: shallow water in
the Andaman Sea, environmental issues, and no immediate hinterland.
Dawei Port is located in South Myanmar but so far it is Thailand that has
been behind its development. Dawei is only 300 kilometres away from Bangkok
and could therefore provide an interesting option for trade generated from the
Bangkok area as well as the eastern seaboard area (imports and exports). The
trade would probably—at least in the beginning—be limited to South Asia.
Thailand’s trade with the rest of Asia, Europe, and the Middle East would
continue to be by sea. The situation would be different if the planned industrial
park, originally sponsored by Japan, materialized in Dawei. Then production
units could be fully integrated into a complex system of supply chains running
from Bangalore to Chennai in India and Bangkok, Laem Chabang, and the
eastern seaboard in Thailand. Saigon Port is mentioned as the end of the
corridor gateway to keep consistency with other corridors. Trade from Vietnam
to South Asia would in the future continue to be by sea, but a vibrant Dawei
Port and fast land connections may present advantages for industries located in
the Ho Chi Minh City area.19
91

Other projects like the Kolkata–Hai Phong corridors too are important.
However this project as of now is severely limited; expensive links in this
corridor are missing. This does not mean that connectivity would not be
established once Myanmar and the Laos PDR complete their missing links.20
The Kolkata–East–West Economic Corridor project has not been seen too
enthusiastically by many because of relatively low expected economic
prospects. Another network, though limited in its scope is the Kaladan Project
connecting Sittwe Port in Myanmar with State of Mizoram in India at a cost of
US$ 234 million. This project is intended to provide easy sea access to
Northeast Indian states, but does not constitute a true South Asia–Southeast
Asia route and does not fulfill the original intention of the Look East policy.21
However for an effective and efficient physical connectivity between

South and Southeast Asia a regional perspective in developing transport
infrastructure projects is required. The diverse geography and range of
applicable transport modes underscore the need for multimodal planning in
constructing roads, railways, seaports, inland waterways, and airports that
satisfy the needs of users, including transport service providers. Thus the need
of the hour is in addressing the missing links and bottlenecks in the
transportation networks. Many of the key physical barriers or hindrances are
located in Myanmar, which is the sole land bridge between South and Southeast
Asia. The others, though not as significant as Myanmar, are those that lie in
Bangladesh, Cambodia, the Laos PDR and Vietnam.22
India –Myanmar – Thailand – Trilateral High way is a trans - border

transportation network being financed by the governments of India, Myanmar
and Thailand. The highway links Moreh in India with Mac sot in Thailand
through Bagan in Myanmar. The alignment of the route begins from Moreh –
Tamu – kalewa – Targi – Monywa – Mandalay – Nay Pyi taw – Yangon –
Thaton – Hypaan – Kawkareih – Myawaddy – Macsot (Thailand). The whole
project is divided in to phases and Phase I is completed. India had responsibility
of laying 78 kilometres missing link and 58 kilometres upgradation. Thailand
would take up upgradation of 136 kilometres and 62 kilometres sectors of Phase
I and another 100 kilometres in Phase II. Myanmar would take up intermediary
approach to road construction and rehabilitation of weak bridges. Tamu –
Kalewa friendship road upgrading is taken up by Indian Government under
Border Road Organisation, about 132 kilometres have been completed. Lacks of
92

support from the government are some of the reasons for delay in execution of
the project.23
MAP – TRILATERAL HIGHWAY PROJECT
Kaladhan Multimodal Transit Transport Project (KMTTP)

The project foresees connectivity between Indian ports and the Sittwe port
in Myanmar, both via land and waterways. KMTTP provides an alternate route
for transportation of goods and services to northeast India through Myanmar.
This project comprises of two major components a) Development of ports and
inland water transport development between Sittwe and Kaletwa in Myanmar
along the Kaladan river; b) building highways 129 kilometres from Kaletwa to
the India – Myanmar border in Mizoram. The project also includes construction
of integrated ports and inland water transport by developing navigational
93

channel along the river Kaladan from Sittwe to Paletwa (158 kilometres) and
Construction of barges with 300 tonnes capacity and construction of highway
transshipment terminal at Paletwa.
MAP – KALADAN MULTI-MODAL TRANSIT TRANSPORT FACILITY
The project is under progress and on India’s side 100 kilometres new road
from lawngtlai on NH54 to India –Myanmar border and an integrated port –
cum - jetty at Sittwe is substantially completed and inland water transport at
paletwa is in completion stage.24
Delhi – Hanoi – Railway Link

Integrating India with ASEAN will promote bulk transnational movement
amongst the neighbouring countries. This involve linking India’s Manipur with
India’s main railway corridor, Imphal with Kalay in Myanmar about (212
kilometres), Thanbyuzayat with three pagoda pass in Thailand, reestablishing
and renovating railways network tracks in the region and standardising the
railway track in Myanmar and parts of northeast India. An Indian railway is
actively engaged in harmonising and construction of rail tracks in the northeast.
Project connectivity is extended to the capital of Sikkim, Megalaya, Mizoram,
Manipur and Nagaland.
In 2014 the first train from Guwahati to Tezpur has already commenced
functioning. The railway track between Harmute - Itanagar – Dudhia –
Mendipather has been completed. Hanaga capital of Arunachal Pradesh has
94

now been connected to New Delhi. The line along the north bank of the
Bhramaputra has now been converted to broad guage covering the area of
Rangiya – Murkongselek and Balipara – Bhalukpong (510 kilometres).
Delhi Hanoi proposes two routes; 1) Hanoi via Myanmar - Thailand and
Cambodia. 2) Bangkok via Ye and then to Hanoi through Thailand and Laos
PDR covering 238 kilometres. Both the routes proposed connect from Silchar
India to Thanbyuzayat. Although rail services are there in these routes there are
still about 238 kilometres missing links which have to be built in Myanmar to
have Delhi – Hanoi railways in operation.
On India’s side the construction of railway tracks are in progress from

Jiribam junction, Assam via Imphal to Moreh. Investment is a big challenge that
India is facing: out of 180 kilometres only 98 kilometres are completed. Moreh
via Imphal would be the link to Myanmar and Thailand it depends on how fast
the railway system is developed. On completion of the project there could be
possibility to have India – Myanmar – Thailand – Malaysia – Singapore rail
link and India – Myanmar – Thailand – Hanoi link. The Singapore Kumming
Rail link passes through Myanmar, Cambodia, Vietnam and Malaysia. This
project has some missing links which need to be connected to Vientiane in Laos
PDR. The line would extend from Vientiane through Thailand and Malaysia to
Singapore. This being the mega project of ASEAN which covers about 3900
km it would be worth linking Singapore to Myanmar which would facilitate free
flow of goods and passengers by railways between India and Southeast.25
Mekong - India Economic Corridor

The Corridor connects Ho Chi Minh with Dawei via Bangkok – Phnom
Penh to Chennai in India. The MIEC conceptualises the region around with
main highway connecting Vungtau in Vietnam to Dawei Myanmar passing
through Ho Chi Minh city. The high - way passes through three border Moc Bai
Bavet (Cambodia – Vietnam); Poipet – Aranyprahet (Cambodia – Thailand);
Sai Yok Bong Tee (Thailand – Myanmar).There is a road from Vungtau to
Bong Tee on Thailand – Myanmar and after which there is no path to Dawei.
When the path would be laid several towns such as Bein Hoa, Battam bang,
Siso phon, Chachoengsao, Prachinburi and Kanchanaburi would be connected,
when the project gets completed. It is expected to increase trade with India by
reducing travelling distance between India and MIEC countries. The project
95

emphasises on expanding the manufacturing base and trade with the rest of the
world particularly India. BIMSTEC has the potential to facilitate northeast
region and complements and supplements India’s engagement with ASEAN.26
Port Connectivity
Port and shipping are strong catalyst of ASEAN and India link by both
land and sea and 90 percent of bilateral trade is carried on by sea. Stronger
maritime is essential to facilitate production network, trade and employment.
ASEAN and India have a long coastline with many ports. Out of top twenty five
ports, seven ports are from ASEAN and one port from India.
MAP – PORT CONNECTIVITY IN INDIA
96

ASEAN – India Maritime Connectivity Projects focused on connecting

Myanmar, Thailand and Vietnam to Indian ports with regular shipping
service;27
 joining ASEAN RoRo and cruise network and promoting tourism;
 building Ennore and Chennai port as gateway ports;
 Cooperation for improving efficiency of ports ;
 ASEAN FDI in Indian ports and shipping sector;
 Development of assistance to CLMV ports and shipping sectors;
 Joint training of human resources;
 Connecting ASEAN to Single Shipping Market (ASSM) and signing
Maritime Regional Agreements (MRA’s);
 Signing ASEAN India Maritime Transport Agreement (AIMTA).
Marine Connectivity
The performance indicators of the connectivity by sea are given in table:
3.3 which depicts the liner shipping connectivity Index .well connected ports
along with efficiency of shipping services is the major catalyst to greater
maritime connectivity between ASEAN and India. The cargo is shipped through
feeder routes to reach ports in Cambodia, Indonesia, Myanmar, Thailand and
Vietnam. The table presents the liner shipping connectivity index to ASEAN
countries.
On comparison it is found that Myanmar has least liner shipping

connectivity index for the year 2006 and Singapore with highest liner shipping
connectivity as the Singapore ports serve as a base for maximum shipping fleet
and a stopover when compared to India. India’s ability to capitalize on
geographical proximity to ASEAN and its historical and socio cultural linkages
with the Southeast Asian region largely due to its slow pace of reforms to
liberalise the Indian Economy.
97

MAP – SEA CONNECTIVITY IN INDIA
98

MAP – MAJOR AIRPORTS AND SEAPORTS IN INDIA
99

Table – 3.3: Liner Shipping Connectivity Index (LSCI), 2006, 2011 & 2016
Source : UNCTAD Stat, http://unctadstat.unctad.org/wds/Table Viewer /table view.aspx?

Reported=92
100

Table - 3.4: International Logistic Performance Index Scores and Ranking of

ASEAN Member Nations
COUNTRY / OVER CUSTOMS INFRA INTER LOGISTICS TRACKING TIME
ASEAN ALL STRUCTURE NATIONAL QUALITY AND LINESS
MEMBER SHIPMENTS AND TRACKING
NATION COMPETENCE
Brunei - - - - - - -
Darussalam
Cambodia 2.74 2.67 2.58 2.83 2.67 2.92 2.75
(83) (71) (79) (78) (89) (71) (181).
Indonesia 3.08 2.87 2.92 2.87 3.21 3.11 3.53
(53) (55) (56) (74) (41) (58) (50)
Laos PDR 2.39 2.45 2.21 2.50 2.31 2.20 2.65
( 131) (100) (128) (120) (129) (146) (137)
Malaysia 3.59 3.37 3.56 3.64 3.47 3.58 3.92
(25) (27) (26) (10) (32) (23) (31)
Myanmar 2.25 1.97 2.14 2.14 2.07 2.36 2.83
(145) (150) (137) (151) (156) (130) (117)
Philippines 3.00 3.00 2.60 3.33 2.93 3.00 3.07
(57) (47) (75) (35) (61) (64) (90)
Singapore 4.00 4.01 4.28 3.70 3.97 3.90 4.25
(5) (3) (2) (6) (8) (11) (9)
Thailand 3.43 3.21 3.40 3.30 3.29 3.45 3.96
(35) (36) (30) (39) (38) (33) (29)
Vietnam 3.15 2.86 3.34 2.93 3.11 3.15 3.55
(48) (56) (34) (70) (48) (54) (47)
Non ASEAN member Nation
India 3.08 2.72 2.88 3.20 3.03 3.11 3.51
(54) (65) (58) (44) (52) (57) (51)
Source: Connecting to compete 2014: Trade logistics in the Global Economy, The logistics
performance Index & its indicators, The World Bank,
http://www.worldbank.org/content/dam/worldbank/document/tade/LP12014.pdf.
Note: Figures within parenthesis indicate country rank out of 160 countries ranked
The table 3.4 depicts the ranking pertaining to customs, infrastructure,

international shipments, logistic quality, competence, tracking and timeliness.
ASEAN members ranking shows that Singapore ranks number two for
infrastructure, rank three for customs, Singapore is ranked fifth overall. India
occupies overall 54th rank, and ranks for other criteria ranging from 44th rank for
International shipment and 65th rank for customs. Performance and efficiency of
ports and shipping positively contribute to the growth of trade. With rise in
competition, performance of Indian ports has to be improved further and India
should draw lessons from Southeast Asian countries. India has to be serious
101

about implementing its reforms and the process of governance in India seems to
be complicated despite adopting new technologies in international ship and Port
security code.
The emerging e-commerce market in India also offers investment

opportunities in logistics sector. Some of the ASEAN countries which are world
class logistic providers such as Singapore can be tapped. As market expands,
joint venture prospects in logistics, retailing and electronic transaction between
India and ASEAN also grow high. India ASEAN service trade agreement is
likely to play much needed facilitating role in building networks and
innovations between ASEAN and India.
Table - 3.5: Share of Indian Flag / Foreign Vessels in the

Overseas Cargo Traffic Handled at Airport
Year Total Percentage Percentage of Cargo Carried By
Total Overseas Traffic Indian Flag Vessels Foreign Flag Vessels
(Million Tonnes)
1990-91 112.22 35.60 64.40
2001-02 275.83 16.70 83.30
2002-03 303.03 14.89 85.11
2003-04 346.32 12.8 87.2
2004-05 400.58 13.7 86.3
2005-06 451.39 13.8 86.2
2006-07 508.91 13.2 86.8
2007-08 596.22 9.0 91.0
2008-09 611.04 8.1 91.9
2009-10 692.00 8.1 91.9
2010-11 732.29 7.9 92.1
2011-12 754.87 10.9 89.1
2012-13 771.76 9.1 90.9
2013-14 811.11 8.5 91.5
Source: Transport Research wing, M/O Road Transport & Highways.
http://mospi.nic.in/mospi_new/upload/syb2015/ch22.html
Table 3.5 presents the share of Indian flag /foreign vessels in the overseas
cargo traffic handled at airports which was 112, 22 tonnes during 1990- 1991
and rose to 811.11 tonnes during 2013-2014. The percentage of Indian flag
vessels decreased from 35.60 tonnes to 8.5 tonnes. The foreign flag vessel has
increased from 64.40 tonnes to 91.5 tonnes. India may explore signing ASEAN-
India maritime transport Agreement with ASEAN to become single Port
community and Single shipping market which could be possible only when both
102

India and ASEAN cooperate and communicate and eliminate the barriers
hindering maritime transport and establish regional maritime transport
framework system.
Air Connectivity
MAP – AIR CONNECTIVITY IN INDIA
Connectivity is the main thrust of ‘Act East policy.’ It is the key source to
high- value fragile goods and perishable commodities movements from one
place to another just in time. Air transportation promotes trade and tourism,
generates employment opportunities and increases government revenue. In the
recent years, the potential of air passenger flows between India and Southeast
Asian countries has increased. Liberalising air connectivity especially in air
cargo has helped to unlock the potential of the region by removing constraint
and bottleneck to trade and economic growth.28
103

Chart - 3.12: Trends in GDP and Air Cargo Growth Rates
Source: RBI, AAI and MOCA Analysis
Table - 3.6: Air Traffic handled at All Indian Airport.
YEAR INTER DOMESTIC TOTAL INTER DOMESTIC TOTAL INTER DOMESTIC TOTAL
NATIONAL ACM ACM NATIONAL PAX PAX NATIONAL FREIGHT FREIGHT
ACM (IN NOS) (IN PAX (IN NOS) (IN NOS) FREIGHT (IN MT) (IN MT)
(IN NOS) NOS) (IN NOS) (IN MT)
1995-96 92515 314727 407242 11449756 25563998 37013754 452853 196516 649369
1996-97 94884 324462 419346 12223660 24276108 36499768 479088 202122 681210
1997-98 98226 317531 415757 12782769 23848833 36631602 488175 217405 705580
1998-99 99563 325392 424955 12916788 24072631 36989419 474660 224490 699150
1999-00 99701 368015 467716 13293027 25741521 39034548 531844 265570 797414
2000-01 103211 386575 489786 14009052 28017568 42026620 557772 288373 846145
2001-02 107823 402108 509931 13624712 26358627 39983339 560226 294050 854276
2002-03 116442 444208 560650 14825799 28897525 43723324 646137 333222 979359
2003-04 136193 505196 641389 16641449 32138162 48779611 693223 375080 1068303
2004-05 163274 554323 717597 19424457 39859343 59283800 823608 454864 1278472
2005-06 190876 647341 838217 22367399 50974218 73341617 920149 477153 1397302
2006-07 215569 862024 1077593 25778027 70624999 96403026 1021263 529643 1550906
2007-08 248538 1059091 1307629 29818150 87067597 1.17E+08 1146745 568233 1714978
2008-09 270345 1036187 1306532 31584001 77294731 1.09E+08 1149923 552062 1701985
2009-10 282204 1048688 1330892 34367929 89387504 1.24E+08 1270712 690900 1961612
2010-11 300197 1093565 1393762 37907547 1.06E+08 1.43E+08 1496239 852197 2348436
2011-12 309286 1235360 1544646 40796403 121509019 1.62E+08 1467896 812091 2279987
2012-13 313909 1164902 1478811 43033830 1164907 1.59E+08 1406334 784215 2190549
2013-14 335970 1200645 1536615 46619723 122296319 168916042 1443066 836088 2229154
2014-15 345363 1257658 1603021 50799320 139329838 190129158 1542536 985021 2527557
2015-16 375335 1418244 1793579 54725556 168889900 223615456 1658216 1047675 2705891
The data refers to International aircraft movements, Domestic aircraft movements, Total aircraft
movements, International Passenger, Domestic Passenger, Total Passenger, International freight,
Domestic freight and Total freight traffic during the year. https://data.gov.in/catalog/air-traffic-
handled-all-indian-airports https://www.seair.co.in/indian-export-data.aspx
104

Table 3.6 gives the air traffic handled in all Indian Airports. The air traffic
handled at all Indian Airports has increased the International Aircraft movement
from 92,515 in Nos (Numbers) in the year 1995-96 to 3,75,335 in Nos in
2015-16. The Domestic Aircraft movement from 3,14,727 in 1995-96 has
enhanced to 14,18,244 in 2015-16. This also depicts that the number of
passenger movement has considerably increased both at national and
international level. The growth of foreign tourist arrivals in India did not follow
any consistent pattern this doubled the growth. However number has increased
due to facilities such as visa on arrival and relaxation on levying duties are
made available to the foreign tourists. Similarly some relaxations are also
provided to the domestic tourist such as rebate on air fare on booking in
advance.
Table: 3.7 gives the civil aviation performance in India. The estimates are
compiled from the data furnished on the basis of data furnished by the ministry
of Civil Aviation. It gives vivid details of number of passenger carried, the
kilometer flown and the freight carried in tonnes. The load factor percentage
explains the capacity utilization of the Airlines both in terms of people carried
and freight carried and the revenue generated. How efficiently transport
providers fill seats. The load factor percentage shows as 68.6 percent in 2000-
01 which decreased to 64.7 percent in 2008-09 due to financial crisis. However,
overall load factor shows a positive growth and has increased to 81.2 percent in
2015-16. The freight handled and its available tonnes capacity is underutilized
which is depicted in the table as 4473 tonnes kilometres and weight load factor
as 65.5 percent in 2000-01 which has increased to 2,02,271.5 tonnes kilometres
and load factor of 68.5 percent in the year 2015-16. India needs to utilize its
potential and has to be serious about implementing its reforms which is slow
paced and complicated, unlike China.
The table 3.8 shows the country- wise international passenger flow to and
from India for the year 2014-15 and 2015-2016. Singapore and Thailand show
the highest passenger movement from and to India followed by Malaysia. The
passenger flow seems to be almost balanced and this could have been due to the
location. The overall surplus has declined by approximately 50 percent but there
is positive growth.
105

106

MAP: AIR LINK BETWEEN INDIA AND SOUTHEAST

AND EAST ASIAN COUNTRIES
Note: Drawn based on data provided by various airlines as on January 2016. This is not correct
political map of any country or a region. Maps have ben drawn for pictorial illustration of air routes.
Souce: AIC at RIS.
107

Table – 3.8: ASEAN Country-wise International Passengers carried from India for
the year 2014-15 and 2015-16
(Numbers in’000)
Country Passenger Passenger Surplus/ Passenger Passenger Surplus

from India to India Deficit from India to India /Deficit
2014-15 2014-15 2015-16 2015-16
Malaysia 857,252 889,242 3.73 1,055,586 1,028,777 -2.53
Myanmar NA NA NA NA NA NA
Singapore 1,648,041 1,722,669 4.52 1,652,338 1,705,346 3.2080
Thailand 1,079,827 1,107,204 2.53 1,270,376 1,301,393 2.44
Vietnam 1,650 1,685 2.12 7,536 5,313 -29.49
Total 3,586,770 3,720,800 3.736 3,985,836 4,040,829 1.37
Source: Compiled from DGCA,MoCa. Government of India. Retrieved from
http://www.dgca.gov.in/Report/stat-ind.htm.
Table – 3.8.1: Country-wise International Freight flow in 2014 -15 and 2015- 16
(Tonnes)
Country Freight Freight Surplus/ Freight Freight Surplus/

India From India Deficit India From India Deficit
2014-15 2014-15 2015-16 2015-16
Malaysia 15834.6 19481.9 23.3 13446.6 17107.0 27.22
Singapore 43178.4 47562.1 10.15 5977.3 47807.5 699.81
Thailand 35845.6 27060.7 -24.50 38837.1 24526.5 -36.84
Vietnam 1.0 94.3 9330 2.2 227.0 10181.81
Total
Table – 3.8.2: Country-wise Total International Passengers flow for past five year
(2011-12 to 2015-16)
(Numbers in’000)
Country 2011-12 2012-13 2013-14 2014-15 2015-16

Malaysia 1130997 1226917 1768174 1746494 2084363
Singapore 2858013 3096810 3211329 3370710 3357684
Thailand 2092965 2702829 2213960 2187031 2571769
Vietnam 0 0 0 3335 12849
Phillipines NA 39085 NA NA NA
108

Table – 3.8.3: Country-wise International Freight flow for past five year
(2011-2012 to 2015-16)
(Numbers in’000)
Country 2011-12 2012-13 2013-14 2014-15 2015-16
Malaysia 29833.9 29675 30985.9 35315.5 30553.5
Singapore 82433.7 92736.3 91749.7 90740.4 103880.4
Thailand 54344.1 68681.4 67645.9 62906.3 63363.7
Vietnam 0.00 0.00 0.00 95.4 229.2
Total
Table - 3.8.1 shows the country-wise international freight flow from and
to India. Among Southeast Asian countries, except for Thailand, other countries
show freight surplus. The deficit was result of levying of high custom duties or
lack of facilities, or other means of transport would have been cheaper.
Tables 3.8.2 and 3.8.3 present the consolidated data of the passenger flow
and freight flow from ASEAN countries. They show that there has been a
gradual increase in the flow of passengers and that of freight and there seems to
be a fluctuation in the freight flow.
The Airlines of ASEAN countries, mainly Thailand, Singapore, and

Malaysia have been flying to major Indian Cities like Mumbai, Delhi, Chennai,
Kolkata, Hyderabad and Benguluru and entered Bilateral Air Service
Agreement. India has offered 18 additional points to ASEAN without any
restriction as to frequency of aircraft and without being subject to commercial
agreement.29
Table 3.9 presents an overview of the Bilateral Air Service Agreement that
was signed with India and its terms of entitlements and offers, the seats and
frequency of air linkages with Malaysia, Singapore and Thailand. There seems
to be maximum utilization of the terms and offers. With regard to Laos PDR,
agreement has been signed in 2015 and Laos is yet to implement it.
109

Table – 3.9: Bilateral Air Services Agreement between India and ASEAN
ASEAN Foreign entitlements Indian Entitlements India’s offer to
(Number of seats offered (Number of seats ASEAN Countries
per week to major metro offered per week to (unilimited seats
cities in India) respective capital cities offered to 18
in ASEAN countries) additional cities)
Brunei 11200 11200 Yes
Cambodia 11200 11200 Yes
Indonesia 11200 11200 Yes
Lao PDR Bilateral Agreement have been signed on July 2015 onwards
Malaysia 20670 20670 Yes
Myanmar 11200 11200 Yes
Phillipines 11200 11200 Yes
Singapore 29700 29700 Yes
Thailand 23609 23609 Yes
Vietnam 11200 11200 Yes
Source : compiled from AIC based on the discussion with DGCA and selected airlines officers and
ASEAN –India Connectivity Report 2016.
Table 3.9.1: ASEAN – India BASA: Air Links City Pair - wise for 2014.
Metro Airports Bandarseri Bangkok Jakarta Kuala Yangon Singapore
Brunei Thailand Indonesia Lumpur Myanmar
Malaysia
Delhi     
Mumbai    
Bengaluru   
Chennai    
Kolkata     
Hyderabad   
Tier I
Ahmedabad  
Amritsar 
Kochi   
Coimbatore 
Guwahati 
Jaipur  
Lucknow   
Nagpur  
Pune 
Tiruchirapalli  
Thiruanathapuram  
Varanasi 
Tier II
Gaya  
Source: Compiled from DGCA.
110

The table 3.9.1 represents the city pair - wise service between ASEAN and
India. The current air links between India and Southeast countries have both
direct links and indirect links. It is evident that the airports of ASEAN countries
have regular direct air service. Indian airports which are classified as Tier I have
direct air connect with ASEAN countries and their capitals. Gaya is qualified as
Tier II and is connected with Bangkok and Myanmar. Some of the Indian cities
are not connected with the ASEAN countries by air.
The table 3.10 gives a clear picture of number of passenger inflow to India
from ASEAN countries and the world at large and vice - versa. It also depicts
that the number of passenger from Singapore are more followed by passengers
from Thailand and Malaysia. A very small number of people from Myanmar
and Indonesia make a trip to India. On the other hand, a large number of people
from India travel to Singapore, Thailand and Indonesia. Very few travel to
Myanmar. On analysis, it is evident that there is not much change in people
travelling; it has increased proportionately over the decade. In case of Southeast
Asian countries except Thailand the rest of the Southeast Asian show freight
surplus and the impact are reflected in the total. Out of ten ASEAN countries
only five countries such as Malaysia, Myanmar, Singapore, Thailand and
Vietnam have direct flights from India. For the remaining countries there is no
direct flight.
Table – 3.10: Country – wise Scheduled International Passengers
carried from India
(Numbers in ‘000)
2005 - 2006 2013 - 2014
Passenger Travel Passenger Travel
Country To India From Difference To India From India Difference
India
(1) (2) (1) – (2) (1) (2) (1) – (2)
Indonesia 11.71 6.73 4.98 - - -
Malaysia 359.37 419.07 -59.71 873.74 902.53 -28.78
Myanmar 12.19 12.48 -0.29 17.93 17.91 26.00
Singapore 853.31 909.11 -55.81 1,581.87 1,629.46 -47.58
Thailand 495.43 510.68 -15.26 1,084.06 1,121.81 -37.74
ASEAN 1,732.00 1,858.09 -126.09 3,557.61 3,671.69 -114.08
World 9,736.53 10,428.71 -692.18 21,170.37 21,914.41 -744.04
Share of 17.78 17.81 16.80 16.75
ASEAN in
World (%)
Source: Compiled from Air transport Statistics, DCGA, New Delhi.
111

Table – 3.10.1: Country – wise Scheduled International Freight carried by

All Airlines from India
(Numbers in ‘000)
2005 - 2006 2013 - 2014

Freight Carried Freight Carried
Country To India From Difference To India From India Difference
India
(1) (2) (1) – (2) (3) (4) (3) – (4)
Indonesia 0.05 0.12 -0.073 - - -
Malaysia 19.36 14.53 4.83 12.8 18.14 -5.28
Myanmar 0.006 0.09 -0.09 0.0006 0.03 -0.03
Singapore 46.22 40.56 5.66 42.81 48.94 -6.14
Thailand 18.05 15.12 2.93 39.07 27.69 11.37
ASEAN 83.68 70.43 13.25 94.74 94.81 -0.07
World 328.74 486.14 -157.39 491.05 770.49 -279.45
Share of 25.45 14.49 - 19.29 12.31 -
ASEAN in
World (%)
Source: Compiled from Air transport Statistics, DCGA, New Delhi.
Table 3.10.1 depicts the comparison of freight carried to and from India.
Except for Thailand, all the other countries recorded freight deficit with India.
There seems to be a good trade relation with Thailand which makes it apparent
that Friendship Agreement is materialising.
The table 3.10.2 depicts the passenger traffic to and from India to ASEAN
countries. The Airlines from India which operates directly to ASEAN countries
represents the Open Sky policy of India. There seems to be a balanced growth
except for few a airlines such as Air India, Jet Airways, Malindo airways,
Myanmar airlines and Tiger Airways. Air Asia in the 2015-16 faced a deficit
and so did Air Asia Berhad. Malindo Airways faced a further deficit from -
3,782 to -14,842, Tiger Airways with a deficit of -13,566 has reduced to -
10,138 in the year 2015 -2016.
112

Table 3.10.2: Passenger Airlines that operate to and from India to ASEAN
Countries for 2014- 2015 and 2015-16
(Numbers in 000)
Domestic/ Passenger 2014-15 Surplu Passenger 2015-16 Surplus/ Growth %

Foreign s/ deficit
Airlines To India from deficit To India from To India From
India India India
Air India 2752772 2704555 -48217 2813407 2850129 36722 2.202 5.38
Air India 1132687 1259473 126786 1248900 1385819 136919 10.25 -89.21
Express
Indigo 703762 749528 45766 801150 849085 47935 13.83 13.28
JetAirways 3317989 3301222 -16767 3496776 3552636 55860 5.38 7.61
Spicejet 478377 505593 27216 597047 646543 49496 24.80 27.87
Air Asia X NA NA NA 14762 5550 -9212 - -
Air Asia 266232 263100 -3132 320137 311093 -9044 20.24 18.24
Berhad
Bangkok 44422 46118 1696 45324 46525 1201 2.03 .88

Airways
Malaysia 484790 518901 34111 422238 422316 78 -12.90 -18.61

Airways
Malindo 77403 73621 -3782 272421 257579 -14842 251.95 249.87

Airways
Myanmar 7783 7463 -320 7653 7836 183 -1.67 4.99

Airlines
Silk Air 190320 209166 18846 214127 232966 18839 12.50 11.37
Singapore 575956 625119 49163 586510 602010 15500 1.83 -3.69

Airlines
Thai Airways 557285 600578 43293 641462 695719 54257 15.10 15.84
Tiger Airways 314176 300610 -13566 334950 324812 -10138 6.61 8.05
Source : compiled from www.dgca.gov.in/report/stat.ind.htm
113

Table 3.10.3: Airlines that operate to and from India to ASEAN Countries for
2014- 2015 and 2015-16
(in tonnes)
Domestic/ Freight 2014-15 Surplus/ Freight 2015-16 Surplus/ Growth %
Foreign Airlines deficit deficit

To India from India To India from To India From
India India
Air India 44088.7 58432.9 14344.2 44218.7 57700.4 13841.7 .29 .29
Air India Express NA 0 - 154.6 3635.5 3480.9 - -
Indigo 2438.4 16459.1 14020.7 1120.0 10117.8 8997.8 -54.06 -38.52
JetAirways 51054.1 68340.0 172859 46767.1 68592.5 21825.4 -8.39 .36
Spicejet 195.6 2930.2 2734.4 442.5 3815.5 3373 126.22 30.21
Air Asia X NA NA NA 462.1 184.6 -277.5 - -
Air Asia Berhad 469.7 2956.2 2486.5 474.1 3770.7 3296.6 .94 27.55
Bangkok Airways 104.5 815.0 710.5 33.1 640.4 607.3 -68.32 -21.42
Malaysia Airways 15364.9 16522.6 1157.7 12398.9 12349.8 -49.1 -91.93 -25.255
Malindo Airways 0.00 3.1 3.1 105.8 795.6 689.8 - - 255.64
Myanmar Airlines 6634 2409.1 -4224.9 1023.8 2583.1 1559.3 -84.56 7.22
Silk Air 32873..2 30541.0 -2332.2 40243.5 36726.5 -3517 22.42 20.25
Singapore Airlines NA NA NA 26969.2 17892.1 -9077.1 - -431.2
Thai Airways 26690.1 22099.5 -4590.6 431.2 510.6 79.4 -98.38 -97.68
Tiger Airways 922.6 3716.9 2794.3 1266.4 3415.9 2149.5 37.26 -8.09
Source : compiled from www.dgca.gov.in/report/stat.ind.htm
On comparison it understood that freight by Myanmar airlines, Silk

airways and Thai airways shows a deficit. This could be due to less capacity of
the carrier or lack of cost effectiveness during the year 2014-15 which is
depicted in the table 3.10.3. The situation in the 2015-2016 shows a further
deficit in Singapore airlines, Silk airways and slight decline of freight carried by
Malaysian airways to the extent of - 49.1 as deficit.
Road Connectivity
Trade in goods and mobility of professionals along the corridors is a major
drive for promoting cross border investment in value chain activities. Improving
and modernising the rural economy lies at the centre of development of ASEAN
– India transformation of the Transport Corridor into the Economic Corridor by
114

developing the road network linking cities, towns and villages using new
technology, financing, developing agro- industry, processing local products and
building training centres for enhancing connectivity.30
MAP – ROAD CONNECTIVITY IN INDIA
115

Table – 3.11: India - Total Road Length and Percentage Share of each Category of
Road (1951 – 2005)
Year National State Other Panchayat JRY & Urban Project Surfaced Total (col
( as High High PWD Raj PMGSY Roads Roads 2+3+4+5+
on 31st ways ways Roads Roads Roads* 6+7+8+9 )

March)
1 2 3 4 6 7 8 9 10 11
1951 19,811 # 1,73,723 2,06,408 0 0 0 1,57,019 3,99,942
4.95 0.00 43.44 51.61 0.00 0.00 0.00 39.26 100
1961 23,798 # 2,57,125 1,97,194 0 46,361 0 2,63,052 5,24,478
4.54 0.00 49.02 37.60 0.00 8.84 0.00 50.16 100
1971 23,838 56,765 2,76,833 3,54,530 0 72,120 1,30,893 3,97,948 9,14,979
2.61 6.20 30.26 38.75 0.00 7.88 14.31 43.49 100
1981 31,671 94,359 4,21,895 6,28,865 0 1,23,120 1,85,511 6,83,676 14,85,421
2.13 6.35 28.40 42.34 0.00 8.29 12.49 46.03 100
1991 33,650 1,27,311 5,09,435 9,31,288 3,29,142 1,86,799 2,09,737 10,90,167 23,27,362
1.45 5.47 21.89 40.01 14.14 8.03 9.01 46.84 100
2001 57,737 1,32,100 7,36,001 10,68,020 9,03,996 2,52,001 2,23,665 16,01,745 33,73,520
1.71 3.92 21.82 31.66 26.80 7.47 6.63 47.48 100
2002 58,112 1,37,711 6,95,335 11,34,326 9,26,697 2,50,295 2,24,124 16,61,555 34,26,600
1.70 4.02 20.29 33.10 27.04 7.30 6.54 48.49 100
2003 58,112 1,34,807 6,96,960 11,55,491 9,26,697 2,97,259 2,59,328 17,01,258 35,28,654
1.65 3.82 19.75 32.75 26.26 8.42 7.35 48.21 100
2004 65,569 1,33,177 7,19,257 11,89.058 9,51,511 3,01,310 2,61,625 17,60,768 36,21,507
1.81 3.68 19.86 32.83 26.27 8.32 7.22 48.62 100
2005 65,569 1,44,396 7,86,230 12,99,463 9,66,976 2,86,707 2,59,815 17,95,298 38,09,156
1.72 3.79 20.64 34.11 25.39 7.53 6.82 47.13 100

# included in other PWD Roads, Totals may not add up because of rounding off of decimal (P):
Provisional
Note: The second row of each year indicates the percentage share of each category of roads to the
total length
*Includes roads constructed under PMGSY launched in December 2000 and JRY launched in 1989-
90 JRY road lengths for years since 1996 - 97 are the same as on 31.3.1996.
Source: Roads wing , Ministry of Road Transport & Highways.
http://www.indiastat.com/transport/30/roads/246/stats.apx.
116

Table - 3.11.1: India - Total Road Length and Percentage Share of each Category
of Road (2006 - 2015)
2006 66,590 1,48,090 8,03,669 13,18,258 9,89,867 2,91,991 2,62,186 18,58,684 38,80,651
%share 1.72 3.82 20.71 33.97 25.51 7.52 6.76 47.90 100
2007 66,590 1,52,235 8,35,003 13,72,867 10,20,621 3,00,580 2,68,505 19,44,758 40,16,401
%share 1.66 3.79 20.79 34.18 25.41 7.48 6.69 48.42 100
2008 66,754 1,54,522 8,63,241 13,88,750 10,61,809 3,04,327 2,70,189 20,36,063 41,09,592
%share 1.62 3.76 21.01 33.79 25.84 7.41 6.57 49.54 100
2009 70,548 1,58,497 9,62,880 15,14,952 11,14,213 3,73,802 2,76,617 23,24,504 44,71,510
%share 1.58 3.54 21.53 33.88 24.92 8.36 6.19 51.98 100
2010 70,934 1,60,177 9,77,414 15,18,205 11,74,330 4,02,448 2,78,931 24,32,813 45,82,439
%share 1.55 3.50 21.33 33.13 25.63 8.78 6.09 53.09 100
2011 70,934 1,63,898 9,98,895 15,30,366 12,19,438 4,11,679 2,81,628 25,24,682 46,76,838
%share 1.52 3.50 21.36 32.72 26.07 8.80 6.02 53.98 100
2012 76,818 1,64,360 10,22,287 15,87,787 12,50,433 4,64,294 2,99,415 26,98,590 48,65,394
%share 1.58 3.38 21.01 32.63 25.70 9.54 6.15 55.46 100
2013 79,116 1,69,227 10,66,747 17,25,318 14,34,321 4,46,238 3,10,955 31,71,002 52,31,922
%share 1.51 3.23 20.39 32.98 27.41 8.53 5.94 60.61 100
2014 91,287 1,70,818 10,82,267 18,00,747 15,03,581 4,57,467 2,96,319 32,20,502 54,02,486
%share 1.69 3.16 20.03 33.33 27.83 8.47 5.48 59.61 100
2015 (P) 97,991 1,67,109 11,01,178 18,31,043 15,06,212 4,67,106 3,01,505 33,41,008 54,72,144
%share 1.79 3.05 20.25 33.46 27.53 8.54 5.51 61.05 100
# included in other PWD Roads, Totals may not add up because of rounding off of decimal (P):
Provisional
Note: The second row of each year indicates the percentage share of each category of roads to the
total length
*Includes roads constructed under PMGSY launched in December 2000 and JRY launched in 1989-
90 JRY road lengths for years since 1996 - 97 are the same as on 31.3.1996 .
Source: Roads wing, Ministry of Road Transport & Highways.
The table 3.11 shows the total road length and percentage share of each
category of Road from 1951 to 2005. It is apparent that all the type of roads,
National Highways, State Highways, the Panchayat Roads, surfaced roads etc,
have increased from 1951-2005. The length of roads has increased from 19,811
kilometres to 65. 569 kilometres in National Highways. The total roads in all
117

categories were 3,99,942 kilometres in 1951 which has increased to 38, 09, 156
kilometres in 2005. The increase in traffic created the demand for new roads.
The table 3.11.1, shows the total road length and percentage share of each
category of Road from 2006 - 2015.The overall summary of the total road
length has been divided in to National Highways, State highways, Other PWD
Roads, Panchayat Raj Roads, Jawahar Rozgar Yojana and Pradhan Mantri
Gram Sadak Yojana, Urban, project Roads and Surfaced Roads. The data shows
that the total road length and its percentage for each category of Roads over the
decades had increased from 3,99,942 kilometres in the year 1951 to 54, 72,144
kilometres in 2015.
The National highways ranged from 19,811 kilometres in 1951 to 97,991

kilometres as on 31st March 2015.The State highways which were 56,765
kilometres in 1971 increased to 1,67,109 kilometres in the year 2015. Other
PWD roads which were 1,73,723 kilometres in 1950-51 has increased to
11,01,178 kilometres in 2015. Panchayat Raj Roads, were 2, 06,408 kilometres
in 1950 and increased over a decade to 18,31,043 kilometres with 33.46 percent
share in the year 2015.
Jawahar Rozgar Yojana started in1991 with 3,29,142 kilometres and the
launching of Pradhan Manthri Gram Sadak Yojana started in the year 2000 has
increased the Road length to 9,03,996 kilometres to solve the unemployment
problem and to involve the youth in nation building. There has been a constant
increase in over the years and it has increased to 15,06,212 kilometres with
27.53 percent of share in the year 2015.
Urban roads ranged from 46,361 kilometres in the year 1961to 4,67,106
kilometres in the year 2015, which contribute 8.54 percent share and Project
Roads launched in the year 1971 was 1,30,893kilometres and increased to
3,01,505 kilometres and holds 5.51 percent of share in the year 2015.The total
length of Surfaced Roads was 1,57,091 kilometres in the year 1951. Over a
decade there has been a constant increase in surfaced Roads. In 2015 the
surfaced roads were 33,41.008 kilometres and had 61.05percent as its share.
118

Table - 3.12: India - Lane - wise Length of National Highways in India as on 31st
March, 2015 (State/ UT - wise)
STATE/UTS TOTAL LESS THAN TWO - FOUR LANE
LENGHT 2 LANE LANE & ABOVE
1 2 3 4 5
ANDHRA PRADESH 4670 621 2374 1675
ARUNACHAL PRADESH 2513 2361 152 0
ASSAM 3784 724 2496 564
BIHAR 4701 1682 2221 789
CHHATISGARH 3079 1098 1746 235
GOA 262 40 182 40
GUJARAT 4971 1872 937 2162
HARYANA 2307 715 1027 565
HIMACHAL PRADESH 2466 1520 930 16
JAMMU & KASHMIR 2593 1841 628 124
JHARKHAND 2632 384 1973 275
KARNATAKA 6432 2315 2751 1366
KERALA 1811 417 1300 94
MADHYA PRADESH 5184 788 3307 1089
MAHARASHTRA 7048 2667 2096 2285
MANIPUR 1746 1311 412 23
MEGHALAYA 1204 672 496 36
MIZORAM 1381 1255 126 0
NAGALAND 1080 1001 79 0
ODHISHA 4645 345 3509 791
PUNJAB 2239 493 1170 576
RAJASTHAN 7886 1621 3974 2291
SIKKIM 309 279 30 0
TAMIL NADU 5006 161 2790 2055
TELENGANA 2687 441 1350 896
TRIPURA 577 502 75 0
UTTARAKHAND 2842 2088 714 40
UTTAR PRADESH 8483 948 5120 2415
WEST BENGAL 2910 554 1672 684
ANDAMAN& NICOBAR ISLANDS 331 320 11 0
CHANDHIGARH 15 0 0 15
DADRA & NAGAR HAVELI 31 31 0 0
DAMAN & DIU 22 22 0 0
DELHI 80 0 0 80
PUDUCHERRY 64 0 53 11
ALL INDIA 97991 31089 45701 21201
Totals may not add up because of rounding off of decimals.
Source: Roads wing , Ministry of Road Transport & Highways
119

The table 3.12 gives details on lane wise length of national highways in
India as on 31st March 2015 in States and Union territories. The table renders
detail on the number of lanes in roads. It is clear that the total of 97,991
kilometres are divided in to three types of lanes:1) lane less than 2 lanes, 2) two
lanes and 3) four lanes and above. It is evident that Uttar Pradesh has the
highest length of Highways followed by Rajasthan with 7,889 kilometres,
Maharashtra with 7048 kilometres, whereas, states like Andhra Pradesh ,Bihar,
Gujarat, Madhya Pradesh, Orissa, Tamil Nadu ranges between 5184 kilometres
to 4670 kilometres. In the rest of the states it ranges between 2621 kilometres to
3079 kilometres. The states that have least highway range from 15 kilometres
lanes to 100 kilometres and these lanes are found in the Union territories of
Delhi, Daman & Diu, Pondicherry, Chhattisgarh and Dadra Haveli. Uttara
Khand has highest of 2088 kilometres and least of 22 kilometres of less than 2
lane. Uttar Pradesh state has highest number of 5120 kilometres two lane.
Nearly 2291 kilometres four lanes and above are in Rajasthan closely followed
by Arunachal Pradesh. Bihar, Chhattisgarh, Jharkhand, Karnataka, Madhya
Pradesh, Maharashtra, Tamil Nadu, and Uttar Pradesh. The rest of the states
have four lanes and above with small coverage of area, for state Meghalaya and
union territories. States which are on the islands and hills do not have four lane
highways and above provision, a few to mention are Andaman & Nicobar,
Daman & Diu, Dadra & Nagar Haveli Tripura, Arunachal Pradesh, Mizoram,
and Nagaland.
The Registered Motor Vehicles in India from 1951 to 2013 are shown in
the table 3.13. It details all the vehicles registered such as, two wheelers, cars,
jeep, buses, good vehicles and other means of transport. There has been an
increasing trend in the registering of the vehicles.
120

121

122

123

124

The table 3.14 Shows State/UT wise Percentage Share in Total Registered
Motor Vehicles in India during 2001-2011. The state wise share shows that
there has been increasing trend in the registered vehicles in Andhra Pradesh,
Tamil Nadu, Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Punjab,
Karnataka, Bihar, West Bengal, Jharkhand, Orrisa and Haryana shows the
increasing trend in vehicles. Whereas, the Union Territories are concerned -
Delhi, Chandigarh and Pudducherry show an increasing trend. In the other
states there has been a growth but at a slow pace. This is due to availability of
both single lane and double lane roads and need and the space to lay four lanes
did not arise.
Rail Connectivity
MAP – RAIL CONNECTIVITY IN INDIA
125

Railways play a positive role in integrating India with ASEAN, This will
promote bulk transnational movement amongst neighbouring countries. To
enhance mutual connectivity it is imperative to link Manipur with India’s main
railway corridor. It is also necessary to renovate railway networks in Myanmar
and to supplement it to develop appropriate strategies to build and manage cross
border infrastructure.31
Table - 3.15: Indian Railways Statistical Summary from 1950-51 to 1990 – 91

ASSET 1950-51 1960-61 1970-71 1980-81 1990-91
Total Investment (In Crores) 855.2 1,868.6 4,099.4 7,448.4 22,200.5
Route Kilometre
Electrified 388 748 3,706 5,345 9,968
Total 53,596 56,247 59,790 61,240 62,367
Running Track Kms
Electrified 937 1,752 7,447 10,474 18,954
Total 59,315 63,602 71,669 75,860 78,607
Number of Stations 5,976 6,523 7,066 7,035 7,100
Rolling Stock ( In Units)-
Locomotives :
Steam 8,120 10,312 9,387 7,469 2,915
Deisel 17 181 1,169 2,403 3,759
Electric 72 131 602 1,036 1,743
Coaching Stock-
Passenger Carriages 13,022 20,062 24,591 27,410 28,677
EMU/DMU/DHMU 460 846 1,750 2,625 3,142
Rail Cars 87 116 85 68 24
Other Coaching vehicles 6,059 7,415 8,719 8,230 6,668
Wagons 205,596 307,907 383,990 400,946 346,102
Personnel
No of Employees 914 1,157 1,374 1,572 1,652
Source: compiled from
http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/2014-
15/Summary%20Sheet_Eng.pdf
Table 3.15, 3.15.1 and 3.15.2 represent the statistical summary of Indian
Railways. The table renders the total investment (in crores) made in the each
decade starting prior to establishment of ASEAN. The initial investment of
855.2 crores was made in 1950 -51 which increased after four decades it
increased to 22,200.5 crores in 1991. The investment during 2000 - 2001 was
63.341.01 crores. These increases make it clear that for India to compete in the
126

global market better infrastructure is essential. To easily mobilize the goods and
services for which the investment to lay routes has to be enhanced depending on
the length of the route. The investment amount have increased to 1,76,726.41
crores in 2014-15. The electrified route kilometres were 388 kilometres out of
the total 53,596 kilometres in 1950-51 has increased to 9,968 kilometres with
route kilometres of 62,367 kilometres in 1990-91. The electrified route
kilometer over the decade in 2000-01 has increased to 14856 kilometres this
consistent increase is evident that electrified route 22,224 kilometres in the year
2014-15, out of the total route of 66,030 kilometres. The number of stations
depending on the route kilometer has increased over decades from 5,976
stations to 7,137 stations in the year 2014-15.
Table – 3.15.1: Indian Railways Statistical Summary from 2000 – 2010
ASSET 2000 - 01 2005 - 06 2006 - 07 2007 - 08 2008 - 09 2009-10

Total Investment (In 63,341.01 1,12,180.41 1,30,168.71 1,51,434.35 1,76,726.41 2,03,315.37
Crores)
Route Kilometre
Electrified 14,856 17,907 17,786 18,274 18,559 18,927
Total 63,028 63,332 63,327 63,273 64,015 63,974
Running Track Kms
Electrified 27,937 33,540 33,623 34,700 35,471 35,811
Total 81,865 84,370 85,389 85,158 86,937 87,087
Number of Stations 6,843 6,974 6,909 7,025 7,030 7,083
Locomotives :
Steam 54 44 43 44 43 42
Deisel 4,702 4,793 4,816 4,843 4,963 5,022
Electric 2,810 3,188 3,294 3,443 3,586 3,825
Coaching Stock-
Passenger Carriages 33,236 38,156 38,855 40,696 42,079 43,526
EMU/DMU/DHMU 4,668 5,894 6,454 6,641 6,984 7,487
Rail Cars 22 40 41 38 38 37
Other Coaching vehicles 4,731 5,612 5,905 6,180 5,985 6,477
Wagons 222,193 207,983 207,723 204,034 212,835 2,20,549
Personnel
No of Employees 1,545 1,412 1,398 1,394 1,386 1,362
Source: Compiled from
127

Table - 3.15.2: Indian Railways Statistical Summary from 2010 – 2016
ASSET 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014-15 2015-16

Total Investment (In Crores) 2,31,615 2,57,958.35 2,89,374.87 3,24,662.40 3,68,758.21 41912361
Route Kilometre
Electrified 19,607 20,275 20,884 21,614 22,224 23555
Total 64,460 64,600 65,436 65,808 66,030 66687
Running Track Kms
Electrified 36,007 38,669 38,524 39,661 41,038 43357
Total 87,114 89,801 89,236 89,919 90,803 92081
Number of Stations 7,133 7,146 7,172 7,112 7,137 7216
Locomotives :
Steam 43 43 43 43 43 39
Deisel 5,137 5,197 5,345 5,633 5,016 5869
Electric 4,033 4,309 4,568 4,823 5,016 5214
Coaching Stock-
Passenger Carriages 45,048 46,688 48,037 50,194 51,798 53101
EMU/DMU/DHMU 8,053 8,617 9,184 9,371 9,725 10210
Rail Cars 34 34 35 35 35 31
Other Coaching vehicles 6,500 6,560 6,622 6,792 7,000 6899
Wagons 2,29,997 2,39,321 2,44,818 2,52,833 2,54,006 251526
Personnel
No of Employees 1,332 1,306 1,307 1,334 1,326 1331
The Rolling stock in units for locomotives has been classified as Steam,
Diesel and Electric. The Rolling stock illustrates about the vehicles used in
1950-51 were 8,120 units of steam, 17 units of diesel vehicles and 72 units of
electric vehicles were used. Over the decades with advancement in technology
and with cost effectiveness preference for the vehicle is varying which is
evident that the diesel locomotives has increased to 3,759 units. The diesel rails
works out to be cheaper and cost effective and the number of people commute
by train. The diesel locomotives in the year 1950-51 were only 17 units which
rose to 5,633 units in 2013-2014. In 2014-2015 the diesel locomotives are
reduced to 5,016 units this was because old vehicles were being scrapped. The
travel by electric trains has also risen from 72 units in 1950- 51 to 5,016 units in
128

the year 2014-2015. The increase over the decades illustrates that after
1991with increased routes more people are commuting by train to reach their
destination. This had also enabled business people, employees, workers and
labour to save travelling time.
The passenger carriages increased from 13,022 units in1950-51 to 20,062

units during 1960-61. Over the decades there has been a considerable increase
to the extent of 51,798 units in 2014-15. This shows that people had been
commuting by train. The Electrified Multiple Unit /Diesel Multiple Unit/Diesel
Hydraulic Multiple Unit are some of the coaching stock units that have been
used by commuters to reach their destination. It had 460 units in 1950-51 which
has increased to 3,142 units over four decades that is in the year 1990-91.
Thereafter, from 2000 - 01 to 2014-15 there has been a constant increase in
usage of the EMU/DMU/DHMU trains. Rail cars were 87 units four decades
ago and have increased to 22 cars in 1990-91, increasing to 40 cars in 2005-06.
Recently the number decreased to 34 cars in the year 2014-15. The reasons are
costly maintenance and the rail cars are worn out and been scrapped.
Other Coaching vehicles were 6,059 units five decades ago and the table
shows no constant increase or decrease. The coaching vehicles range between
highest of 8,719 units in 1970-71 and lowest of 4,731 units during 2000-01 .In
2014-15,the coach vehicles stabilised at 7,000 units. Wagons constantly
increased over the decades from 1950-51 to the year 2014-15, ranged from
2,05,596 units to 2,54,006 units. The number of employees increased from 914
thousand employees to 1,652 thousand employees in 1990-91. The number
reduced to 1,386 thousand employees during 2008-09. This was due to the
recession. There seems to be no recruitment of employees they remained at
1,326 thousand employees in the year 2014-15.
Table: 3.16, 3.16.1 and 3.16.2 gives the summary of Indian Railways from
1950-51 to 2015-16, they depict the passenger traffic in millions and freight
traffic in terms of rate per tonne kilometre. The number of passenger travelling
in 1950-51 is 1,284 million and constantly increased over the decades to 8,224
million in 2014-15. The passenger kilometre in million ranged from 66,517
million to 4,57,022 million in 2000 – 01. From 2005-06 onwards there has been
an increasing trend and it has gone up from 6,15,614 million to 11,43,039
million in the year 2014-15. The average lead in kilometre ranged from 107.5
kilometre million to 141.0 kilometre million in the year 2015-16.
129

Table - 3.16: Indian Railways Statistical Summary

from 1950 – 2001 (Traffic)
1950-51 1960-61 1970-71 1980-81 1990-91 2000- 01
PASSENGER TRAFFIC
no of passengers originating (in millions) 1,284 1,594 2,431 3,613 3,858 4,833
Passenger km ( in million) 66,517 77,665 118,120 208,558 295,644 457,022
Passenger earnings ( in crores ) 98.2 131.6 295.5 827.5 3,144.7 10,483.2
Average lead ( in kms) 51.8 48.7 48.6 57.7 76.6 94.6
Average rate per passenger Km.(in Paise) 1.48 1.71 2.50 3.97 10.64 22.94
FREIGHT TRAFFIC
Tonnes Originating ( in million)
Revenue Earning Traffic 73.2 119.8 167.9 195.9 318.4 473.5
Total Traffic 93.0 156.2 196.5 220.0 341.4 504.2
Net Tonne Kms. ( in million)
Revenue Earning Traffic 37,565 72,333 110,696 147,652 235,785 312,371
Total Traffic 44,117 87,680 127,358 158,474 242,699 315,516
Earning From Freight Carried Excl.
Wharfage & Demurrage Charges in (Rs.in 139.3 280.5 600.7 1,550.9 8247.0 23,045.41
Crores)
Average Lead –m Total Traffic ( In Km.) 470 561 648 720 711 626
Average Rate Per Tonne Km. ( in Paise) 3.16 3.87 5.43 10.50 35.00 73.78
130

Table - 3.16.1: Indian Railways Statistical Summary

from 2005 – 2011 (Traffic)
2005 - 06 2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11
PASSENGER TRAFFIC
no of passengers originating ( in 5,725 6,219 6,524 6,920 7,246 7,651
million )
Passenger km ( in million) 615,614 694,764 769,956 838,032 903,465 978,508
Passenger earnings ( in crores ) 15,080.77 17,176.01 19,783.25 21,866.48 23,414.44 25,705.64
Average lead ( in kms) 107.5 111.7 118 121.1 124.7 127.9
Average rate per passenger Km.(in 24.5 24.7 25.7 26.09 25.9 26.3
Paise)
FREIGHT TRAFFIC
Tonnes Originating ( in million)
Revenue Earning Traffic 666.5 727.75 793.89 833.39 887.79 921.73
Total Traffic 682.4 744.56 804.11 836.61 892.22 926.43
Net Tonne Kms. ( in million)
Revenue Earning Traffic 439,596 480,993 521,371 551,448 600,548 625,723
Total Traffic 441,762 483,422 523,196 552,002 601,290 626,473
Wharfage & Demurrage Charges in 35,534.69 41,073.21 46,425.49 51,749.34 56,911.51 60,687.05
(Rs.in Crores)
Average Lead –m Total Traffic ( In 647 649 651 660 674 676
Km.)
Average Rate Per Tonne Km. ( in 80.83 85.39 89.04 93.84 94.77 96.99
Paise)
131

Table - 3.16.2: Indian Railways Statistical Summary from 2011 – 2016 (Traffic)
2011-12 2012-13 2013-14 2014-15 2015-16

PASSENGER TRAFFIC
no of passengers originating (in 8,224 8,421 8,397 8,224 8107
million )
Passenger km (in million) 1,046,522 1,098,103 1,140,412* 1,147,190 1143039
Passenger earnings (in crores ) 28,246.43 31,322.84 36,532.25 42,189.61 44283.26
Average lead ( in kms) 127.2 130.4 135.8* 139.5 141.0
Average rate per passenger Km.(in 27.0 28.5 32.0* 36.8 38.7
Paise)
FREIGHT TRAFFIC
Tonnes Originating (in million)
Revenue Earning Traffic 969.05 1,008.09 1,051.64 1,095.26 1101.51
Total Traffic 975.16 1,014.15 1,058.81 1,101.09 1108.62
Net Tonne Kms. (in million)
Revenue Earning Traffic 667,607 649,645 665,810 681,696 654.481
Total Traffic 668,618 650,625 666,728 682,612 655605
Wharfage & Demurrage Charges in 67,743.62 83,478.83 91,570.85 1,03,100.1 1069940.5
(Rs.in Crores) 5 5
Average Lead –m Total Traffic 686 642 630 620 591
(In Km.)
Average Rate Per Tonne Km. 101.47 128.50 137.53 151.24 163.40
(in Paise)
http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/2014-15/Summary%
20Sheet_Eng.pdf
The Freight traffic given in the table provides the summary of revenue
earned in millions. It was 73.2 million in 1950 -51 and then increased to
1,101.51 million in the year 2015- 16. This increase reflects on the growth and
development of Indian railways. There has been a considerable increase from
revenue earning traffic which was 37,565 million in 1950-51 increased to
6,54,481 million in the 2015-16. The table shows that the number of passengers,
has considerably increased. This was due to better infrastructure and
132

connectivity which helped people to move around. The result of this is the
freight revenue increase goods, not passengers.
Table - 3.17: Indian Railways Network Gauge - wise and Zone - wise
Gauge Route kms Running track kms Total track kms
Broad Guage (1676 mm) 58,825 83,266 1,09,535
Metre Guage (1000 mm) 4,908 5,240 5,929
Narrow Guage ( 762mm and 610 mm) 2,297 2,297 2,532
Total 66,030 90,803 1,17,996
Zones / Headquarters Route Kms Running track kms Total track kms
Central, Mumbai 4,042 6,195 8,444
Eastern, Kolkata 2,666 4,705 7,376
East Central, Hajipur 3,791 5,495 8,048
East Coast, Bhuvaneshwar 2,679 3,872 5,294
Northern, New Delhi 7,221 9,365 12,771
Northern Central,Allahabad 3,216 4,820 5,935
North Eastern, Gorakhpur 3,869 4,744 5,169
Northeast Frontier ,Maligaon (Guwahati) 3,996 4,386 5,972
North Western, Jaipur 5,554 6,944 7,354
Southern, Chennai 5,079 6,950 8,533
South Central, Secunderabad 5,922 8,085 9,971
South Eastern, Kolkata 2,722 5,034 6,789
South East Central, Bilaspur 2,489 3,613 4,999
South Western, Hubli 3,322 3,849 4,816
Western ,Mumbai 6,440 7,919 10,225
West Central, Jabalpur 2,995 4,769 6,205
Metro Railway 27 58 95
Total 66,030 90,803 1,17,996

http://www.indianrailways.gov.in/railwayboard/uploads/directorate/stat_econ/2014-15/Summary%
20Sheet_Eng.pdf
The table 3.17 reveals the details on the size of network gauge wise and
zone. The total track 1,17,996 kilometres is divided into broad gauge (1676mm)
133

of 1,09,535 kms, Metre gauge (1000mm) of 5,929 kms and Narrow gauge (762
mm and 610mm) of 2,532 kms. The total track is further divided as 66,030 kms
as route and 90,803 kms as running track . This is further divided according to
the zones depending on the gauges and availability and accessibility to rail
track. The Northern New Delhi, Western Mumbai, South Central, Secundrabad,
Southern Chennai, Central Mumbai, East central Hajipur, Eastern Kolkota,
North western Jaipur ,West central Jabalpur south has the longest Total track of
12,771 kilometres, 10,225 kilometres, 9,971 kilometres, 8,53,38,444 kilometres,
8,048 kilometres 7,376 kilometres and 7,354 kilometres respectively. However
track ranges from 4,816 kilometres to 6,789 kilometres is distributed among
other states. Out of the total track 95 kilometres are allotted for metro railway to
make easy accessibility to the mode to transport.
Tourism
Travel is sources of delight to mankind it facilitate people to explore new
places and seek a change in environment. It enriches people with entertainment,
education, etc. and also serve as the important to the growth of the trade of
commerce. The entire exercises come under the banner of Tourism. The
industry and centres thrive at tourism for the expansion of the foreign
investment and also enriches social and cultural cohesion and national
integration.32
The table 3.18 depicts the foreign tourist arrivals in India Since 1981
onwards to 2014. The annual growth data shows that during 1984, 11,93,752
million people arrived in India as tourists. The annual growth percentage is
negligible as - 0.72 percent for the year 1998, In 2004, it reached its peak at
26.8 percent. However, during 2009 the percentage growth of tourist was - 2.2
percent. This was due to recession period. In the year 2015 the number of
foreign tourists increased to 80,27,133 million and the growth rate is 4.5
percent. This shows that the FTA’s before 2000 was very slow and the number
was not very consistent. After 2000, there was a steady increase in the FTA and
there was a good progression after 2010 when it started to increase consistently.
In 2014 however the FTA was 10.2 percent which have decreased yet again in
the year 2015 may be because of political changes, inflation and fluctuations in
dollar rate.
134

Table - 3.18: Foreign Tourist Arrivals (FTAs) In India 1981 – 2016
Year FTA’S in India Annual Growth %

1981 1279210 2.0
1982 1288162 0.7
1983 1304976 1.3
1984 1193752 -8.5
1985 1259384 5.5
1986 1451076 15.2
1987 1484290 2.3
1988 1590661 7.2
1989 1736093 9.1
1990 1707158 -1.7
1991 1677508 -1.7
1992 1867651 11.3
1993 1764830 -5.5
1994 1886433 6.9
1995 2123683 12.6
1996 2287860 7.7
1997 2374094 3.8
1998 2358629 -0.7
1999 2481928 5.2
2000 2649378 6.7
2001 2537282 -4.2
2002 2384364 -6.0
2003 2726214 14.3
2004 3457477 26.8
2005 3918610 13.3
2006 4447167 13.5
2007 5081504 14.3
2008 5282603 4.0
2009 5167699 -2.2
2010 5775692 11.8
2011 6309222 9.2
2012 6577745 4.3
2013 6967601 5.9
2014 7679099 10.2
2015 8027133 4.5
2016 (Jan to June) 4186127 -
Source: Bureau of Immigration, Government of India. Ministry of Tourism, Government of India.
2015
135

Table - 3.19: Foreign Tourist in India and Foreign Exchange Earnings for the
Years 2000 –2016
Year Foreign Percentage Foreign Percentage Foreign Percentage

Tourist Change Over Exchange Change Over Exchange Change Over
Arrivals Previous Earning Previous Earnings Previous Year
(in nos.) Year (Rs.Crores) Year (Million US$)
2000 26,49,378 6.7 15,626 20.6 3,460 15.0
2001 25,37,282 - 4.2 15,083 -3.5 3,198 -7.6
2002 23,84,364 -6.0 15,064 - 0.1 3,103 -3.0
2003 27,26,214 14.3 20,729 37.6 4,463 43.8
2004 34,57,477 26.8 27,944 34.8 6,170 38.2
2005 39,18,610 13.3 33,123 18.5 7,493 21.4
2006 44,47,167 13.5 39,025 17.8 8,634 15.2
2007 50,81,504 14.3 44,360 13.7 10,729 24.3
2008 52,82,603 4.0 51,294 15.6 11,832 10.3
2009 51,67,699 -2.2 53,700 4.7 11,136 -5.9
2010 57,75,692 11.8 64,889 (p) 20.8 14,193 (P) 27.5
2011 63,09,222 9.2 77,591 (p) 19.6 16,564 (P) 16.7
2012 65,77,745 4.3 94,487 (p) 21.8 17,737 (P) 7.1
2013 69,67,601 5.9 1,07,671 (PR) 14.0 18,445 (PR) 4.0
2014 76,79,099 10.2 1,23,320(PR) 14.5 20,236(PR) 9.7
2015 80,27,133 4.5 1,35,193(PR) 9.6 21,071(PR) -4.1
2016 10865 - 73065
(Jan to June)
Source: Annual Report 2015-16, Ministry of Tourism, Government of India, New Delhi.
Note: (P) Provisional, (PR) Provisionally Revised estimates.
Table 3.19 the Annual Report for the year 2015-16 gives the details of
foreign exchange earned by India on account of tourist arrivals over the years.
The year 2003 was growth period and percentage change was almost 43.8
percent and in the year 2004 it was 38.2 percent. In the year 2008 it was 10.3
percent and it reached its peak in 27.5 percent. It ranged from 15,626 crores in
the year 2000 to 1,35,193 crores provisionally revised estimate in 2015. This
difference was due to fluctuations in the exchange rate and also inflation.
136

Table - 3.20: Tourist Arrivals to India and the World

(In Million)
Year World Tourists % Share Average Growth Rate
tourists Arrival to of India World tourists Tourists Arrivals to
Arrivals India Arrivals India
1996 572.4 2.29 .40 0 0
1997 596.0 2.37 .40 4.12 3.49
1998 614.3 2.36 .38 3.07 -0.42
1999 637.4 2.48 .39 3.76 5.08
2000 683.3 2.65 .39 7.2 6.85
2001 683.4 2.54 .37 -0.0001 -4.15
2002 703.2 2.38 .34 2.90 -6.30
2003 691.0 2.73 .39 -1.73 14.71
2004 762.0 2.46 .32 10.27 -9.89
2005 803.4 3.92 .49 5.43 59.35
2006 846.0 4.45 .53 5.30 13.52
2007 894.0 5.08 .59 5.67 14.16
2008 917.0 5.28 .61 2.57 3.94
2009 883.0 5.17 .59 -3.70 -2.08
2010 948.0 5.78 .61 7.36 11.79
2011 994.0 6.31 0.63 4.85 9.16
2012 1039.0 6.58 0.63 4.52 4.27
2013 1087.0 6.97 0.64 4.61 5.9
2014 1134.0 7.68 0.68 4.32 10.18
2015(P) 1184.0 8.03 0.68 4.41 4.5
AAGR 3.74 7.20
Note: (P) Provisional
Source: Tourism Statistical Information. 1996-2010, Chennai. Ministry of Tourism, Government of
India.
Chart –3. 13: World Tourist Arrival and Indian Tourist Arrivals Growth Rate
70
60
50
40 World Tourist Arrival
30 Growth rate
20 Tourist Arrival to India
10 Growth rate
0
‐10 2000 2002 2004 2006 2008 2010 2012 2014
‐20
137

Table 3.20 depicts the tourists arrivals to India and the world. In 1996,
2.29 million tourists arrived in India which increased to 2.65 million in the year
2000 and rose to 3.92 million in the year 2005.The average growth of tourists in
India went up to almost 59 percent in the year 2005.After 2005 there was a
gradual increase to 4.45 million in the year 2006 and 5.08 million in the year
2007 with decline of – 3.70 percent in 2009 and 7.36 million in 2010. The
impact of financial crisis in Asia was reflected shows a low but positive growth.
Table - 3.21: Foreign Tourists Arrivals (FTAs) in India 1998- 2016
Year FTAs in India (in Percentage (%) Change over the

Million) Previous Year
1998 2.36 -0.7
1999 2.48 5.2
2000 2.65 6.7
2001 2.54 -4.2
2002 2.38 -6.0
2003 2.73 14.3
2004 3.46 26.8
2005 3.92 13.3
2006 4.45 13.5
2007 5.08 14.3
2008 5.28 4.0
2009 5.17 -2.2
2010 5.78 11.8
2011 6.31 9.2
2012 6.58 4.3
2013 6.97 5.9
2014 7.68 10.2
2015 8.03 4.5
2016(jan-June) 4.19 8.9@
(P) Provisional, @ Growth Rate over jan- june, 2016.
Source: I ) Bureau of immigration, Government of India, for 1998-2014. ii) Ministry of Tourism,
Government of India, for jan- june, 2015
138

Chart – 3.14: Foreign Tourists Arrivals (FTAs) in India
30
25
20
15
10 Annual Growth
5
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
‐5
‐10
The table 3.21 depicts the foreign tourists arrivals (FTAs) in India between
1998-2016. In 2000 there was 2.65 million FTAs in India which showed a
percentage change of 6.7 percent In 2005 the total FTAs in India was 3.92
million with a percentage share change of 13.3 percent. In 2010, the total FTAs
in India was 5.78 million with a change of 11.8 percent and by 2014 the total
FTAs were 7.68 million with a change of 10.2 percent. The share of FTAs in
India shows a steady increase in percentage except for a very few fluctuations
with negative percentage however there is a positive growth over the years.
The Table 3.22 depicts FTAs in India according to the mode of travel for
the period 1996 to 2015. The foreign tourist travelled by Air, Sea and land. The
mode of travel predominantly air for all regions accounted for more than 98.5
percent in 1996 which has slightly decreased to 84.5 percent in the year 2015.
Sea played a small role as a mode of travel to foreign tourist. However, the
foreign tourist entry from Southeast Asia by sea ranged between 0.1 percent in
1996 has increased to 0.7 percent in 2015. in usage of sea route for travel.
Foreign tourist arrivals using land was 1.4 percent in 1996 which has increased
to 14.8 percent in 2015. All these changes in the mode of travel is due to better
connectivity, cost effectiveness and ease, modern facilities, better services and
time saving. People rely on Airways more because it saves time and cost
effective. Travel by land is the next better mode sought by the people; this is
due to better road connectivity and usage of hi-tech means of transport. There
has been no considerable change in the usage of sea route. It has been negligible
and foreign tourist avoid it because of time consumption and costlier.
139

Tab
ble - 3.22: Foreign Tourists Arrivals
A (FTAs)) in India - Acccording to Mode of
T
Travel 1996- 20
015
Yearr Arrivals Percentagee distribution byy mode of travell

Air Sea Landd
19966 2287860 98.5 0.1 1.4
19977 2374094 98.5 0.0 1.5
19988 2358629 98.5 0.0 1.5
19999 2481928 98.4 0.0 1.6
20000 2649378 98.5 0.0 1.5
2001 2537282 87.1 0.9 12.00
20022 2384364 81.9 0.6 17.55
20033 2726214 83.1 0.5 16.44
20044 3457477 85.6 0.5 13.99
20055 3918610 86.5 0.4 13.1
20066 4447167 87.1 0.6 12.33
20077 5081504 88.4 0.6 11.00
20088 5282603 89.1 0.7 10.22
20099 5167699 89.8 1.0 9.2
20100 5775692 91.8 0.7 7.5
2011 6309222 92.0 0.8 7.2
20122 6577745 91.7 0.7 7.6
20133 6967601 91.0 0.5 8.5
20144 7679099 86.1 0.4 13.55
20155 8027133 84.5 0.7 14.88
Sourcee: Bureau of immmigration, Govvernment of India from 1996- 2013. Compiled from
Ministrry of Tourism.
Chart–33.15: Foreign Tourists

T Arrivvals (FTAs) in India-According to Mode off Travel
1
100
Travel by A
Air
50
Travel by Seea
0 Travel by land
2000 2002 Travel by Air

2
2004 2006 2008 2010
2 2012
140

Major Infrastructure projects

The infrastructure projects were formulated with the objective of
providing seamless connectivity from India to the South East Asian countries.
The road networks to the immediate surrounding areas were not adequate and
the traffic dispersal from various areas was not efficient. This created a demand
for smooth connectivity and the development ensuring effective environment
protection mechanism for sustainable long term development.
Table - 3.23: On Going and Prospective Infrastructure Projects for ASEAN –

India Connectivity: India Other than Tamil Nadu
Type Sector Sub-Sector Project Name Cost Status

(US$
million)
Public PPP logistics Road /bridge National Highway 16,159.8 Ongoing
Development Plan(NHDP)
Phase 1&2
Public PPP logistics Road /bridge National Highway 20,156.5 Ongoing
Phase 3
PPP logistics Road /bridge National Highway 10,302.5 Ongoing
Phase 5
PPP logistics Road /bridge National Highway 4170.0 Ongoing
Phase 6
Public PPP logistics Road /bridge National Highway 4170.0 Ongoing
Phase 7
Public logistics Road /bridge Construction 100 Km road 128.0 Ongoing
connecting lawngtlai on
NH54 to India-Myanmar
border in Mizoram.
Public logistics Road /bridge Upgraduation 110 Km of NA Ongoing
Imphal-Moreh, connectivity
on NH39
Public PPP logistics Road /bridge Accelerated road 3030.8 Ongoing
development programme
for the North East Region.
PPP logistics Railway Dedicated Frieght corridors 10,350.0 Ongoing
(western &Eastern
corridors)
141

Type Sector Sub-Sector Project Name Cost Status

(US$
million)
Public logistics Railway High speed Rail (HSR) system NA Ongoing
between Hyderabad-Dornakal-
Vijayawada-Chennai.
Public logistics Railway New railway line between 554.0 Ongoing
Jiribumand Imphal Manipur.
Public PPP logistics Port/Maritime Conversion/development of 7th 63.1 Ongoing
berth into coal terminal at
Marmugoa port.
Public PPP logistics Port/Maritime Development ofdeep draught 119.8 Ongoing
coal berth atPradip port.
Public PPP logistics Port/Maritime Development of deep draught 129.8 Ongoing
Iron ore berth at Pradip port.
Public PPP logistics Port/Maritime Haldia Port Development NA Ongoing
Public PPP logistics Port/Maritime International container trans- 269.0 Ongoing
shipment terminal (ICTT)at
Cochin Port.
Public PPP logistics Port/Maritime Mechanisation of Iron ore 74.0 Ongoing
handling facitility as a backup
requirement at deep draught
berth No.14 at New Mangalore
Port
Public PPP logistics Port/Maritime The Vishakapatinam Port. 28.6 Ongoing
Public logistics Dry Port Integrated check- post(ICP) at 1.1 Ongoing
Akhuara,Tripura
Dawki, Meghalaya

Moreah, Manipur
Public logistics Air Port Green field airport-Navi Mumbai 890.0 Ongoing
PPP
Public logistics Air Port Green field airport-Bijapur 50.0 Ongoing
PPP
Public logistics Air Port Green field airport-Durgapur 150.0 Ongoing
PPP
PPP logistics Air Port Green field airport-Kannaur 232.5 Ongoing
142

Public logistics Air Port Green field airport- Pakyoung 77.4 Ongoing
PPP
Public logistics Air Port Green field airport-Sindhudurg 43.8 Ongoing
PPP
Public Logistics Air Port Green field airport-Dabra 525.0 Prospective
PPP
Public Logistics Air Port Green field airport-Gulbarga 19.1 Prospective
PPP
Public Logistics Air Port Green field airport-Hassan NA Prospective
PPP
Public Logistics Air Port Green field airport-Kushi Nagar NA Prospective
PPP
Public Logistics Air Port Green field airport-Shimoga NA Prospective
PPP
Public Logistics Air Port Green field airport-Mopa (Goa) NA Prospective
PPP
Public Logistics Air Port Green field airport-Palladi NA Prospective
PPP
Public Economi Industrial Delhi-Mumbai industrial corridor 90,000.0 ongoing
PPP cs Estate/SEZ
Source: Compiled from ASEAN-India Connectivity India Country Study, Research and
Information System for Developing Countries.
Table 3.23 depicts the ongoing projects which are classified into road and
bridge construction and up gradation, seaports and airports. Most projects are
ongoing projects and some of them are nearing completion. In the Road Bridge
projects, The National Highways Development Projects (NHDP) are in phase 1-
7. The 100 kilometre road is being planned connecting NH 54 of India with
Myanmar in Mizoram. NH 39 in Imphal is a road which is being up graded
which is called the Morech connectivity.
A high Speed Railway project is planned between Hyderabad -

Vijayawada and Chennai. Many ports are being developed in Paradip, Haldia,
Cochin and New Mangalore. Airports are planned at vital centres like
Durgapur, and Kannur. There are many SEZ especially the Delhi- Mumbai
Industrial Corridor to promote Industries and commercialisation. Initiatives
have already been undertaken to involve the participation of private stakeholder
in partnership with the public for infrastructure projects.
143

Challenges before India-ASEAN

There are several challenges the region will have to address - both at the
national and the regional levels - to effectively meet ASEAN aspirations by
2030. Nations are largely driven by domestic economic policy. But as
advantages of cooperation become more apparent, national priorities slowly
meld into a more regional thrust. As discussed previously, ASEAN aspirations
are multi-dimensional. Its challenges are thus equally multi-faceted. The
bottoms-up approach towards this issue has identified four central prerequisites
that underpin the future trajectory of the ASEAN:33
(i) managing macroeconomic and financial stability for resilience;

(ii) promoting economic convergence and equitable growth for ensuring
inclusiveness;
(iii) using and developing comparative advantage and innovation for
competitiveness; and
(iv) Nurturing natural resources and sustaining the environment for
harmonious growth. And the need for greater connectivity is perceived
to be the underpinning for the realizations of the above mentioned
goals.
The importance of connectivity for ASEAN can be better appreciated by

skimming through a few statistics. If ASEAN is to be taken as a single country,
it will be the world’s ninth largest economy with the third largest population
and the world’s fifth largest trading power (only after the EU, US, China and
Germany).34 Thus for ASEAN as a block, enhanced connectivity will position it
to take advantage of not only these factors but also other global developments.
However the basic characteristics of the transport modes determine the

relative importance of each mode to international or domestic transport service
providers in South and Southeast Asia, who must balance the impact of various
factors affecting cost, speed and reliability in the movement of passenger or
freight traffic:35
I. Road transport is generally considered as a fast and relatively reliable

mode; its ability to provide door-to-door services can offset its higher
costs vis-à-vis maritime or rail modes.
144

II. Rail transport is an underutilized transport mode in South and

Southeast Asia because of serious limitations in the rail network,
particularly in facilitating regional connectivity. Myanmar has no
international railway connections and no rail network is operational in
the Laos PDR.
III. Maritime transport is the dominant transport mode for the movement
of international trade. Better economies of scale in maritime transport
can be achieved by conveying goods in large volumes over long
distances in comparison to road transport.
IV. Air transport provides fast and reliable services and is particularly
important for the tourism industry. Although it is also expensive, the
proliferation of low-cost carriers has considerably widened the
passenger market for air transport.
V. Inland water transport, an important mode particularly in Southeast
Asia, is relatively cheap, but also slower and not always reliable.
For ASEAN all these forms of transportation are of equal importance.
However critical gaps in land transportation connectivity between South and
Southeast Asia exist mainly in Myanmar. In some cases, gaps are absolute in
the sense that there are no linkages of any sort, particularly in the rail sector.
For the road sector, gaps are usually poor quality roads which cannot
accommodate reliable, all weather travel. The main cross-sub regional highway
links are the Asian Highway 1 and 2 connecting India and Bangladesh with
Myanmar and the rest of Southeast Asia, and three significant gaps have been
identified in crossings to Myanmar.
Opportunities in India-ASEAN Relationship

Opportunities for broadening and deepening production networks to
ASEAN:36
 to narrow the development gap among Asian countries moving up the

value chain and through technology transfer, knowledge sharing, FDI
and scale economies;
 to improve competitiveness and connectivity;
 to target the rapidly increasing middle class in emerging economies;
 to further economic integration in ASEAN in order to facilitate trade
and investment; and
145

 to improve economic integration between India and Southeast Asia,

and the rest of the world.
A related issue is the importance of energy market integration. Southeast
Asia comprises several energy surplus countries - Myanmar, Nepal, Bhutan,
Laos PDR, Cambodia, while many other countries suffer from severe and
growing energy deficits. Energy trade and energy market integration will allow
energy surplus economies to supply clean energy to energy-deficit economies.
India’s role and leadership is critical in consolidating and carrying other

economies as a gateway to markets of ASEAN. ASEAN cooperation should be
widened from trade, investment and infrastructure to include issues like
environment and climate change; energy, water and food security; and services
such as Research and Development, education, technology, health and money
and finance, and communicable disease, and natural disaster management.
Sharing experiences, knowledge, and technology and management know-how is
crucial to address common challenges for development. Financial cooperation
and integration is essential for mobilizing regional resources for industrial
investment, and infrastructure investment across the region. India has to play an
important role in utilising the huge potential for economic integration between
and Southeast Asia leading to peace, prosperity and stability of these regions.
Political commitment and innovative leadership to cooperation, collaboration
and partnership are essential for an integrated Southeast Asia.
These are the several ASEAN “centers” that have been created over the
years to promote members’ functional cooperation in different areas. Examples
include the Centre for Energy and the Centre for Biodiversity, both of which are
governed by Boards made up of ASEAN Senior Officials and the Secretary
General. Other bodies of this nature were created in areas related to the
environment - Earthquake Information Centre, Coordinating Centre for Trans-
boundary Haze Pollution, Meteorological Centre - and in areas related to
industrial development - Centre for the Development of Agricultural
Cooperatives, Council on Petroleum. In the area of education and capacity
building, the group has also established the ASEAN University Network and
the Insurance Training and Research Institute. Another important group active
in the field of education is the Southeast Asian Ministers of Education
Organization, which predates ASEAN. It should be stressed that some of these
146

“centres” are dependent on external funding, so their sustainability has yet to be

secured.37
As connectivity is crucial for building a vibrant internal market and

linking it to the global economy, ASEAN endorsed a Master Plan on
connectivity which focus on among other things Transport, information and
communication technology (ICT), energy and cross border linkages and the
facilitation of the smooth movement of people goods and services.38
The tie between India and Southeast Asia at present is not only limited to
tangible physical contact but also goes on to inculcate intangible networks.
These, in the form of the various centers under the umbrella of ASEAN, help in
the exchange of the best practices on a host of spheres like education to disaster
management, and environment to energy.
Reference
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Strategic Partnership. Proceedings of the second Round table on ASEAN _India
Network of Think-Tanks (AINTT). New Delhi: Research and Information system for
developing countries P.89
2. India and The ASEAN Region Since 1991: Towards Positive Interdependence,
Doctor of Philosophy, Malla V.S. Vara Prasad, Division of South-East Asian &
South-West Pacific Studies Centre For South, Central, South-East Asian & South-
West Pacific Studies, School of International Studies, Jawaharlal Nehru
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6. Ibid.p.564
7. Ibid.p.566
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Commission of Malaysia (SUHAKAM) 5 th Roundtable Discussion on Human
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Rights in ASEAN – Towards an ASEAN Human Rights System: Role of

Institutions and Related Activities .Bangkok. P.15-16
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10. http://www.businessdictionary.com/definition/demographic-factors.html
11. Research and Information System for Developing Countries. (2013). ASEAN –
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Think – Tanks. In Nguyen Huy Hoang, Foreign Direct Investment and SEAN –
India Joint Ventures in Third Countries. RIS, New Delhi. P-89.
12. De,Prabir. (2010). India –ASEAN connectivity : an Indian perspective. New Delhi,
Research Information System for Developing countries. P.98
13. RIS Report. (2015). ASEAN – India Development and Cooperation Report 2015.
New Delhi, Research Information System for Developing countries.P.68- 69
14. Osius,Ted. (2013). Enhancing India ASEAN Connectivity. Centre for Strategic and
International studies. P 19
New Delhi. Research Information System for Developing Countries. P 69
16. http://www.indianexpress.com/news/govt-declares-golden-quadrilateral-
complete/896873/0
17. Project .(2011). These projects include projects for internal port-road connectivity,
industrial and freight corridors in addition to the Trilateral Highway and Kaladan
River projects, and a railway linking Delhi to Ha Noi. New Delhi : RIS .P.69
18. Ibid. P. 70
19. Moe Thuzar, Rahul Mishra, Francis Hutchinson, Tin Maung Maung Than, and
Termsak Chalermpalanupap. (September 2014). ADBI Working Paper Series No.
501. Connecting South and Southeast Asia: Implementation Challenges and
Coordination Arrangements. Tokyo 100-6008, Japan. P-13-14.
20. Jean-Francois Gautrin,.(2014). Connecting South Asia to Southeast Asia: Cross-
Border Infrastructure Investments. ADBI Working Paper Series No483. Asian
Development Bank Institute, Tokyo 100-6008, Japan, p-25.
21. Ibid. p.26
22. Ibid.p.33
Research Information System for Developing countries.P.70 – 71.
24. Ibid.p85
25. Ibid.p 87
26. Ibid.p 89
27. RIS Report. (2016). Air Connectivity Report. New Delhi: Research Information
System for Developing Countries. P.7
148

New Delhi: Research Information System for Developing Countries. P.68
29. Report.(2016). ASEAN – India: Air Connectivity Report. Research and Information
System for Developing Countries. P.91 retrieved from http://aic.ris.org.in
Research Information System for Developing Countries. P.68
31. AG.Leonard S.J. (2006). Tamil Nadu Economy. Chennai: MacMillan .P.297
32. Report. (2012). ASEAN – India Connectivity Report: India country Study.
New Delhi: Research Information System for Developing Countries. P.27
33. Sikri,Rajiv. (2009). India’s ‘Look East Policy’. Asia Pacific Review 16 (1), p136.
Doi:10.1080/13439000902957624.
34. ASEAN Secretariat.(2006). The Bangkok declaration.(3rd ed…).Handbook of
selected ASEAN political Document. Jakarta: ASEAN secretariat Pp 1-7
35. ADBI. (2014).ASEAN 2030 toward a borderless Economic Community. Japan:
Asian Development Bank Institute. P.39
36. Cheen, Lim Chze. (2012). Capacity Building workshop of PPP infrastructure
Development. Singapore: ASEAN Secretariat. P.46
37. Interim Report. (2013). Connecting South Asia and Southeast Asia. Tokyo:Asian
Development Bank and the Asian Development Bank Institute.P.16
38. Pushpanathan. S. (2012)ASEAN: Readiness in achieving the AEC 2015: Prospects
and challenges. In Sanchita Basu Das. (ed.). Achieving the ASEAN Economic
Community 2015 Challenges for member Countries and Business: Singapore:
Institute of Southeast Asian Studies (ISEAS).P.15
149

ASEAN ‐ Tamil Nadu: Trade Integration
and Co ‐ operation
Historical background
The Indian Ocean was once a melting pot of sorts with generous
intermingling of cultures, and for this, the notable contribution was made by the
South India, under the tutelage of the Chola Dynasty, which also included their
naval expeditions to Southeast Asia.
According to available inscriptions, the Chola King, Rajendra I, had

dispatched a navel expedition of “…many ships in the midst of the rolling
sea…” and was able to conquer a number of port cities of the Southeast Asian
of the Srivijaya Kingdom around 1025 AD. This naval expedition was a unique
event in what otherwise a peaceful and culturally exceedingly fruitful relation
of India with its neighbours in Southeast Asia. The last centuries of the first
millennium BC witnessed increasingly extending trade and cultural ties
between India and Southeast Asia, and this also included the peaceful spread of
Indic religions like Buddhism and Hinduism. This had left a deep and lasting
imprint on the emerging cultures of mainland and maritime Southeast Asia. The
first distinct South Indian influences are usually linked with the famous
Buddhist art of Amaravati, and the Pallava Grantha of present-day Indonesia’s
earliest inscriptions in the fifth century AD, followed by the strong impact of
Pallava and Chola art and architecture in Southeast Asia.1
Of the many archeological evidences that have been left behind in the
Southeast and East Asian region, the inscriptions in ‘Tamil’ are notable. There
exist eight major inscriptions in Tamil, and three definitely mention South
Indian merchant associations: the ninth century inscription from Takuapa on the
west coast of the Thailand, the inscription dated 1088 A.D. from Lobo Tua on
the west coast of Sumatra, and the thirteenth century inscription from Pagan in
Upper Burma. The earliest of the associations to have left a record was the
Manigramam, which appears to have been actively involved in transit trade
bypassing the Malacca Straits during a period of local political turmoil. The
latter two mentions - separated by perhaps a century and a half - involve the
Nanadeai branch of the Ayyavole, the major association which had also
attached the Manigramam in some way by the tenth century. Most of the
150

thirteenth-century Tamil inscriptions abroad do not appear to mention merchant

associations, perhaps reflecting the sharp decline in the economic power of
these associations within south India during the course of the thirteenth
century.2
Apart from the inscription of uncertain provenience held in Nakhom Si

Thammarat and the late thirteenth inscription from China, all of the Tamil
language inscriptions, and religious or other remains, suggest the establishment
of South Indian enclaves. This appears to be a result of the regional accessibility
directly across the Indian Ocean, since these areas are outside the core region
controlled by Srivijaya. This distribution is understandable: it is very unlikely,
given the degree to which Srivijayan rulers depended financially upon their
control of trade, that they would have invited into their core ports any
competing groups with great economic leverage.
MAP - CONNECTIVITY DURING CHOLAS PERIOD
151

However the book titled ‘Nagapattinam to Suvarnadwipa: Reflections on

the Cholas Naval Expeditions to Southeast Asia, deals with several fascinating
subjects; amongst them are:3
 the naval expeditions of the Cholas in the context of Asian history and
Indian Ocean trade system;
 South Indian merchant guilds, whose fame is strongly associated with
the Cholas and which are often regarded as a driving force behind the
naval expeditions of the Cholas;
 Developments in Sri Lanka and Indonesia, which were most directly
affected by Chola expansionism.
These subjects that has been covered in this book, are in fact a testimony
to the rich and strong ties that India, especially South India under the Chola
shared with the Southeast and East Asian region.
The state of Tamil Nadu has a distant past and archeological evidences
point that Tamil Nadu was the home for three famous kingdoms Cheras, Cholas
and Pallavas. The Sangam literature mentions that these dynasties stretched as
far as annexed parts of Srilanka, Sumatra, Java, Malaya in South East Asia and
Pegu island.4
The medieval period witnesses the European commercial interest in the

area of South India. The Portuguese, the Dutch, the French and the English
came in quick succession and established trading centres known as Factories’.
East India Company, which had established its factory at Masulipatnam in
1611, gradually annexed territories by encouraging enmity among native
rulers.5
Tamil Nadu was one of the first British settlements in India. The state is
the successor to the old Madras presidency between 1758 Christian Era to 1950
Christian Era. From 1950 to 1968 it was known as Madras State, Republic of
India .The composite states were later reorganised and the present Tamil Nadu
was formed. Tamil Nadu is bounded on north by Andhra Pradesh and
Karnataka, on the west by Kerala, on the east by the Bay of Bengal and on the
south by the Indian Ocean.6
152

Demography
Presently, Tamil Nadu covers an area of 1, 30,058 square kilometres with
a population of 7,881,463 million, going by the current figures. The state has
witnessed a growth of 15.6 percent in population. The density is 382 sq kms,
sex ratio 945 males per 1,000 females; literacy rate is 82.14 percent among
males and 65.46 percent among females. About 54 percent of the population is
urbanised and 42 percent are agriculture cultivators. Tamil Nadu is the
emerging hub of technology and modern lifestyle in India.7 Tamil Nadu’s Gross
State Domestic Product (GSDP) stood at US$ 161.1 billion in 2014-15.
Chart – 4.1: Tamil Nadu’s Gross Domestic Product for 2014-2015 (at US$ billion)
Chart – 4.2: Tamil Nadu's Net State Domestic Product for 2014-15 (at US$ billion)
153

Agriculture continues to be the backbone of the state economy, as it

provides livelihood security and food security. The overall crop prospects in
the state are bright. Rainfall in South West Monsoon season is normal and its
distribution is fairly even which help to recharge groundwater considerably. It
brings copious inflows into the state’s surface and builds up adequate storage.
The state government also makes arrangements for timely and adequate supply
of necessary inputs through primary agricultural cooperatives and timely loans.
This motivates farmers to double their efforts to take up agricultural activities
with greater vigour. This resulted in overall increase in gross domestic product
for the year 2015-16.
Despite this performance, the state agriculture sector continues to confront

the shrinkage of area cultivated, mismatch between the withdrawal and recharge
of groundwater, getting the due share of inter- state water from neighbouring
states, growing conversion of Agricultural land for non-agricultural users, wide
disparities in yield rate of crops across the state, balanced application of
chemical nutrients and continued reliance on farmers saved seed.8
Tamil Nadu has a coastline of 1,076 kilometres out of 8,118 kilometres

long coastline of the mainland of the country. There are three major ports and
fourteen minor ports. The minor ports contribute to the growth of Net State
Domestic Product (NSDP) of Tamil nadu by attracting more trade due to cheap
labour and quick turn over at times of congestion in the major ports. The minor
ports are situated in rural areas, development of these ports generates
employment in the rural areas. All minor ports in Tamil Nadu are anchorage
ports, where cargo is transshipped from the vessels at mid stream to shore and
vice versa through lighters and barges.9
Trade performance of Tamil Nadu

Trade performance can be measured from the export and Import details
given below; in table 4.1 which portrays the total export and imports of Tamil
Nadu in US$ in millions over the past two decades. The exports in 1991-92
from Tamil Nadu, while implementing the new Economic policy were US$
2,202.32 million and increased to US$ 22,803.11 million in 2007-08 when the
world was facing financial crisis. The year 2000-01 and 2001-02 does not show
an increase in exports it ranged between US$ 2,569.51 million to US$ 2,648.51
million. From 2003 onwards the exports have increased drastically to the extent
of four times with US$ 19,731.91 million in the year 2007-08. The imports in
154

1991-92 were 2,189.78 US$ million from thereon, show an increasing trend
which has increased ten times to US$ 50,305.33 million in the year 2008-09
when India was facing Financial Crisis. This shows that Financial Crisis did not
have any impact on Tamil Nadu trade and economic activities.
Table – 4.1 : Exports and Imports of Tamil Nadu from 1991-2009
YEAR EXPORT IMPORTS

( US $ Million) ( US $ Million)
1991-92 2202.32 2189.78
1992-93 2246.17 2385.30
1993-94 2896.75 2586.22
1994-95 3968.36 3994.30
1995-96 4733.31 5206.82
1996-97 4956.71 4215.94
1997-98 4447.66 9922.80
1998-99 4461.85 5581.78
1999-00 6227.11 5907.82
2000-01 2569.14 4119.87
2001-02 2648.51 3905.91
2002-03 5173.85 7376.13
2003-04 7196.27 9531.33
2004-05 7741.12 17524.45
2005-06 11586.62 25519.33
2006-07 14962.82 35118.77
2007-08 22803.11 47255.54
2008-09 19731.91 50305.33
Source: Compiled from Statistical Handbook (various issues), Department of Economics
and Statistics, Tamil Nadu.
Exports from Tamil Nadu by Sea

The goods exported from Tamil Nadu to other countries via sea from
Chennai, Tuticorin and other ports are given in the table 4.2 which depicts the
export from various Ports in Tamil Nadu. The goods exported from Chennai
port shows an increasing Trend. In the year 1999 – 2000, the exports have
come down to US$1,272.08 million but from thereon it shows an increasing
trend .The Tuticorin Port, being one of the major ports of Tamil Nadu, initially
in 1991-92 exported US$ 334.91 million which knock down to US$ 66.20
million in 1998-99. In the year 1999-2000 the export increased to US$4,297.02
155

million. The Tuticorin Port has largest storage facility and can handle both
containers and Cruise Ships.
Table - 4.2: Seaport-wise Exports from Tamil Nadu

(In Us $ Million)
YEAR CHENNAI TUTICORIN OTHER PORTS*

1991-92 1377.01 334.91 0.58
1992-93 1301.29 389.21 0.65
1993-94 1670.39 545.68 1.24
1994-95 2458.21 723.64 1.96
1995-96 2878.86 954.71 0.57
1996-97 3048.17 922.02 1.55
1997-98 3302.76 71.75 -
1998-99 3045.07 66.20 -
1999-00 1272.08 4297.02 -
2000-01 1719.25 - 3.18
2001-02 1728.70 - 0.97
2002-03 2776.30 1391.25 -
2003-04 5246.83 - -
2004-05 5426.71 904.93 0.45
2005-06 6913.16 2995.92 120.39
2006-07 8726.53 4333.67 246.66
2007-08 10578.76 9938.87 387.17
2008-09 12814.43 4706.32 254.81
* Other ports include Cuddalore, Nagapattinam,Rameswaram,Kolachel, PY-03Port,
Thirkadiyur,Ennore,Kundankulam and Valinokkam.
In the year 2000-2002 the table shows nil exports and gradually the
export activities are taken up in 2003-04 with 904.93 US$ million. There seems
to be increasing trend with improvement in the infrastructure of Port and the
export has increased to US$ 9,938.87 million at Tuticorin port. The harbour
basin also extends the protected water area. The other minor ports shows the
capacity to exports were around US$ 0.58 million with a small increasing trend
whereas the export in 2004-2005 has declined to US$ 0.45 million thereon
showing the increasing trend in 2005-06 from US$ 120.39 million to US$
387.17 million in the year 2007-08.
156

Imports to Tamil Nadu through Sea
Table - 4.3: Imports through Sea in Tamil Nadu

(in US $ Million)
YEAR CHENNAI TUTICORIN OTHER PORTS*
1991-92 1571.84 331.86 22.95
1992-93 1747.33 293.39 38.06
1993-94 1864.21 341.70 7.61
1994-95 2767.44 612.56 13.87
1995-96 3729.40 651.99 85.36
1996-97 3024.13 481.96 5.46
1997-98 4346.65 7467.85 5.55
1998-99 3924.96 754.13 4.37
1999-00 2138.17 2042.88 68.12
2000-01 2433.61 - 21.85
2001-02 2089.46 16803.09 -
2002-03 2705.63 2740.97 0.21
2003-04 6777.89 - -
2004-05 10708.97 2879.94 89.96
2005-06 18517.85 2021.53 365.46
2006-07 22072.26 5505.15 807.33
2007-08 29450.81 8449.59 475.63
2008-09 33534.86 7896.64 829.98
.* Other ports include Cuddalore,Nagapattinam,Rameswaram,Kolachel,PY-03Port,
Thirkadiyur, Ennore, Kundankulam and Valinokkam.
The table 4.3 shows the imports from other countries that enters Tamil
Nadu by various sea routes at the major ports of Chennai, Tuticorin and other
ports. The table 4.3 depicts the sea - wise Import of goods from various ports in
Tamil Nadu. The Chennai Port is the major port which serves as a stopover and
has large storage capacity for imported goods. The data shows that imports have
increased from US$ 1,571.84 million in the year 1991-92 to US$ 33,534.86
million in 2008-09. This shows the impact of globalisation. The Tuticorin Port
imports have been least during 1992-93 and have been highest imports during
2001-2002 with US$ 16,803.09 million. In the year 2000-01 and 2003-04 there
were no imports. This could have been due high customs Duty and Excise Duty.
In the coming year, the imports show an increasing trend reaching US$
8,449.59 million in the year 2007-08.
157

The imports in the other ports are least to the extent of 0.21US$ million in
the year 2002-03 and highest to the extent of 829.98 US$ million in the year
2008-09. These ports serve as captive ports and allied facilities such as jetties,
mooring system etc are active through private sector participation.
The table 4.4 shows the value of foreign trade of Tamil Nadu to ASEAN
countries. The data depicts that the export to ASEAN has increased from US$
27.21 million to US$ 533.14 million and its percentage share ranges from 0.44
percent to 2.70 percent. It also shows an increasing trend. The imports from
ASEAN to Tamil Nadu also show an increasing trend from US$ 120.55 million
to US$ 2,452.69 million in the year 2007-08 and its Share percentage ranges
with a marginal increase ranging from 0.02 percent to 0.08 percent.
Table - 4.4: Foreign Trade – Tamil Nadu to ASEAN
EXPORT (in US $ Million) IMPORT (in US $ Million)

YEAR ASEAN % SHARE ASEAN % SHARE
1999-00 27.21 .044 120.55 0.02
2000-01 60.84 2.37 230.72 0.06
2001-02 72.74 2.75 298.01 0.08
2002-03 - - 220.27 0.03
2003-04 105.49 1.36 1132.39 0.06
2004-05 147.27 1.27 1305.07 0.05
2005-06 218.4 1.46 2183.73 0.06
2006-07 375.49 1.65 2733.78 0.06
2007-08 533.14 2.70 2452.69 0.05
CAGR from 2000- 36.35 40.17
01 to 2008-09
Source :Compiled from Statistical Hand book (various Issues), Department of
Economics and Statistics, Tamil Nadu.
The table 4.5 portrays the value of exports through Seaports from Tamil
Nadu to ASEAN member countries from 1999-2000 to 2008-09. Tamil Nadu
exports goods worth US$100.62 million to Indonesia and US$ 50.96 million to
Malaysia, US$ 85.59 million to Philippines, US$ 106.5 million to Singapore,
US$ 83.19 million and US$ 72.74 million to Vietnam for the year 2008-09.
Over all the export to ASEAN countries show an increasing trend.
158

Table - 4.5: Tamil Nadu Exports through Seaports to ASEAN

(in US $ Million)
Year Indonesia Malaysia Philippines Singapore Thailand Vietnam

1998-99 9.85 19.49 4.11 51.31 14.58 14.36
1999-00 1.34 4.18 0.01 8.2 3.97 0.87
2000-01 12.79 20.36 1.18 6.56 4.18 2.95
2001-02 1.63 17.75 4.77 13.18 6.52 9.19
2002-03 - - - - - -
2003-04 - - - - - -
2004-05 - 13.13 9.79 7.57 28.93 22.92
2005-06 - 11.97 14.91 9.49 58.05 29.14
2006-07 8.61 24.73 31.36 54.99 54.76 28.04
2007-08 39.26 38.52 51.44 63.62 75.3 59.89
2008-09 100.62 50.96 85.59 106.5 83.19 72.74
CAGR from 41.03 16.52 104.22 59.13 64.62 70.61
2000-01 to
2008-09
Table - 4.6: Exports through Tamil Nadu Airports to ASEAN

(in US $ Million)

1998-99 0.58 1.87 0.45 38.59 3.31 1.51
1999-00 - 2.89 0 5.69 0.04 -
2000-01 - 1.64 0.03 9.77 1.41 -
2001-02 0.0034 2.75 0.01 9.92 1.24 0.04
2002-03 - 2.45 - 8.46 - -
2003-04 - 2.48 - - - -
2004-05 - - - - - 12.24
2005-06 3.84 - - 7.23 - 10.16
2006-07 1.99 - - 1.77 2.65 9.5
2007-08 1.99 - - 17.4 8.45 15.66
2008-09 4.14 - - 9.36 5.44 14.59
CAGR from 314.10 -1.16 34.41 225.39
2000-01 to
2008-09
159

The table 4.6 shows the value of goods exported through Tamil Nadu by
Air to ASEAN countries. The data shows the export of US$ 4.14 million to
Indonesia, US$ 9.36 million to Singapore, US$ 14.59 million to Vietnam and
US$ 5.44 million to Thailand in the year 2008-09 whereas the export to
Malaysia and Philippines was nil from 2004-05 to 2008-09.
Table - 4.7: Imports through Tamil Nadu Seaports from ASEAN

(in US $ Million)

1998-99 71.69 204.72 2.39 169.38 45.65 213
1999-00 12.8 45.67 - 40.59 11.09 -
2000-01 22.24 61 - 35.43 4.74 -
2001-02 25.15 11.04 0.85 97.76 9.87 -
2002-03 - - - 115.51 - -
2003-04 - - - - - -
2004-05 373.46 243.7 18.92 183.39 80.34 -
2005-06 376.75 129.2 - 277.59 244.84 -
2006-07 469.63 734.9 16.56 375.4 151.49 -
2007-08 791.48 829.75 14.91 468.18 174.2 -
2008-09 679.92 644.64 52.27 543.15 153.32 261
CAGR 63.00 40.05 47.69 64.32
from
2000-01
to 2008-
09
The table 4.7 shows the Value of import through Tamil Nadu Sea ports
from ASEAN member Countries. It is evident from the from the data that
Tamil Nadu is the recipient of highest imports of US$ 679.92 million from
Indonesia, US$ 644.64 million from Malaysia, US$ 543.15 million from
Singapore, US$ 261 million from Vietnam,153.32 US$ million from Thailand
and 52.27 US$ million from Philippines. The ports provide exclusive facilities
for import of goods, oil, natural gas and coal.
160

Table - 4.8: Imports through Tamil Nadu Airports from ASEAN

(In Us $ Million)

1998-99 0.36 243.69 1.33 58.44 2.39 -
1999-00 0.04 0.01 - 10.34 0.0009 --
2000-01 - 0.1 - 57.68 53.58 -
2001-02 - 0.41 0.06 92.77 0.86 -

2002-03 - - - 84.72 - -
2003-04 - - - - - -
2004-05 - - - 206.09 - -
2005-06 2.71 13.1 - 260.87 - -
2006-07 9.49 45.05 - 172.02 - -
2007-08 4.72 72.07 - 368.28 10.18 -
2008-09 3.92 47.04 - 325.8 - -
CAGR 140.87 28.06
from
2000-01
to 2008-
09
Economics and Statistics, Tamil Nadu
The table 4.8 shows the value of import from ASEAN countries to Tamil
Nadu by Air. Singapore has been the largest importer of US$ 325.8 million
worth goods to Tamil Nadu for the year 2008-09 which shows a decline of US$
23,20 million, whereas imports from Malaysia has been US$ 47.04 million and
import of US$ 3.92 million from Indonesia.
Export import From Tamil Nadu to ASEAN via Sea and Air
The total value of exports and imports from Tamil Nadu to ASEAN
countries consist of goods both labour - intensive and technology- intensive
goods. The main item of export through sea ports are food products and
transport equipments. Tamil Nadu is becoming the destination of manufacturing
Automobile components. Major exporters are Hyundai, Ford, Toyota, Honda,
Mitsubishi, Visteon and others. Tamil Nadu has also made a place in
international textiles especially in handlooms and hosiery.10
161

Table - 4.9: Exports and Imports through Sea and Air from Tamil Nadu
EXPORTS (US $ Million ) IMPORTS (US $ Million )

YEAR SEA AIR TOTAL SEA AIR TOTAL
1991-92 1712.5 489.82 2202.32 1926.65 263.13 2189.78
1992-93 1691.15 555.017 2246.17 2078.78 306.52 2385.3
1993-94 2217.3 679.447 2896.75 2213.51 372.71 2586.22
1995-96 3183.8 784.554 3968.36 3393.86 600.44 3994.3
1996-97 3834.15 899.165 4733.31 4466.75 740.07 5206.82
1997-98 3971.75 137.882 4109.63 3511.56 704.38 4215.94
1998-99 3374.54 1073.14 4447.66 11820.1 793.4 12613.5
1999-00 3111.27 1350.58 4461.85 4683.46 898.32 5581.78
2000-01 5569.09 658.016 6227.11 4249.17 1658.65 5907.82
2001-02 1722.42 846.718 2569.14 2455.46 1664.41 4119.87
2002-03 1729.67 918.839 2648.51 18892.5 1795.1 20687.6
2003-04 4167.55 1006.3 5173.85 5446.81 1929.53 7376.34
2004-05 5246.83 1218.78 6465.61 6777.89 2896.31 9674.2
2005-06 6332.08 1409.03 7741.12 13678.6 3845.9 17524.5
2006-07 10029.5 1556.91 11586.4 20904.8 4614.5 25519.3
2007-08 13306.9 1665.74 14962.6 28384.7 6734.1 35118.8
2008-09 20904.8 1898.31 22803.1 38376 8879.5 47255.5
2009-10 17775.6 1956.36 19731.9 42261.5 8043.8 50305.3
The table 4.9 gives the summary of the value of exports and imports
through Sea and Air from Tamil Nadu. The table shows an increasing trend
both in terms of Exports and Imports over the years. The imports by sea are
twice the exports whereas; the imports by Air are six times more than the
exports from Tamil Nadu for the year 2009-2010.
Commodities Wise Exports from Tamil Nadu By Sea

Tamil Nadu has established a strong trade link with the ASEAN countries.
The state needs to develop both hard and soft components. The table 4.10
shows the commodities and products that are exported through sea ways to
other countries from Tamil Nadu. It is evident that cement and ceramics have a
high share of export with 4.36 percent of share. The next highest demands are
for transport equipment. The demand for the other commodities shows constant
162

over the years. The table 4.10.1 shows the total commodities exported from
Tamil Nadu through Sea to ASEAN Countries. It is evident that there has been
high percent of share for transport equipment which is demanded in ASEAN
countries, followed by high percent of share for cement and ceramic products,
tobacco products, agro - based products, rubber and marine products.
Table - 4.10: Share Export (%) of Certain Commodities through Tamil Nadu
Seaports from 1991-2000
1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999-

Commodity 1992 1993 1994 1995 1996 1997 1998 1999 2000
Agro based 1.09 0.94 0.83 1.02 1.29 1.06 0.57 0.19 0.98
products
Alcohol and 3.04 1.96 2.75 2.54 2.26 1.91 0.40 0.22 0.45
beverage
Alumnium & 0.00 0.00 0.07 0.12 0.07 0.04 0.11 0.06 0.14
products
Cement and 0.43 0.79 0.78 0.71 0.57 0.40 1.95 1.17 4.36
Ceramics
Cereals 0.29 0.02 0.06 0.05 0.65 0.68 0.32 0.10 0.25
Chemicals 1.49 1.20 1.16 1.52 1.60 1.64 1.20 1.08 2.51
Cotton 0.52 0.18 0.40 0.00 0.05 0.08 6.92 3.62 3.42
Food Products 5.33 7.40 6.87 5.63 5.94 5.77 1.08 0.60 0.85
Pharmaceuticals 1.62 1.71 1.69 1.63 2.08 2.21 2.09 0.93 0.87
products
Gems & jewellery 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.01
Iron & Steel 4.72 0.04 0.91 1.39 2.04 1.90 1.28 0.45 0.13
Leather 9.09 8.39 8.47 3.81 4.06 3.54 1.10 0.74 1.19
Marine products 4.08 3.43 5.31 6.31 4.92 6.03 5.97 3.98 0.26
Paper/ wood 0.39 0.49 0.50 0.79 0.80 0.61 0.35 0.21 0.47
products
Plastics 0.29 0.37 0.47 0.84 1.36 1.06 0.83 0.31 0.89
Rubber 1.05 1.81 1.58 1.76 1.53 1.55 1.26 0.60 0.75
Sports goods 0.25 0.07 0.09 0.10 0.16 0.14 0.03 0.03 0.05
Textiles 0.86 0.86 0.90 1.00 1.14 0.93 0.28 0.28 0.30
Tobacco 1.40 1.00 0.62 0.14 0.14 0.17 0.12 0.12 0.36
Transport 1.49 1.70 2.13 2.14 1.57 1.70 0.82 0.82 2.29
Equipment
Source : Compiled from ASEAN-India Connectivity Report, India Country
Study,Research and Information System for Developing Countries.
163

Table - 4.10.1: Share Export (%) of Certain Commodities through Tamil Nadu
Seaports from 2001-2009
2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008-

COMMODITY 2002 2003 2004 2005 2006 2007 2008 2009
Agro based products 0.89 0.90 - 1.49 1.32 1.39 1.07 1.58
Alcohol and beverage 0.37 0.32 - 0.47 0.37 0.62 0.61 0.85
Alumnium & products 0.27 0.24 - 0.33 0.17 0.20 0.11 0.15
Cement and Ceramics 3.76 2.98 - 2.79 2.12 2.29 1.46 2.07
Cereals 0.34 0.44 - 0.68 0.30 0.30 0.50 0.91
Chemicals 3.47 1.98 - 3.73 2.44 2.29 1.71 2.12
Cotton 2.89 2.78 - 2.66 1.95 2.09 1.63 1.55
Food Products 0.92 0.78 - 0.96 0.82 0.71 0.58 1.01
Pharmaceuticals products 1.69 0.97 - 1.24 1.14 1.19 0.75 1.07
Gems & jewellery 0.01 0.01 - 0.21 0.01 0.01 0.01 0.01
Iron & Steel 0.21 0.82 - 2.77 1.73 0.95 0.44 1.17
Leather 1.70 0.99 - 0.80 0.70 0.57 0.46 0.60
Marine products 0.22 1.40 - 3.59 2.50 1.81 1.11 1.08
Paper/ wood products 0.95 0.76 - 1.03 0.80 0.64 0.36 0.49
Plastics 0.59 0.49 - 1.04 0.87 0.76 0.51 0.55
Rubber 1.56 1.68 - 1.89 1.51 1.37 0.91 1.19
Sports goods 0.06 0.03 - 0.03 0.02 0.01 0.01 0.02
Textiles 0.27 0.14 - 0.33 0.16 0.18 0.10 0.15
Tobacco 0.29 0.12 - 0.11 0.82 1.74 1.52 2.87
Transport Equipment 2.55 1.90 - 5.95 7.56 7.21 5.85 12.59
Source : Compiled from ASEAN-India Connectivity Report, India Country Study,
Research and Information System for Developing Countries.
Commodities Wise Exports from Tamil Nadu by Air

The profile of goods that are imported /exported from Chennai are
garments, leather and electronics constitute the major export commodities,
whereas, electronics, machineries, automobile components, telecommunication
equipments, computer hardware, white goods, etc. consist of major import
commodities. As on date, on an average 720 Metric Tonnes (Exports 350 MT
and Imports 370 MT) is being handled on a daily basis at Chennai Air Cargo
complex.11
The table 4.11 shows the sum total of products which are exported through
Tamil Nadu by air to ASEAN countries. On analysis it is evident there has been
considerable increase in Share percentage of export. The leather products
exported by Air seem to bear high percent of share whereas for the remaining
164

products the share percentage ranges from 0.001 percent to 1.211 percent of
share for the year 1999-2000.
Table - 4.11: Share Export (%) of Certain Commodities through Tamil Nadu
Airports from 1991-2000
1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999-

COMMODITY 1992 1993 1994 1995 1996 1997 1998 1999 2000
Agro based 0.000 0.000 0.000 0.000 0.004 0.011 0.017 0.005 0.013
products
Alcohol and 0.015 0.022 0.004 0.010 0.011 0.010 0.005 0.001 0.002
beverage
Aluminum & 0.000 0.000 0.000 0.000 0.000 0.000 0.001 0.001 0.007
products
Cement and 0.017 0.020 0.024 0.021 0.019 0.017 0.004 0.001 0.003
Ceramics
Cereals 0.000 0.000 0.001 0.000 0.000 0.000 0.000 0.000 0.000
Chemicals 0.141 0.198 0.211 0.181 0.194 0.201 0.124 0.196 0.190
Cotton 0.001 0.000 0.000 0.000 0.000 0.000 0.655 0.187 0.288
Food Products 0.015 0.000 0.001 0.001 0.000 0.000 0.010 0.379 0.000
Gems & jewellery 0.273 0.289 0.276 0.289 0.378 0.257 0.289 0.189 0.013
Iron & Steel 0.242 0.000 0.001 0.000 0.001 0.002 0.006 0.004 0.003
Leather 15.12 16.03 14.26 11.25 9.912 5.642 3.186 1.166 1.211
Marine products 0.095 0.157 0.243 0.239 0.281 0.249 0.176 0.112 0.048
Paper/ wood 0.035 0.038 0.037 0.063 0.033 0.032 0.060 0536 0.008
products
Pharmaceuticals 0.167 0.209 0.377 0.562 0.903 1.340 0.671 0.800 0.492
products
Plastics 0.040 0.044 0.041 0.050 0.066 0.087 0.005 0.006 0.007
Rubber 0.016 0.024 0.026 0.053 0.038 3.230 0.065 0.023 0.043
Sports goods 0.065 0.132 0.098 0.109 0.072 0.126 0.005 0.000 0.002
Textiles 0.143 0.128 0.133 0.107 0.100 0.098 0.082 0.050 0.052
Tobacco 0.005 0.000 0.008 0.003 0.000 0.001 0.001 0.001 0.001
Transport 0.046 0.007 0.063 0.063 0.085 0.090 0.054 0.049 0.114
Equipment
165

Table - 4.11.1: Share Export (%) of Certain Commodities through Tamil Nadu
Airports from 2001-2009
2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008-

Commodity 2002 2003 2004 2005 2006 2007 2008 2009
Agro based products 0.021 0.020 - 0.017 0.006 0.001 0.003 0.007
Alcohol and beverage 0.025 0.024 - 0.023 0.002 0.001 0.002 0.001
Alumnium & products 0.008 0.008 - 0.006 0.004 0.007 0.007 0.010
Cement and Ceramics 0.003 0.000 - 0.009 0.004 0.003 0.002 0.002
Cereals 0.000 0.000 - 0.000 0.002 0.000 0.000 0.000
Chemicals 1.994 2.197 - 1.081 0.805 0.642 0.599 0.711
Cotton 0.500 0.236 - 0.204 0.136 0.092 0.061 0.070
Food Products 0.012 0.012 - 0.014 0.012 0.012 0.007 0.011
Gems & jewellery 0.006 0.000 - 0.000 0.004 0.001 0.002 0.019
Iron & Steel 0.019 0.012 - 0.012 0.012 0.007 0.004 0.008
Leather 4.254 2.021 - 1.604 0.973 0.798 0.529 0.699
Marine products 0.291 0.156 - 0.193 0.138 0.127 0.092 0.132
Paper/ wood products 0.026 0.028 - 0.017 0.023 0.006 0.005 0.013
Pharmaceuticals products 1.977 0.603 - 0.842 0.610 0.437 0.326 0.333
Plastics 0.034 0.024 - 0.026 0.016 0.030 0.920 0.014
Rubber 0.142 0.092 - 0.040 0.043 0.024 0.031 0.038
Sports goods 0.010 0.004 - 0.000 0.004 0.001 0.003 0.007
Textiles 0.371 0.056 - 0.046 0.016 0.012 0.010 0.010
Tobacco 0.005 0.000 - 0.000 0.000 0.000 0.000 0.000
Transport Equipment 0.206 0.168 - 0.233 0.135 0.111 0.061 0.075
The table 4.11.1 shows the sum total of products which are exported
through Tamil Nadu by air to ASEAN countries. It is evident there has been
considerable increase in Share percentage of export. The leather products
exported by Air seem to bear high percent of share whereas for the remaining
products the share ranges from 0.001 percent for alcohol and beverage since it
involves high risk to carry. However, 0.711 percentage of share for the
Chemicals and 0.699 percentage of share is for leather goods during the year
2008-2009.Tobacco products are totally banned.
166

Commodities Composition of Imports of Tamil Nadu
Table - 4.12: Commodity Composition of Imports of Tamil Nadu
Commodity CAGR CAGR

1991- 1995- 2000- 2005- 2008- (1991-92 2000-01
1992 1996 2001 2006 2009 to 1999- to
00) (%) 2008-09
(%)
Aluminum & products 0 0.1 0.5 0.5 0.5 73.17 48.86
Alcohol and beverage 0 0 0 0.2 0.1 - -
Leather 0.2 1.3 3.2 0.9 0.7 46.54 14.4
Cashew 4.9 4.1 0 0 0 -100 -
Ceramics products 0.1 0.1 0.4 0.4 0.3 28.79 41.59
Cotton 0.1 2.2 0.2 0.6 0.3 7.9 46.31
Cosmetics/toiletries 0 0 0.3 0.1 0.1 - 27.97
Gems & jewellery 0.1 0.7 17.3 4 5.1 99.61 20.2
Iron & Steel 9.2 5.7 4.7 5 4.4 -2.8 42.04
Pharmaceuticals products 0.3 0.8 0.2 0.2 0.5 1.41 68.82
Paper/ wood products 1.5 1.1 2.7 1.5 1.6 16.22 32.77
Plastics 2.9 1.9 2 1.5 1.4 2.22 35.32
Rubber 0.8 1.6 1.3 0.8 1 12.47 36.71
Cement 0 0 0.4 0.2 0.3 83.48 37.49
Transport Equipment 4.2 3.6 2.3 2.1 3.1 0.99 49.42
Printed books, Newspaper, 1.3 0.9 0.1 0.1 0.2 -13.78 53.24
Journals,etc
Vegetable oil and animal fats 0.6 1.8 1.4 1.3 1.4 22.61 41.87
Electrical Products 2.7 4.7 9.6 9.2 10.7 25.53 45.17
Chemicals 12.2 9 6.7 4.5 4.5 -3.27 34.99
Fertilisers 0 0.3 0.5 0.7 0.6 152.36 44.66
Non-ferrous metals 1.7 2.3 1.6 1.5 1.5 6.18 42.01
Cereals 0.4 0.6 0 0 0 0.14 45.99
* share in state’s imports.
Sources: compiled from Statistical HandBook (various issues),Department of Economics
and Statistics,Tamilnadu.
The list of items Imported from ASEAN are dissimilar and the main
imported commodities are ores and minerals, chemicals, engineering goods,
books and journals. The table 4.12 gives the composition of imports of Tamil
Nadu for every five year period and its Compound Aggregate Growth rate. The
growth rate from 1991-to 2000 shows there has been decline in imports of
cashew, iron and steel, chemicals printed books and news paper while, there has
167

been a high percent of growth rate in importing fertilisers, gems and jewellery,
cement and aluminum products. The CAGR for the next decade that ie from
2000-01 to 2009 shows that the growth rate over the years for almost all product
ranges from 20 percent to 68.82 percent. The CAGR for the sub period 1991-99
shows the growth of 46.54 percent for leather, while the growth rate of leather
products declined to 14.4 percent for the sub period 2000 – 2009
Industrial Development of Tamil Nadu

Traditionally, Tamil Nadu has been in the vanguard of industrialization
among the Indian States. The State has a strong presence in textiles,
engineering, automobile production and auto components manufacture and
recently information and Bio Technology sectors. Tamil Nadu has always been
a safe haven for investors owing to a favourable business climate, excellent
infrastructure for trade and investment, outstanding law and order maintenance,
peaceful industrial relations and healthy socio-economic reforms. Among the
Indian States Tamil Nadu ranked
 First in Number of Factories.

 First in number of workers employed in factories
 Third in Gross Industrial Out put
 Third in Net Value Addition
Rapid industrial development coupled with modernization of agriculture is

a necessary condition for launching the State economy into a self sustaining
economic growth. The industry plays a huge role of employment provider and
breaks the vicious cycle of poverty. It is a sizable Foreign exchange earner, the
source of productivity and the multiple roles of industry. Industry brings about
structural changes and serves as an engine for economic growth. The
Government has been fostering and nurturing the Industrial sector with
commitment and resourcefulness considering its immense benefits that flow in
to state.
The National Manufacturing Policy 2011 makes it’s mandatory that the
industries to be started are to be employment intensive, those producing capital
goods. The vision 2023 of Tamil Nadu in synchronisation with NMP (National
Manufacturing Policy) aims at increasing the income of the manufacturing
sector to 22 percent by giving a thrust to starting new industrial units in
168

backward regions and encouraging build up of infrastructure and skills. The

structural shift in manufacturing following the launching of economic reform
during 1991 resulted in a boost in the investment inflow and employment
generation by establishing new industries and expanding the existing one with
new and cost effective technologies from other countries. The Factory sector
underwent structural change in the industrial parameters.
Table – 4.13: Automobile Firms Base in Tamil Nadu ( In Nos)
Category 2005-06 2006-07 2007-08 2008-09 2009-10 2010- 11

/Company
Heavy Vehicle Ford 27119 414465 38287 26708 39222 112615
Hyundai 260466 314654 367242 502218 589536 594601
Nissan 0 0 0 0 0 75029
BMW 0 144 2107 2426 2765 5740
Hindustan motors 15115 13420 12240 8928 10656 9757
Passenger 302700 369683 419876 540280 642179 797742
Vehicles (a) (23) (24) (24) (30) (27) (27)
All india Passenger 1309300 1545223 1777583 1838593 2357411 2987296
Vehicles Total
Ashok Leyland 65085 83549 84006 54049 64673 95337
JCBL 0 0 0 0 179 67
Kamaz Vectr 123 61 43 10 0 0
Motors
Dalmier 4958 4325 4060 2378 4189 4826
Hindustan Motors 338 201 16 54 278 345
Commercial 70504 88136 88125 56491 69319 100575
Vehicles (B) (18) (17) (16) (14) (12) (13)
All India 391083 519982 549006 416870 567556 752735
Commercial
Vehicles Total
Two and Three 1,397,287 1,546,081 1,312,802 1,366,445 1,588,158 2,129,592
Wheelers (C)
Tamil Nadu Total 1770491 2003900 1820803 1963216 2299656 3027909
Production (18) (18) (17) (16) (16) (17)
(A+B+C)
All India Automobile 9743503 11087997 10853930 11172275 14057064 17916035
production
Note: Figures in Parenthesis shows the share of Tamil Nadu in All India Production,
Source: Society of Indian Automobile manufacturers. Retrieved from
file:///C:/Users/USER/Desktop/Industry.pdf
169

Chart – 4..3: Total Heavy vehicles prod

duced by the Companies.
C
600000
5000000
4000000 Ford
3000000
2000000 Hyundai
10
00000 Hindustan Motors Nissan
0 Nissan
Ford BMW
2005 ‐2006
2006 ‐ 07
2007 ‐ 08
2008 ‐ 09
2009 ‐10
2010 11
2010 ‐11
Hindustan Mo
otors
Chart - 4.4: The Totall Production activities in Tam

mil Nadu
200
000000
180
000000 Total heeavy Vehicles
160
000000
140
000000
All indiaa Passengers Veh
hicle
120
000000
Total
100
000000
80
000000 All Indiaa Commercial
60
000000 Vehiclees Total
40
000000 Total Prroduction Tamil N
Nadu
20
000000
0
All Indiaa Automobile
2005 ‐ 2006 ‐ 2007 ‐ 20
008 ‐ 2009 ‐ 2010
0 ‐ Production
2006 07 08 09 10 11
1
Tamil Nadu has

T h the highest number off factories whhen comparedd to the
State of
o Maharashtrra, Gujarat, Karnataka
K and
d Andhra Praddesh. The num mber of
factoriies in Tamil Nadu
N is abouut 36,996 whiich constitute 17.10 percennt. The
autom
mobile industryy shows a steaady performan
nce in the statee with Governnment‘s
constaant support which nurtuured Chennaii as a veryy Cost - efffective
manuffacturing hub. Chennai dons the top global automobilee like Ford, Hyyundai,
BMW W, Renault Nisssan and Mittsubishi HM, are some off the top autoomobile
compaanies to be meentioned.
170

The table 4.13 shows the Automobile firms base in Tamil Nadu. Ford, one
of the early original equipment manufacturers, set up factory near Chennai
because of the facilities available in Tamil Nadu and this made Gujarat as the
second choice for setting up the factory. The data shows the increasing trend in
the manufacture of the Automobile industry. Hyundai runs its plant at 98
percent capacity and plans to explore more opportunities for expansion.
Hindustan Motors are competitors in manufacturing heavy vehicles. In
manufacture of Passenger vehicles Ashok Leyland is not behind. Daimler
manufactures a moderate number of vehicles. The total passenger vehicle shows
a growing trend which has resulted in growth of commercial vehicles, two
wheeler and three wheelers. The overall production of automobiles in Tamil
Nadu shows an increasing trend was due to better infrastructure, availability of
funds, raw materials, professionals, skilled labours, upgraded storage facility,
low rate of interest and other subsidies provided by the manufacturers and State.
Tamil Nadu is gearing up, it shows the brighter light of investors by

unveiling the automobile policy that focuses future development and
consolidation of automobile and component industries. The state government is
also planning to bring out new bio - tech and textile policies and does not want
to lose out in the ‘Make in India’ race. 12
The state attracts several new emerging industries like Mineral based
industries, engineering, leather, pharmaceuticals, cotton industries and hosiery,
readymade garment industries, wood products, agro based industries, chemical
based industries, electronics, software, consumable, durable, tourism, hotels and
financial sources provided to the special economic zone industries. The list of
Special Economic Zone are given below;
Table – 4.14: List of Operation Special Economic Zone’s in Tamil Nadu
Industry Location Number

IT hard ware &Bio informatics Chennai, Kancheepuram, 10
Chengleput, Coimbatore
Automative Chennai 1
Apparel and Fashion accessories Chennai,Cheyyar 2
Telecom equipment R&D Sriperumbudur 1
Electronic Hardwares Sriperumbudur, Oragadam 3
Hitech Engineering Coimbatore 1
Source: Compiled from Research and Information System based on TIDCO.
171

Table 4.14 shows the share of State Industrial Promotion Corporation of

Tamil Nadu (SIPCOT) which caters to the need of large scale industry in the
state and also acts as a nodal agency for implementing schemes announced by
the government. SIPCOT has developed 19 industrial complexes including
seven Special Economic Zones in 12 districts by acquiring 27000 acres of land
for this purpose, out of which 20806 acres are already allotted to 2184 industrial
units attracting 1.00 lakh crores of investment and creating employment
opportunity for 5.55 lakh persons. The Government of Tamil Nadu has allotted
100 acres to SIPCOT to establish Industrial Parks.
Table - 4.15: Investments Plan under Vision 2023
Sector Investment Requirement

Rs. Crores
Energy 450,000
Transport 370,000
Industrial and Commercial 160,000
Urban infrastructure 275,000
Agriculture 40,000
Human Development 30,000
Sub Total 13,25,000
General and Social Infrastructure projects 100,000
Capital improvement to existing projects 75,000
Subtotal 1,75,000
Total 15,00,000
Source :Vision Document,2023 (Phase-II),Government of Tamil Nadu.
The table 4.15 depicts the upcoming projects proposed by the Late Chief
Minister of Tamil Nadu Dr. Jayalalitha as “The Vision 2023” which identified a
set of corridors for development that will facilitate growth of industries in an
equitable manner across the whole region of the State. The proposed
development of industrial parks and corridors come together with the proposed
development of Rail and Road network in order to provide seamless
connectivity. The industrial goods are classified as basic goods capital goods
and intermediate goods and consumption is the end to which all economic
activity is directed and investment today the means of ensuring that
consumption can be enjoyed in future.
172

Investment Opportunities in Tamil Nadu

Foreign Direct Investment (FDI) is a means to support domestic
investment for achieving a higher level of economic development. The state of
Tamil Nadu ranks third in the flow of Foreign Direct Investment next to
Maharashtra and New Delhi. Formulation of a new Industrial Policy with many
innovative features promotes industrial development and create an industry
friendly environment to enable the State to achieve the top position of
industrialisation in India. These investments are in areas like power,
manufacturing industries, textiles, road, automobile, software, mining, agro
based industries, hotel etc.13
Table – 4.16: Foreign Direct Investment Inflow to Tamil Nadu

(US$ Million)
Year Investment Inflow Growth percentage
2008 - 09 7757 -
2009 - 10 3653 -52.91
2010 - 11 6115 67.39
2011 – 12 6711 9.74
2012 – 13 15252 127.26
2013 – 14 12595 -17.42
2014 - 15 23361 85.47
2015 - 16 29781 27.48
Source : Compiled from http:dipp.nic.in/FDI-statistics
Chart - 4.5: Foreign Direct Investment Inflow to Tamil Nadu
35000
30000
25000
20000
FDI Infow in Tamil Nadu
15000
Growth rate of FDI
10000
5000
0
‐5000 2008 2009 2010 2011 2012 2013 2014 2015
173

Chart - 4.6: Foreign Direct Investment Inflow to Tamil Nadu
FDI Infow in Tamil Nadu
25000
20000
15000
10000 FDI Infow in Tamil Nadu
5000
0
2008 2009 2010 2011 2012 2013 2014
Chart -4.7: Foreign Direct Investment Inflow to Tamil Nadu
Growth Rate of FDI in Tamil nadu
150
100
50
Growth rate of FDI in
Tamil nadu
0
‐50
‐100
Table 4.16 depicts the Foreign Direct Investment inflow to Tamil Nadu.
There has been an increase in investments except in the year 2009 – 2010 when
the inflow of investment has decreased by - 52 percent. It was the period
when Asian Countries were facing Financial Crisis. Tamil Nadu received
double the investment in 2012 -13 which was the outcome of the better
facilities, better opportunities, labour intensive, better returns, tax concessions,
intensive packages and uninterrupted power supply. The Governments
174

initiatives to attract sizeable flow of investment in to the country through

Foreign Direct Investment are made through the FDI policy. To ensure that
India remains an increasingly attractive and investor friendly destination, Socio
- Economic and political stability are also one of the favourable conditions to
attract the investors to the state.
The Reserve Bank of India’s Report says that the equity inflows are more
stable and bring in managerial skill and technical expertise together with
investment into the country. The Ministry of Industry and Commerce had
released the State wise industrial investment proposals for some industrialized
states says Tamil Nadu has filed a total number of industrial memorandum at a
proposed investment of 3.96 lakhs crores to provide direct and indirect
employment to 22.28 lakh persons. Among the states Maharashtra ranks first
with 43.54 lakhs, Odisha has highest investment. Among States highest number
of letter of Intent and Direct Industrial licence has been issued by Tamil Nadu
with highest employment opportunities. The Automobile industry ranks eight
among the top ten sectors attracting highest FDI inflow into India.14
Chart –4. 8: Investment Opportunities in the District
Cloud Based services Hard ware Urban and Rural –using

Manufacturing GIS, Remote sensing
Knowledge Process Data/Computer E-Governance Initiatives

OutSourcing Centres
IT Based Education
and Training
Source: Compiled from Tamil Nadu investor meet 2015, Vision Document, 2023 (Phase
–II), Government of Tamil Nadu. file:///C:/Users/USER/Desktop/Industry.pdf
The chart depicts the investment opportunities in the district for various
industries which is the symptom for development and growth. Thus ASEAN is
a power house of economy and it provides a diverse market. It is economically
very stable and is a growing English - speaking consumer market. Soon would
be sitting at the centre of the world and will have very close proximity to India,
The present Government must put in more emphasis on the region and should
also work to conclude mush delayed FTA agreement with the region .
175

ASEAN foreign policy priority for India is mainly due to;

 The SAARC countries are not big markets.
 All the countries are low income countries, while ASEAN is much
bigger economically and much more stable and friendly. The present
government should make the ASEAN region as its top priority foreign
policy.
 All countries are at different levels of development and provide greater
potential for Indian companies but the history and culture is very much
like India.
 The region is a great manufacturing, services and trade hub. By
deepening ties with it would caution about the risks against unstable
Chinese market and mature western economies.15
Tamil Nadu is the recipient of highest FDI from Mauritius amounting to

US$ 52,694.44 million, followed by countries like USA, UK, Japan, Germany,
France, Netherland, Cyprus, UAE, Switzerland. More than 3,000 foreign
subsidiaries including Ford, Hyundai, Saint Gobian, Nokia, Motorola, Dell,
Renault-Nissan and Daimler, local Manufacturers like Ashok Leyland, TVS
group, Titan, Murgappa Group, Cement Companies etc. Tamil Nadu is
increasingly becoming the choice of destination for foreign investors, which
provides them with a global reach. Ranked among top three States in terms of
Purchasing Power Parity (PPP) Tamil Nadu is a dream come true for all those
looking for rich cultural heritage, a highly productive work force.16 The state
has attracted Rs.44,402 crores in Foreign Direct Investment in the last five years
since 2011, and has signed 33 Memorandum of Understanding worth rupees
31,706 crores out of which rupees 14,305crores have been invested.17
Reference
1. Christe, Wisseman, Jan. (September, 1998). The Medieval Tamil-Language
Inscriptions in Southeast Asia. Journal of Southeast Asian Studies, 29(2), pp. 239-
268 Published by: Cambridge University Press on behalf of Department of History,
National University of Singapore Stable URL: http://www.jstor.
org/stable/20072045.
2. Ibid.p.242.
3. Hermann Kulke, K. Kesavapany & Vijay Sakhuja (eds.).(2009). Nagapattinam to
Suvarnadwipa: Reflections on the Chola Naval Expeditions to Southeast Asia.
Singapore: Institute of Southeast Asian Studies. P.
176

4. Retrieved on march 12th 2016 from http://www.tn.gov.in/tamilnadustate

5. Retrieved on June 15th 2016 from http://www.tn.gov.in/tamilnadustate
6. Retrieved on july 4th 2016 from http://www.tn.gov.in/tamilnadustate
7. indiatoday.indiatoday.in/story/state-of –states-india-today-tamil-nadu-overall-most
improved/1/804507.html
8. http://www.business-standard.com/article/economy-policy/tamil-nadu-fights-to-
retain-edge-in-make-in-india-race-115010801176_1.html
9. AG leanardo,S.J.( 2006). Tamil Nadu Economy. Chennai: Macmillan India Ltd. P
290.
10. Report.(2012). ASEAN –India Connectivity Report. New Delhi: Research and
Information System for developing Countries. P.40-41
11. Ibid.P.41
12. Retrieved on December10th 2016 from http://www.spc.tn.gov.in/ tenthplan/
CH_2_4.PDF
13. Retreived on December 15th 2016 from http://www.business-standard.com/
article/economy-policy/tamil-nadu-fights-to-retain-edge-in-make-in-india-race-
115010801176_1.html
14. Opcit.
15. Bill Hayton Associate.(2016). ASEAN’s Regional Role and Relations with Japan:
The Challenges of Deeper Integration -, Asia Programme.
16. Retrieved on September 8th 2016 from http://www.business-standard.com/article/
economy-policy/tamil-nadu-fights-to-retain-edge-in-make-in-india-race-
115010801176_1.html
17. Retrieved on January 20th 2016 from http://www.onvestgintamilnadu. com/
tamilnadu/doc/policy/tamil_nadu_Industrial_policy _2014 pdf.

177

Connectivity Integration and Cooperation between
ASEAN and Tamil Nadu
Tamil Nadu has been India’s most progressive State and is amongst the
top three on several economic and social indicators. Tamil Nadu economy
successfully emerged out of the recession of the early years of both the Tenth
and Eleventh Plan.1 The economy was revived through various sector-specific
policies and is presently placed back on the path of prosperity and development.
While growth matters as it paves the way for better standard of life, the nature
of the growth needs to enable the participation of different sections of society.
Inclusive growth will also eliminate or reduce prevailing imbalances in the
society. It will eliminate/reduce the incidence of poverty, gender and regional
inequalities and make significant improvement in health and education
outcomes and infrastructure.2
Road Connectivity and its Linkages

Rail and Road movement are the dominant modes of Transport. Though
Railways provides truck services for bulk movement of commodities and
passenger traffic, road transport also provides long distance services for
commodities and passenger movement with safety, economy and in the quickest
possible time. The road network is the one that gives connectivity to all
habitations and modes of other complementary transport system in the State.
Good roads are necessary for the movement of modern traffic. Without an
efficient network of roads, other planned development activities cannot produce
expected results. Even Rail, Waterways and Airways need a good road network
to feed them. The road network of the State influences considerably the
economic development, population distribution, shape of cities and towns,
environmental quality, energy consumption, access to social infrastructure and
above all the quality of life.3
The State today has one of the best road networks in the country with
3,865 kilometres. of National Highways (NH), 7,136 kilometres. of State
Highways (SH), 7,408 kilometres of Major District Roads (MDRs) and 40,853
kilometres. Other District Roads (ODRs) bringing the total to 1,50,647
kilometres of roads. However, immediate action is needed to upgrade the
carriageway of all roads to at least two lanes and have Bituminous surface for
178

all roads. All roads need to be provided with sufficient roadways width as per
IRC standards in addition to having good drainage facilities. Despite large
investment in road construction, transport and maintenance, the roads continue
to be characterized by poor service levels due to paucity of adequate resources
and non prevalence of a standard maintenance regime. In order to correct the
situation, a comprehensive Road Policy was announced in the Budget 2002-03.4
MAP – ROAD CONNECTIVITY IN TAMIL NADU
It is proposed to achieve good quality roads and service levels and

connectivity to village/ habitations having a population of 500-1000 people, to
focus on road safety and environment protection, institutional strengthening and
capacity building of the department and overall boost to rural economy of the
state during the Tenth Plan period by completing the on-going schemes along
with a major shift in the traditional pattern of road planning. With this kind of
179

comprehensive planning and private sector participation, it is possible for the

State to have an enviable road network both in quality and outreach.
Roads in the State are broadly grouped under two categories (i)
Government Roads and (ii) Village Roads, and others. Highways Department of
the Government of Tamil Nadu is looking after planning, construction and
maintenance of the Government Roads. Panchayat unions, Urban local bodies
and Government departments also maintain roads in the State. Realising the
importance of developing and maintaining a good system of roads for the first
time in India, a separate department for Highways was formed at the State level,
as early as April 1946. The process of economic liberalisation adopted in the
last ten years or more aimed at improving the national economy has created
new demands for transport infrastructure in general and roads in particular. Two
major policy decisions were taken at the national level recently on
strengthening and improving the quality of roads. The first is the commitment
of the Government of India (GOI) to develop the Golden Quadrilateral, North-
South and East-West corridors totalling about 13,150 kms. with 4/6 lanes. The
second is the Pradhan Mantri Gram Sadak Yojana (PMGSY) to give
connectivity through all-weather roads to all habitations with a population more
than 500 persons by the year 2007. These two progressive policies of the GOI,
would bring benefits to the road sector in improving its performance level.
Further, the GOI has formulated policies which are directed to facilitate the
private sector to have greater participation in road development activities.
Build-Operate Transfer (BOT) model in road sector has been accepted to-day to
play a major role and this concept has been adopted for number of projects in
the State.5
To avoid traffic congestion in cities and towns, a provision of Rs.2.18

crore has been made in the Ninth Plan for acquisition of lands for bypasses at
Kumbakonam, Palani and Cheyyar. The land acquisition works are in progress.
The widening, improving and upgrading of by - passes in National Highways in
Salem and Karur are also in progress. Coimbatore bypass and Athupalam
Bridge were completed on BOT basis and thrown open to traffic. Construction
of a bridge across river Koratalayar near Karanodai at 26/4 of NH5, Chennai-
Kolkatta road was also taken up and completed during the Ninth Plan. Tamil
Nadu Urban Development Project with loan assistance from the World Bank
was taken up under the Transport and Traffic Management Program (TRAMP)
180

in 10 major cities and towns. The World Bank assistance ended on 30.9.97 and
the residual works were continued with State funds. Out of 37 works, 2 works
viz., Southern Sector and Northern Sector of Inner Ring Road are in progress
and will be completed during 2017. Tamil Nadu Agricultural Development
Project with World Bank Assistance (a) Marketing Centre Roads The project
envisages improvements to 859 km of roads leading to 23 marketing centres in
nine districts viz., Kancheepuram, Vellore, Salem, Villupuram, Perambalur,
Thanjavur, Tiruvarur, Tiruchirapalli and Nagapattinam at a total cost of Rs.109
crore under the World Bank Loan Assistance. Out of 23 marketing Centres,
roads leading to 22 marketing centres have been completed. For the balance one
marketing centre, the work will be completed soon.6
The road network is a basic mode of connectivity for linking Agriculture,

Industries, Railway, Seaport, and Airport. The indicators reveal the efficiency
of road system are total length of roads, proportion of surfaced roads, density of
road etc. With respect to road infrastructure the state is well placed. Among the
various types of roads, Panchayat Union and village panchayat roads are the
major constituent, which occupies one half of roads of India.
Table - 5.1: Length of Roads in Tamil Nadu

(Kilometres)
Type of Road /Year 2000- 2001- 2002- 2003- 2004- 2005- 2006-2007
2001 2002 2003 2004 2005 2006
National Highways 3865 3850 3850 3850 3850 4254 4483 (In NH-
1244Kms.&
NHAI-3239
Kms.)
State Highways 4168 7163 7222 7230 7230 6849 9256
Major District Roads 51229 48325 48533 48574 48574 7569 9451
Other District Roads - - - -- - 42747 38256
Sugercane Roads - - - - - - -
Panchayat Union and 82854 82859 82859 82859 82859 95328 96330 (p)
Village Panchayat
Roads
Others @ 37075 37122 37319 37391 37391 37391 37391
Town Panchayat - - - - - - -
Municipality roads - - - - - - -
Corporation Roads - - - - - - -
Total 179196 179319 179783 179904 179904 194140 195167
Source: Economic Appraisal, Evaluation and Applied Research Department , Government India ,
Kuralagam, Chennai.108.
181

Table – 5.1.1: Length of Roads in Tamil Nadu

(Kilometres)
Type of 2006- 2007- 2007- 2008- 2009- 2010- 2011- 2012- 2013-
Road /Year 2007 2008 2008 2009 2010 2011 2012 2013 2014
National 4483 4500 4500 (In 4873 4873 4861 4974 4974 4974
Highways (In NH- (In NH- NH- (In NH-
1244Km 1240 1240 1613
s.& Kms.& Kms.& Kms.&
NHAI- NHAI- NHAI- NHAI-
3239 3260 3260 3260
Kms.) Kms.) Kms.) Kms.)
State 9256 9264 9264 9384 9384 10561 10764 10764 11594
Highways
Major 9451 9451 9451 11288 11288 11315 11247 11247 11289
District
Roads
Other 38256 39256 36510 34293 34293 33182 33263 33263 32492
District
Roads
Sugercane - - 1207 1803 1803 1755 1769 1769 1668
Roads
Panchayat 96330 99610 99610 99610 105748 106619 114556 1281189 143071
Union and (p) (P) (p) (P)
Village
Panchayat
Roads
Others @ 37391 37391 37391 37391 - - - - -
(p) (p) (P)
Town - - - - 17904 19151 18554 18221 19304
Panchayat
Municipality - - - - 12525 12703 12703 12703 12703
roads
Corporation - - - - 5388 5410 9694 9694 9694
Roads
Total 195167 198472 197933 198642 203206 205557 217524 230824 246789
Source: Economic Appraisal, Evaluation and Applied Research Department, Government of India ,
Kuralagam, Chennai.108.
The table 5.1 depicts the length of Roads in Tamil Nadu from 2000-2001
to 2004-05. The National Highways allotted to Tamil Nadu is 3,865 Kilometres
where as 3,850 kilometres have been constructed which constitute 2.14 percent
182

of the total length of roads in Tamil Nadu. The State highways were 4,168
kilometres in 2000-01 which has increased to 7,163 kilometres in 2002 and
7,222 kilometres in 2003 which is about 4.01 percent share of total this also
tells that the development of infrastructure has taken place which increased the
state highways by 3000 kilometres in 2001-02. Major district Roads was 51,229
kilometres and for 2001-02 it was 48,325 kilometres which constituted 27
percent out of the total length of the roads. The Village is the soul of Tamil
Nadu for major population lives in villages, so the infrastructure for the villages
is necessary. The pressure for urban infrastructure viz., roads, housing, water
supply, sanitation and sewerage is increasing rapidly. Providing clean drinking
water is also a challenge. Currently out of 719 urban towns, only 397 are
provided with clean drinking water as per the norms. Underground Sewerage
Connections are available only in 14 ULBs (Urban Local Bodies) panchayat.
The table 5.1.1 continues to show that there is no significant change in

share of national highways but it has decreased from 2.14 to 2.13 percent in
2005-06 and about 404 kilometers has been increased nearly 10.49 percent of
national highway road has been extended. The National Highways has
increased the length from 4,254 kilometres to 4,483 kilometres in the year
2006-07, out of which 1,244 kilometres are National highways and 3,239
kilometres are taken up by National Highways Authority of India. In 2007-08
the National Highway Authority has increased the length by 17 kilometres
which is about 2.27 percent. The State highways has improved the
infrastructure an more roads are laid and there is an increase in the length of
roads laid to the extent of 1,882 kilometres. The State Highways constitute 4.67
percent of total share. The length of major district roads were 24.04 percent the
road is divided as the major district constituting 4.76 percent and other districts
as 19.28 percent. Panchayat union and village panchayat constitute 50.19
percent government is concentrating on improving connectivity. Other roads
constitute 18 percent.
The table 5.1-5.1.1 also shows the length of roads in Tamil Nadu for the
year 2009 to 2014 there is no significant change in the length of roads so far as
National Highways is concerned. State high ways have significantly increased
by 1000 kilometres overall this is to control the bustling traffic which the state
is facing. The major district roads has significantly improved new roads are laid
to facilitate smooth running of public transport and private vehicles.
183

Table - 5.2: Length of Roads in Tamil Nadu- Lane - wise -Single Lane
(In Kilometres)
Year
2005 2006 2008 2009 2011 2014
Type of Road
National High Ways (Under NH) 40 24 18 33.10 13 (0.3) 12(0.24)
National High Ways (Under NHAI) - - -- - - -
State Highways 1802 1328 827 269.67 32 (0.3) 96 (1.00)
3702 883
Major District Roads 4595 3989 3961 4722.81
(32.7) (8.00)
30472 28936
Other District Roads 39248 40140 33895 31305.30
(91.8) (89.05)
1587 1470
Sugarcane Roads 1600 - 1711 1640.61
(90.4) (88.13)
35806 31397
Totals 47285 45482 40412 37971.49
(58.1) (51.00)
Percentage of Lane width to Total
(77.15) (74.05) 65.74 61.60 - -
Length of Roads
Source: Complied from Tamil Nadu Economic Appraisal Report, Year book 2002-2003,2003-2004
&2004-2005, 2005-2006,2006-2007&2007 -2008, 2008-2010, 2009-2010 & 2010-2011, 2011-2012
&2013-2014.
Evaluation and Applied Research Department, Government of Tamil Nadu, Chennai.
Table - 5.2.1: Length of Roads in Tamil Nadu- Lane – wise Intermediate Lane
(In Kilometres)
Year
2005 2006 2008 2009 2011 2014
Type of Road
62 4
National High Ways (Under NH) 11 - 42 42
(1.3) (0.08)
National High Ways (Under NHAI) - - - - - -
963 481
State Highways 1042 1238 954 1412.80
(9.1) (4.00)
4687 7251
Major District Roads 898 1354 2869 3464.04
(41.4) (64.00)
1964 2738
Other District Roads 1178 1634 1939 1986.16
(5.9) (8.43)
106 139
Sugarcane Roads - - 3 96.71
(6.0) (8.33)
7782 10613
Totals 3129 4226 5807 7001.71
(13.6) (17.00)
Percentage of Lane width to Total
(5.11) (6.88) 9.45 11.36 -
Length of Roads
Source: Source: Complied from Tamil Nadu Economic Appraisal Report, Year book 2002-2003,
2003-2004 &2004-2005, 2005-2006,2006-2007&2007 -2008, 2008-2010, 2009-2010 & 2010-2011,
2011-2012 &2013-2014.
184

Table - 5.2.2- Length of Roads in Tamil Nadu- Lane – wise Double Lane
(In Kilometres)
Year
2005 2006 2008 2009 2010 2011 2014
Type of Road
National High Ways 3531 2778
3510 3909 1155 3156.72 NA
(Under NH) (73.6) (55.86)
National High Ways
- - 2791 - NA - -
(Under NHAI)
8709 9710
State Highways 4114 3989 7021 7071.89 NA
(82.5) (84.00
2819 3012
Major District Roads 1790 2103 2419 2989.37 NA
(24.9) (27.00)
715 768
Other District Roads 720 917 646 970.39 NA
(2.2) (2.36)
62 59
Sugarcane Roads 35 - 32 65.3 NA
(3.6) (3.54)
15836 16327
Totals 10169 10918 14064 14253.67 NA
(25.7) (26.00)
Percentage of Lane width
(16.59) (17.78) 22.88 23.12 NA -
to Total Length of Roads
Note: NA as the data is not available.
&2004-2005, 2005-2006,2006-2007&2007 -2008, 2008-2010, 2009-2010 & 2010-2011, 2011-2012
&2013-2014.
Table - 5.2.3: Length of Roads in Tamil Nadu- Lane - wise Multilane
(In Kilometers)
Year 2005 2006 2008 2009 2011 2014
Type of Road
National High Ways (Under NH) 289 321 25 1255 2180
1641.18
(25.8) (43.83)
National High Ways (Under NHAI) - - 469 - - -
State Highways 272 294 462 629.84 857 1307
(8.1) (11.00)
Major District Roads 100 123 202 111.74 107 143
(1.0) (1.00)
Other District Roads 45 57 31 31.17 31 50
(0.1) (0.15)
Sugarcane Roads - - - - - -
Totals 706 795 1189 2413.93 2250 3680
(3.6) (6.00)
Percentage of Lane width to Total 1.15 (1.29) 1.93 3.92 - -
Length of Roads
&2004-2005, 2005-2006,2006-2007&2007 -2008, 2008-2010, 2009-2010 & 2010-2011, 2011-
2012 &2013-2014.
185

Table - 5.2.4: Lane - wise Length of Roads in Tamil Nadu

Total (In Kilometres)
Year 2005 2006 2008 2009 2011 2014

Type of Road
National High Ways (Under 3850 4254 1240 4873.00 4861 4974
NH) (100) (100)
National High Ways (Under - - 3260 - - -
NHAI)
State Highways 7230 6849 9264 9384.20 10561 11594
(100) (100)
Major District Roads 7383 7569 9451 11287.96 11315 11289
(100) (100)
Other District Roads 41191 42749 36510 34293.02 33182 32492
(100) (100)
Sugarcane Roads 1635 - 1746 1802.62 1755 1668
(100) (100)
Totals 61289 61421 61471 61640.80 61674 62017
(100) (100)
Percentage of Lane width to 100.00 100.00 100.00 -
Total Length of Roads
Source: Complied from Tamil Nadu Economic Appraisal Report, Year book 2002-2003,
2003-2004 &2004-2005 , 2005-2006,2006-2007&2007 -2008, 2008-2010, 2009-2010 &
2010-2011, 2011-2012 &2013-2014.
The table 5.2 shows the lane - wise length of the roads in Tamil Nadu. The
data gives the details of total single lanes from 2005. The number of single lane
roads has reduced from 40 to 12 so far as National Highways are concerned. At
state level the single lanes reduced from 1,802 lanes to 96 lanes. At major
district level the single lane has reduced from 4,722.81 lanes to 883 lanes.
Overall it is very evident that single lanes are no longer demanded. This was
because of exploding traffic. The intermediate lanes required to smoothen the
flow of the traffic are given in the table 5.2.1. The intermediate lanes enhances
the connectivity about total 7,782 kilometres are needed to regularize the traffic,
avoid congestion and delays.
The need for double lane rose because of the increase in population,
migration and movement of people and vehicles into the state for livelihood and
business. This is evident from the data given in table 5.2.2 which depicts the
186

increase in the double lane. Double lane traffic in State Highways increased
from 4,114 kilometers to 9,710 kilometers from 2005 to 2014. The major
district roads have increased from 1,790 kilometers to 3,012 kilometers from
2005 to 2014. The total length of all roads has increased by about 26 percent
from 2004-2015.
Table - 5.3: Length of different categories of Roads in Tamil Nadu 1956-2001
Total (In Kilometres)
Year 1956 1966 1976 1986 1993 1997 2001

Type of Road
National High Ways 1746 1754 1865 1884 2002 2002 3865
(Under NH)
State Highways 1745 1780 1745 1864 1929 1969 7136
Major District Roads 13435 13591 13965 14004 13972 14016 7408
Other District Roads 21771 6859 15833 21927 35243 39786 40853
Sugarcane Cess - - - - 1132 1132 1366
Roads
Village Roads and 35160 53513 99112 54505 34083 29568
Others Panchayat
Union Roads -
Panchayat Roads - - - - 48010 29020 30810
Corporation and - - - - 8689 8689 12024
Muncipality roads
Other Roads - 6423 9684 9169 5335 11863 17617
Total 38697 65567 96505 147960 170817 142560 150647
Source: Economic Appraisal, Evaluation and Applied Research Department,
Government of India, Chennai.
The data shows the need for multiple lanes is due to the growing traffic
intensity in and around Chennai city which has necessitated by the
strengthening and widening of Radial Roads leading to Chennai city. Assisted
Road Works Improvements to Major District Roads, Other District Roads and
Construction / Reconstruction of Bridges were taken up. Rural Roads serve
rural areas and provide an outlet to market centres, taluk headquarters and other
main road.
187

The overall lane wise length of roads in Tamil Nadu shows that National
Highways have increased from 3850 kilometres in 2005 to 4,974 kilometres in
2014. This has been the resultant of growing inflow and out flow of people and
goods from one state to another. The State highways has also increased it road
length from 7,230 kilometre to 11,594 kilometres in 2014. This shows the
improvement made in routes by constructing the bridges, new routes and roads
which is not restricted to city alone even the villages and taluks are provided
with better road facility which would help farmers and youth to travel to their
workplace easily with good roads. The table 5.3 depicts the data pertaining to
the consolidation of total length of different categories of roads in Tamil Nadu
since 1951-2001.The updated figures shows that there has been significant
improvement on road infrastructure.
Connectivity by Rail
Chennai and the region of Tamil Nadu are served by the Southern
Railways, one of the seventeen rail zones of the Indian Railways. In fact the city
is the headquarters for the Southern Railways. The zone of the Indian Railways
covers six divisions, namely Chennai, Madurai, Tiruchirappalli, Salem,
Palakkad, and Thiruvananthapuram and covers states of Tamil Nadu, Kerala,
Puducherry and small portions of Andhra Pradesh and Karnataka. More than
500 million passengers travel on the network every year. This zone of the
Indian Railways differs from the other zones of India in that its revenue is
derived from passengers and not from freight.
A few of the important networks and railheads in this zone are the
Chennai Central, Coimbatore city Junction, Madurai Junction, Tirunelveli
Junction, Tiruchirappalli Junction and Thiruvananthapuram Central are the
most important and the most profitable stations under Southern Railway
Division. The most profitable route comprises Chennai Central - Arakkonam -
Katpadi Junction (Vellore) -Jolarpet Junction - Salem Junction - Erode Junction
- Tirupur Junction - Coimbatore city Junction - Thrissur - Ernakulam Junction -
Trivandrum Central, Chennai Egmore - Chengalpattu - Viluppuram -
Tiruchirappalli - Dindigul- Madurai Junction - Tirunelveli - Nagercoil -
Trivandrum Central, Mangalore Central - Calicut - Shornur Junction.7
188

MAP – RAIL CONNECTIVITY IN TAMI NADU
For better administrative control and improved development and

operational reasons, the Railway Board approved the creation of a new Railway
Division with Salem as headquarters in 2005 to improve railway infrastructure
and facilities and introduce better train services, thus satisfying the long-felt
189

needs of railway passengers in and around surrounding areas and thereby

providing better conveniences to rail travellers. Tirupur Junction and Erode
Junction are also included in the Salem division. It is now the fourth largest of
all the seven divisions of the Southern Railway and was carved out of the
Coimbatore, Palakkad and Tiruchirapalli divisions. A large section of this
railway zone are broad gauge lines, and only small section are meter gauge
lines. The main improvements currently in this railway zone are to convert all
lines to broad gauge, improvement of stations, platform covering, better
catering stalls and an automated signaling system to avoid accidents.
The Chennai Central station handles two lakh passengers every day. Seven
stations namely Chennai Egmore, Coimbatore North, Erode Junction, Salem
Junction, Tiruchirappalli Junction, Madurai Junction, and Palakkad have been
scheduled for upgrading. Chennai Central, Trivandrum Central, Madurai
Junction , Coimbatore city Junction and Ernakulam Junction railway stations
are being upgraded to world-class standards.
Railways share the load of transport of men and material along with the
road transport. The coverage by the railways in the state is considered as the
total length of Broad Gauge and Metre Gauge of railway lines. The total route
length of railway line in Tamil Nadu as on 2000 – 2001 is 4,180.88 kilometers
comprising of 2,043.72 kilometers of which electrified is about 733 kilometers
and Non electrified length of railways is 131`0 kilometres . There has been an
increase of railways stations in Broad Gauge from 247 kilometres to 294
kilometres from 2000- 2004.
In continuation, the table 5.4, 5.4.1, 5.4.2, 5.4.3 depicts the track length to
be 5,925.94 kilometres which is shared between Broad gauge and Metre gauge.
Overall there has been an increase in total track length over the years. The total
track length has decreased in the year 2007-08.This could have been due to
repair in the track. Under broad gauge, electrified shows a gradual increase
whereas non electrified shows proportionate increase. Under Metre gauge
electrified remains constant at 158.14 kilometres for the year 2004-05, 2005-06.
For the year 2006-07 and 2007-08 there is no allotment of the track. Non
electrified metre gauge shows a substantial decrease in the track length over the
years.
190

Table - 5.4: - Railway Operations in Tamil Nadu 2000-2004
Sl. Item Unit Actual Actual Actual Actual

No 2000- 2001- 2002- 2003-
2001 2002 2003 2004
1 Route Length (A+B) K.M 4180.88 4180.88 4176.63 4015.86
A. Broad Gauge K.M 2043.72 2043.72 2071.02 2061.19
(a) Electrified K.M 733.17 865.03 902.41 917.59
(b) Non Electrified K.M 1310.55 1178.69 1168.61 1143.60
B. Metre Gauge K.M 2137.16 2137.16 2105.61 1954.67
(c) Electrified K.M 164.08 164.08 159.83 159.87
(d) Non Electrified K.M 1973.08 1973.08 1945.78 1794.80
2 Track Length ( B.G.&M.G) A+B K.M 6306.90 6313.03 6286.22 6093.23
A. Broad Gauge K.M 3819.98 3840.54 3876.63 3885.53
(a) Electrified K.M 1928.18 2082.73 2127.59 2167.23
B. Metre Gauge K.M 2486.92 2472.49 2409.59 2207.70
(a) Electrified K.M 279.70 277.51 244.36 214.03
3 Railway Station (A+B+C) No. 548 527 543 528
A. Broad Gauge No. 247 229 242 294
B. Metre Gauge ** No. 235 233 234 183
C. Broad Gauge and Metre No. 66 65 67 51
Gauge Combined
** Out of 71 Metre Gauge Stations, 63 Stations are gauge Conversion.
Source: General Manager, Southern Railway, Chennai.3
191

Table – 5.4.1: Railway Operations in Tamil Nadu 2004-2008
Sl.N Item Unit Actual Actual Actual Actual

o 2004- 2005- 2006- 2007-
2005 2006 2007 2008
C. Broad Gauge K.M 2130.49 2178.51 2317.03 2616.09
(e) Electrified K.M 917.59 944.1 950.11 1072.79
(f) Non Electrified K.M 1212.90 1234.40 1366.92 1543.30
D. Metre Gauge K.M 1860.51 1812.49 1624.20 1334.71
(g) Electrified K.M 135.01 135.01 0.00 0.00
(h) Non Electrified K.M 1725.50 1677.48 1624.20 1334.71
2 Track Length ( B.G.&M.G) K.M 5925.94 5948.18 5869.60 5911.05
A+B
C. Broad Gauge K.M 3874.51 3921.86 4089.23 4450.79
(c) Electrified K.M 2161.90 2190.45 2198.56 2366.54
D. Metre Gauge K.M 2078.43 2026.32 1780.37 1460.26
(c) Electrified K.M 158.14 158.14 0.00 0.00
D. Broad Gauge No. 325 291 322 390
E. Metre Gauge ** No. 207 190 167 137
F. Broad Gauge and No. 60 39 14
Metre Gauge Combined
** Out of 71 Metre Gauge Stations, 63 Stations are gauge Conversion.
Source: General Manager, Southern Railway, Chennai.3
192

Table – 5.4.2: Railway Operations in Tamil Nadu 2008-2011
Sl.No Item Unit Actual Actual Actual

2008- 2009- 2010-
2009 2010 2011
1 Route Length (A+B) K.M 3926.99 3379. 3880.90
E. Broad Gauge K.M 2774.55 3045. 3054.73
(i) Electrified K.M 1146.25 1305. 1496.91
(j) Non Electrified K.M 1628.30 1740. 1557.82
F. Metre Gauge K.M 1152.44 833 826.17
(k) Electrified K.M 0.00 0.00 0.00
(l) Non Electrified K.M 1152.44 833 826.17
2 Track Length ( B.G.&M.G) A+B K.M 5924.49 5958. 5997.54
E. Broad Gauge K.M 4665.81 5067 5115.00
(e) Electrified K.M 2530.90 2829 3081.74
(f) Non Electrified K.M 2134.91 2237 2030.26
F. Metre Gauge K.M 1258.68 890 885.54
(e) Electrified K.M 0.00 0.00 0.00
(f) Non Electrified K.M 1258.68 890. 885.54
3 Railway Station (A+B+C) No. 533 536
G. Broad Gauge No. 423 464
H. Metre Gauge ** No. 107 71
I. Broad Gauge and Metre No. 0.00 39 1
Gauge Combined
Source: General Manager, Southern Railway, Chennai.3 compiled from statistical book
Chennai.
193

Table - 5.4.3: Railway Operations in Tamil Nadu 2011 - 2015
Sl. Item Unit Actual Actual Actual Actual

No 2011- 2012- 2013- 2014-
2012 2013 2014 2015
G. Broad Gauge K.M 3069.08 3323.80 3390.10 3555.50
(m) Electrified K.M 1759.16 1769.20 1769.86 1769.86
(n) Non Electrified K.M 1309.92 1553.49 1620.24 1620.24
H. Metre Gauge K.M 692.54 522.88 456.33 456.33
(o) Electrified K.M 0.00 0.00 0.00 0.00
(p) Non Electrified K.M 692.54 572.80 456.23 456.23
2 Track Length ( B.G.&M.G) A+B K.M 5890.19 6011.53 6031.43 6196.83
G. Broad Gauge K.M 5157.91 5458.93 5547.67 5712.76
(g) Electrified K.M 3413.62 3457.41 3465.88 3456.88
H. Metre Gauge K.M 732.28 552.55 483.76 483.76
(g) Electrified K.M 0.00 0.00 0.00 0.00
J. Broad Gauge No. 465 465 468 469
K. Metre Gauge ** No. 71 71 68 68
L. Broad Gauge and Metre No. 536 0 0 0
Gauge Combined
Source: General Manager, Southern Railway, Chennai.3 compiled from various
statistical book
The total route length of railway line in Tamil Nadu as on 2008-09

comprises of 3,926.99 kilometres which is decreased by 24 kilometres out of
which 2,774.55 kilometres are about 70.65 percent of total route length being
broad gauge out of which 1,146.25 kilometres are allotted for electrified where
as the remaining 1,628.30 kilometres are non electrified broad gauge .Similarly
the track length is 5,924.49 kilometres, out of which 4,665.81 kilometres were
allotted for broad gauge. However out of 5,924.9 kilometres of broad gauge
allotted 2,530.90 kilometres are electrified and remaining kilometers are non
electrified gauge. During the year 2008 – 09, the track length of 1,258.68
kilometres were allotted as metre gauge was fully allocated to non - electrified
category. Overall a small proportion of increase could be seen in the track
length and the route length for the non - electrified under metre gauge shows a
194

decrease in the length. The number of stations under broad gauge were 423
which increased to 469 stations. The station for metre gauge has come down
from 107 station to 68 stations in the year 2014-15.
The table 5.4.3 represents that there is small change in the route length.
The track length has gradually increased over the years whereas, the metre
gauge for non electrified has decreased gradually from 732.28 kilometres to
483.76 kilometres in the year 2013-14.The number of stations remain constant
and number of station for broad gauge has increased from 465 to 468 station.
While, the metre gauge stations further decreased from 71 to 68 stations. The
summary of the Railway Operations is depicted in table 5.4 to 5.4.3.
Air Connectivity in Tamil Nadu

Enhancing connectivity between ASEAN and India is the major thrust of
India’s Act East Policy when India embarked on policy of “Make in India” and
“Skill India”. Connectivity in the form of road, rail, maritime, as well as air
links is indispensable to achieving increased cooperation in trade, investment
and strengthening people-to-people contacts between nations. Better
connectivity would lower production costs and increase reliability of supply
chain. In this context, air connectivity is an important mode of transportation to
carry tourist and business travelers and high-value fragile goods.8
Chennai Airport has all the free and paid facilities with world class
standards. It has a unique facility of Domestic and International Terminals
adjacent to each other connecting with common canopy. Moreover, the
Suburban railway station is connected with under passage to the airport. It has
many firsts positions furnished below:-
 First International Airport to get ISO-9001-2000 Certification.

 1st to have aerobridges at Domestic Terminal.
 1st to use Domestic terminal for International flight on wheels.
 1st to supply free mineral water through designated water coolers at
Kamraj Domestic Terminal Anna International Terminal.
 1st to introduce paper cups at Airport to make it environment friendly.
 Adjudged 'Best Airport - Domestic Terminal' by Indian Guild of
Professional Architects. The President of India gave the award.9
195

MAP – AIR CONNECTIVITY IN TAMIL NADU
Chennai Airport is the major hub airport in Southern India. It handled 10.5
Million Passengers, 1.10 Lakh Aircrafts and 3.23 lakh metric tons of Cargo
during 2009-10. Chennai Airport is the third busiest airport in India, after Delhi
(DIAL) and Mumbai (MIAL). With a daily footfall of 10,500 international
passengers and 18,000 domestic passengers, Chennai Airport accounts for 8.5
percent of India’s passenger traffic. The other facilities of this airport include
16,366 Square metres of modernized and mechanized terminal for air cargo
handling that caters to the international trade. In fact on the cargo front Chennai
has the facility to store over 40MT of perishable goods.10
196

197

198

199

200

201

202

The air connectivity is the connecting link between ASEAN and other
states of India. The air operation and performance of airports in Tamil Nadu is
portrayed in the Table 5.5. it both the International and Domestic Airports in
Tamil Nadu for the past fifteen years. The major airports of Tamil Nadu are
Chennai, Coimbatore and Trichy and Madurai. All these airports have both
international and domestic terminals. The number of passengers in transit from
various airports in Tamil Nadu shows an increasing trend in the year 2000-
2001. Chennai airport has a large number of passenger and cargo in transit. In
the year 2006-07 the airports in the other districts of Tamil Nadu such as
Coimbatore, served as civil aerodrome. It served more than 10 domestic and
International carriers, whereas Madurai airport is the third busiest airport for
domestic and aircraft movements. Two chartered planes from Malaysia landed
at Madurai airport making them the first international aircraft to land at the
temple city and the airport achieve the status of International airport in the
year 2012. Tirchy airport is the third largest airport after Coimbatore. It has got
ISO 9001:2008 certifications for quality and it was also acquired the status of
International Airport in 2012.
There has been an increasing trend in the passenger movement since 2000 -01
to 2006 -07 in Chennai airport both domestic and International. The
nomenclature changed from Chennai airport to Anna International Airport and
Kamaraj domestic terminal.
The cargo loaded and unloaded at Chennai shows an increasing trend from
2000 – 01 to 2004-05. In the year 2006-07 cargo loaded and unloaded shows a
decreasing trend which continues till 2009-10. The Cargo during 2001 shows
75,423 tonnes being handled with increasing trend. However, the tonnes carried
during 2008-09 shows 21,314 tonnes which is a decline. The trading activities
were not favourable, the Asians were facing financial crisis, the increase in duty
charge and lack of facilities to handle the cargo were some of the reasons for
the decline in the cargo tonnage. In the year 2010-11, the cargo handled were
four times which is about 2,95,497 tonnes. The passengers travelling both at
international and Domestic airport show an increasing trend. This shows that
the connectivity by air has become cheaper and easier and affordable to Indians
and foreign tourists too. The other domestic airport acquiring the status of
international airport made passenger movement, loading and unloading of cargo
to other countries easier, safer and less time consuming.
203

Therefore, adequate connectivity generated enormous opportunities for the

dynamic growth of a region. India’s air traffic, both passenger and cargo, has
come back on a rising track as the country enters into a higher growth path in
recent months. The steady increase in air passenger flow is a sign of a growing
economy.
Aircraft Movements between ASEAN and Tamil Nadu

Strengthening air transportation is essential to expand trade by increasing
sophistication in services. The emerging of the e-commerce market in India
would bring huge opportunities to logistic sector particularly to the air cargo
Industry. Improving the Air Cargo Infrastructure would bring a positive
impact on trade, employment, tourism and economic growth.
Trends of Aircraft movements, Passenger flow and Freight carried between

ASEAN and Tamil Nadu
Table – 5.5.1: City - wise International Aircraft movement
(Numbers in ‘000)
Airport 2008-09 2013-14 CAGR
Chennai 30.45 35.26 2.98
Coimbatore - 0.95 -
Tiruchirapalli - 7.03 -
Madurai (custom Airport) - 1.37 -
Source: Compiled from ASEAN – India Air Connectivity Report 2016. Asean India Centre at RIS.
Pg 43
The table 5.5.1 gives the number of aircraft movements in the
international Airport Chennai, followed by other major tourist destinations like
Tiruchirapalli, Madurai and Coimbatore. The Aircraft movements at Chennai
International airport has increased by 17 percent. Due to traffic the Aircraft
movement is directed towards Coimbatore, Tiruchirapalli and Madurai (custom)
Airport.. The Air traffic forecast would help in taking strategic decisions and
efficient resource allocation.
Table – 5.5.2: City - wise International Passenger movement in Tamil Nadu

(numbers in ‘ooo)
Airport 2008-09 2013-14 CAGR
Chennai 3663.91 4537.67 4.37
Coimbatore - 119.56 -
Source: Compiled from ASEAN – India Air Connectivity Report 2016. Asean India Centre at RIS.
Pg 43 Airport Authority of India.
204

The table 5.5.2 shows that the total number of passengers who travelled by
air from ASEAN to Tamil Nadu is balanced and likely to increase across all the
airports in coming years.
Table – 5.5.3 City - wise International Air Freight in Tamil Nadu

(in tonnes)
Airport 2008-09 2013-14 CAGR

Chennai 219.56 220.40 0.08
Coimbatore - 0.96 -
Source: Compiled from ASEAN – India Air Connectivity Report 2016. Asean India
Centre at RIS. Pg 43 Airport Authority of India
Table 5.5.3 shows the growth of total freight carried. The CAGR for
Chennai shows 0.08 percent. The freight at Tiruchirapalli are 4.75 tonnes and at
the other airports freights are trifling.
Air Links between ASEAN and Tamil Nadu

ASEAN and Tamil Nadu are governed by the Bilateral Air Services
Agreement (BASA) signed by India in 2015 with the partner countries. Airlines
of ASEAN countries mainly Singapore, Malaysia and Thailand have been
flying to major cities like Mumbai Delhi, Kolkata, Chennai, Hyderabad and
Bengaluru. India offered eighteen additional points where no restriction on
frequency of aircraft was imposed.11 The agreement is applicable to Tamil Nadu
as it has four international air ports, out of which three have Bilateral Air
Service Agreements.
Table – 5.6: India –ASEAN Bilateral Air Service Agreement- BASA city wise Air
links. pertaining to Tamilnadu.2014*
Metro Bandarseri Bangkok Jakarta Kuala Yangon Singapore

Airports Brunei Thailand Indonesia lumpur Myanmar
Chennai    
Coimbatore 
Tiruchirapalli  
Note * Drawn based on existing BASA but no all are operational.
Source: Compiled from the Calculation based on DGCA. : Compiled from ASEAN –
India Air Connectivity Report 2016. ASEAN India Centre at RIS. Pg 43 Airport
Authority of India.
205

The above table 5.6 shows the entitlements and offers that vary across
BASA partners. The seats and frequency of air linkages with Thailand,
Indonesia, Malaysia and Singapore has been fully utilized where as the air
linkages with Brunei and Myanmar are underutilized.
Table – 5.7: City - wise Air passengers flown between India and ASEAN from
Tamil Nadu (numbers ‘000)
City wise pair Year From To India Deficit / Total CAGR

India surplus
Bangkok - 2005 42.70 39.64 -3.05 82.34
Chennai 2013 73.87 68.18 -5.69 142.05 7.06
Jakarta –Chennai 2004 925 990 65 1915
Chennai- Jakarta 2006 0 0 2 -96.77
Kuala lumpur - 2005 195.30 146.62 -48.68 341.92
Chennai 2013 221.97 204.88 -17.09 426.84 2.81
Kuala lumpur – 2007 0.00 0.00 0.00 0.00 -
Tiruchirapalli 2011 419.99 0.00 -419.99 419.99
Singapore - 2005 260.85 239.20 -21.65 500.04
Chennai 2013 416.31 389.41 -26.90 805.72 -44.20
Singapore – 2006 0.00 0.36 0.36 0.36
Tiruchirapalli 2011 69.21 83.48 14.28 152.69 234.80
Source: Compiled from Air Transport Statistics, DGCA, New Delhi.
Table 5.7 depicts city wise air passengers flown between ASEAN
countries such as Singapore, Thailand and Malaysia to Tamil Nadu from their
capital cities. In terms of city - wise passengers flown, the air services are
available mostly to a metro city like Chennai and Tier I cities like
Tiruchirapalli. Only five ASEAN Countries have direct flight with India. The
remaining five have no direct flights but have interconnection from other
airports. The CAGR shows a negative growth for air passengers flying to and
from Jakarta are as low as -96.77. Whereas, large number of passenger fly to
and from Singapore to Tiruchirapalli because of cost effectiveness and better
facilities.
206

Table – 5.8: City - wise Cargo carried between India and ASEAN from Tamil Nadu
(Numbers in Tonnes)
City wise pair From Deficit / CAGR

Year To India Total
India surplus (%)
Bangkok - 2004 3705.00 2945.00 -760.00 6650.00
4.13
Chennai 2013 4410.60 5158.40 -747.80 9569.03
Jakarta - 2004 31.00 3.00 -28.00 34.00
-
Chennai 2006 0.00 2.00 2.00 0.00
Kuala lumpur - 2004 5784.00 8213.00 2429.00 13997.0
-9.78
Chennai 2013 3401.60 2141.20 1260.40 5542.74
Kuala lumpur – 2007 0.00 0.00 0.00 0.00
-
Tiruchirapalli 2011 419.99 0.00 -419.99 419.99
Singapore - 2007 10589.0 12124.0 1835.0 23013.0
-4.03
Chennai 2011 10188.6 6367.8 -3820.8 16556.4
Singapore - 2007 2.0 2.0 0.0 4.0
137.06
Coimbatore 2011 116.7 9.6 -107.0 126.3
Table 5.8 shows the city - wise cargo carried between India and ASEAN
.When compared air cargo flow between India and ASEAN records freight
surplus for Cargo carried from Chennai to Kuala lumpur but CAGR show a
negative effect with -9.78 percent . From Chennai International Airport large
quantity of cargo is carried. Whereas, the cargo carried to Singapore from
Coimbatore Airports vice versa shows a deficit and CAGR shows 137 percent.
Table – 5.9: Indian Airlines – wise Flights between ASEAN and Tamil Nadu
(Flights per week)
Metro Cities Air India Jet Airways Spice Jet Indigo Total
Chennai—Singapore 7 7 7 21
Singapore – Chennai 7 7 7 21
Chennai – Kualalumpur 4 4
Kaula lumpur – Chennai 4 4
TierI/Tier II
Tiruchirapalli - Singapore 7 7
Singapore- Tiruchirapalli 7 7
207

The table 5.9 shows the Indian airlines wise flights between ASEAN and
Tamil Nadu every week .Air India, Indigo and Jet Airways fly on all days in a
week totally 42 flights per week fly to Singapore from Chennai. Whereas there
are four flights a week to and from Chennai to Kuala lumpur. However, in case
of Tier I and Tier II cities jet airways, Spice jet and Indigo have no direct flights
to ASEAN countries.
Table – 5.10: Airlines – wise Flights between Tamil Nadu and ASEAN
(Flights per week)
Metro Cities Singapore Bangkok Malaysia Thai Malindo Tiger Silk Scoot Air
Total
Airlines Airways Airlines Airways Air Air Air $ Asia
Chennai—
Singapore 7 11 3 7 28
Singapore –
Chennai 7 11 3 7 28
Chennai-
Bangkok 12 12
Bangkok-
Chennai 12 12
Chennai –
Kualalumpur 14 14 28
Kaula lumpur
– Chennai 14 14 28
TierI/Tier II
Coimbatore-
4 4
Singapore
Singapore -
4 4
Coimbatore
Tiruchirapalli-
13 13
Singapore
Singapore -
13 13
Tiruchirapalli
Source: Compiled from Air Transport Statistics, DGCA, New Delhi
The table 5.10 shows the direct flights ply from ASEAN countries to
Tamil Nadu. Singapore Air, Malaysian Airlines, Thai Airways, Tiger Air and
Air Asia. Singapore Airlines has the highest frequency of flights operating
between India and ASEAN from Chennai city. Thai Airways has direct flights
between all metro cities in India to Bangkok .Malaysian Airlines have the
highest frequency of 56 flights per week operations shared between Air Asia
208

and Malaysian Airlines. In case of Tier I and Tier II cities, Tiruchirapalli has the
highest frequency of 26 flights per week.
Table - 5.11: List of Airlines Operating from International Airports in Tamil Nadu
Sl.No Name of Airlines Code Destination

1 Air India (NACIL-A) AI ASEAN
2 Air Arabia G9 -
3 Air Asia AK -
4 Air India Express IX -
5 Air Mauritius MK -
6 Air Seychelles HM -
7 British Airways BA --
8 Cathay Pacific CX -
9 Emirates EK
10 Etihad EY -
11 Gulf Air GF -
12 Air India (NACIL –I) IC ASEAN
13 Jet Airways 9W Singapore
14 Kuwait Airways KU -
15 Kingfisher IT -
16 Lufthansa LH -
17 Malaysia Airlines MH Malaysia
18 Oman Air WY -
19 Qatar Airways QR -
20 Saudia Airlines SV -
21 Singapore Airlines SQ Singapore
22 Silk Air MI Singapore
23 Spice Jet SG Bangkok
24 Srilankan Airlines UL Srilanka
25 Thai Airways TG Bangkok
26 Tiger Air TR Malaysia
Source: skyscanner Ltd(GB),http://www.skyscanner.com/flights-to/maa/airlines-that-
fly-to-chennai-airport.html.
The above table 5.11 portrays the list of Airlines that operates to ASEAN
countries from International Airport Chennai. Air traffic of both passenger and
cargo has risen as the country has entered the higher growth path. Steady
increase is the sign of growing economy. The number of passengers has grown
much faster in India in recent years. About six routes of India’s city pair wise
209

international air traffic routes fall between India and ASEAN connecting
Chennai with Singapore and Bangkok.
Table - 5.12: List of Airlines Operating from Domestic Airports in Tamil Nadu
SI.No. Name of Airlines Code

1. Air India (NACIL –I) IC/CD
2. Indigo 6E
3. Jet Airways/Jetlite 9W/S2
4. Kingfisher IT
5. Spicejet SG
source: skyscanner Ltd(GB),http://www.skyscanner.com/flights-to/maa/airlines-that-fly-
to-chennai-airport.html.
Port Linkages in Tamil Nadu

Among the 12 major ports Chennai city port is the third largest in the
coromandal coast. The maritime trade started in 1639 when it was an open
exposed sandy coast. An artificial port was built by 1881. Even in the first
couple of years since its inception the port registered traffic of 3 lakh tonnes of
cargo handling 600 ships. The port was vulnerable to cyclones and the accretion
of sand inside the basin due to underwater currents. Hence there was a shift of
the entrance of the port entrance from the eastern to the northeastern side which
largely protected the port from natural calamities. By 1920, the port was
equipped with docks with four berth facilities along with transit sheds and ware
houses and the yard could facilitate transfer of cargo from land to sea and vice
versa. In the 1940s more berths were added .After Indian Independence the
Chennai port started gathering more momentum and development. The
topography of the port changed again in 1964 when Jawahar dock with its 6
berth capacity was handling bulk cargoes like coal, Iron ore , Fertilizer and non
– hazardous liquid cargoes which were curved from the southern side of the
port. The port developed an outer habour named Bharathi Dock for handling
Petroleum. 12
Modernisation of Chennai Port

The following are the major projects for the modernization of the Chennai port
 Stage I: Realigning of rail and road network inside the Harbour at an
estimated cost of `40 crores was taken up and work completed.
 Stage II: works will be taken up after laying of 3rd and 4th railway line
by Southern Railway
210

 Creating additional space of 7.8 hectares behind EQ at an est. cost

`18.50 crores. During the 'Thane' cyclone in December 2011, some
portion of the revetment breached and in few locations undermining
took place. The Contract for rectification work has been awarded on
25.06.12.
 Creating additional space of 60 hectares near gate No.1 is deferred
since this area is covered under area earmarked for proposed Chennai
Mega Terminal.
 Modernization of Six Jawahar Dock Berths for deepening to -14m CD
(Estimated Cost of `43.54 crs)
 Capital dredging work at Dr. Ambedkar Dock, Jawahar Dock .
Of all the major means of transportations, the greatest impact upon the city
has been by the seas, i.e. ports. The ports in around the city of Chennai, today
handles a large volume of cargo and has facilitated in a major way in
transforming the city as a hub for manufacturing. However the history of the
Chennai traces to the fishing village of Chenna Patinam that facilitated British
trade with this region. It was this commercial tie that finally paved the way in
making Chennai (formerly Madras) into the metropolis that it is today. With the
number of car manufacturing companies located around Chennai, potential
exists for large-scale car exports through pure car carriers (PCC) shipment. In
fact shippers have already started from July, 2000 onwards.13
Chennai Port is working round -the-clock, 7 days a week, to facilitate

more export & import through Port of Chennai. The Port also conducts Port
Users Meeting periodically to ensure customer satisfaction by maintaining
effective service quality to augment exports. Private equipment is allowed in
certain operational areas to augment rate of loading/discharging of dry bulk
cargoes. A rebate of 10 percent in wharfage on the quantity handled in excess
of 10 percent over and above the previous year's throughput by an individual
importer/exporter subject to a minimum handling of 50,000 MT per annum in
the previous year. The Terminal Handling Charges at Chennai Port’s Container
Terminal are quite competitive even when compared to the Terminal Handling
Charges collected at the Regional Ports viz. Colombo and Singapore.
211

MAP – INSTITUTIONAL REFORM, DEVELOPMENT AND CONNECTIVITY
212

MAP – MEKONG-INDIA ECONOMIC CORRIDOR
The proposed Mekong-India Economic Corridor that connects Bangkok and Chennai via Dawei
Port in Southeastern Myanmar needs infrastructure boost, especially trunk roads in Myanmar. India
could play a part by assisting its neighbours in infrastructure building
and financing.
Ref. Institute of Strategic and International Studies, Malaysia
213

All this has significant bearing on the Port’s performance making this port
a trendsetter in export performance envisaging the following advantage for Port
Users. The concept of single window clearance is adopted by Chennai Port and
an Export Documentation Centre housing Customs, Chennai Clearing and
Forwarding, Dock Labour Board, etc. is located inside the port complex; The
cargo is given 10 percent rebate on wharfage and the weight of the pallet is not
taken into account for the purpose of calculating wharfage; 30 days free day
time is allowed for aggregating the export cargo on the wharf before the arrival
of the vessel; Open space is made available in transit area for export cargo such
as barytes, quartz, on rental basis. Demurrage for export goods lying in transit
shed beyond 30 days is charged on minimum flat rate basis of Rs.3 per
wharfage unit per day or part thereof.100 percent waiver of heavy lift charges
on Export of Raw Granite Blocks. Preferential allotment of space for storage of
export cargo and for export of motor cars, jeeps and vans using the Ro-Ro
system an export promotional wharfage rate on ad valorem basis of only 0.3
percent of FOB value is charged. The Chennai Port also offers Priority berthing
facilities for Export Oriented vessels. In addition, a scheme called Priority Berth
Reservation Scheme approved by Government for berthing vessels on arrival on
payment of Berth Reservation Fee is being made popular among the trade. To
facilitate export of iron ore through Chennai Port, Iron Ore Pellets & Lumps are
being allowed to be exported through Jawahar Dock.14
Import Counters for filing Import Applications are kept open on all Board
Holidays except on Board’s Closed Holidays and Sundays. Storage Charges on
abandoned FCL containers is restricted up to 2 months. In case the Trust is
unable to supply Mechanical Equipment, use of private equipment is permitted.
Weighment is not at all required for Dry Bulk Cargoes, when the port is unable
to trace the package at the time of delivery owing to congestion or wrong
sorting or incorrect tally, Additional Free Days are allowed from the date of
receipt of enquiry till the package are traced out and intimated. The table
depicts the number of vessel handled in the major and minor ports. The ports
of Py-3 oil field are used for oil refinery and exploration. The Thirukkadaiyur
port is for captive use under the private entrepreneurship. All minor ports are
anchorage ports where cargo is transshipped through barges and lighters.
214

Table - 5.13: Vessels entered in Tamil Nadu from 2000- 2007

Vessels in Nos.
Name of the Port / 2000- 2001- 2002- 2003- 2004- 2005- 2006-
Year 2001 2002 2003 2004 2005 2006 2007
Major Ports
1. Chennai 2201 2141 2079 2140 2269 2382
2. Thoothukkudi 1108 1421 1458 1517 -- 1576 1533
(1236)
3. Ennore Port Limited NA 166 174 171 202
Minor ports
Cuddalore 2 1 - - - - 3
Nagapattinam 32 20 15 35 36 35 40
Rameswaram - -- - - - -
Pamban - -- - - - -
Colachel - -- - - - -
Kaniyakumari - -- - - - -
Valinokkam 1 1 - - - -
Ennore Minor Port 11 9 8 9 9 11 13
PY-3 Oil Field 4 9 10 15 15 20 19
Thirukkadaiyur 11 11 22 11 11 4 11
Kundakulam Declared as minor - 1 5 16 9
Thiruchopuram ports for the use of - Non- Non- NOP NOP
Punnakkayal private entrepreneurs - opera opera NOP NOP
Manappad and the ports are yet - tional tional NOP NOP
Kattupalli to be activated- portsNOP ports NOP
Source:1. Deputy Director, Madras Port Trust, Chennai-1 (A. Major Ports – Item.1), 2.
The Traffic Manager, Thoothukkudi-4 ( A. Major Ports – Item.2), 3. Ennore Port
Limited,Ennore (A. Major Ports – Item.3), 4. Tamil Nadu Maritime Board, Chennai-17
(B.Minor Ports), * Non-Operational Ports.
215

Table- 5.13.1: Vessels entered in Tamil Nadu from 2008 -2014

Vessels in Nos.
Name of the Port / Year 2008- 2009- 2010- 2011- 2012- 2013-
2009 2010 2011 2012 2013 2014
Major Ports
1. Chennai 2761 2903 2842 2700 2445 2430
2. Thoothukkudi 1524 1414 1421 1492 1421 1159
3. Ennore Port Limited 254 270 294 388 475 697
Minor ports
Cuddalore 1 17 33 35 33 40
Nagapattinam 43 63 79 60 79 37
Rameswaram - 0 0 0 0 0
Pamban - 0 0 0 0 0
Colachel - 0 0 0 0 0
Kaniyakumari - 0 0 0 0 0
Valinokkam - 0 0 0 0 0
Ennore Minor Port 4 5 7 7 7 8
PY-3 Oil Field 9 7 11 5 11 0
Thirukkadaiyur 32 22 9 13 9 20
Kundakulam 0 0 0 0 0 0
Thiruchopuram 3 6 1 0 1 0
Punnakkayal NOP 0 0 0 0 0
Manappad NOP 0 0 0 0 0
Kattupalli NOP 0 0 4 2 35
Source:1. Deputy Director, Madras Port Trust,Chennai-1 (A. Major Ports –Item-1),2.
The Traffic Manager,Thoothukkudi-4 1 (A. Major Ports –Item-2), 3. Ennore Port
Limited Ennore (A. Major Port- Item -3), 4. Tamil Nadu Maritime Board, Chennai-17
(B.Minor Ports) * Non-Operational Ports.
The table 5.13 and 5.13.1 gives the details about number of vessels
passing through the major ports of Chennai, Thoothukodi and Ennore, the entry
and exit at the minor ports too. The capacity of loading and unloading of cargo
and the traffic management is clearly depicted. Some ports are used as stop over
and some minor ports at kundakulam, Thirochopuram and Kattupalli are
opertative ,Punnakkayal, Mannapad ports are Non operational ports.
Cargo Handled in Tamil Nadu

The ports of Tamil Nadu handles a large quantum of cargo to various part
of ASEAN Countries.
216

Table - 5.14: Cargo handled in Tamil Nadu from 2000 – 2008

Value Metric Tonne
Name of the 2001- 2002- 2003- 2004- 2005- 2006- 2007-

2000-2001
Port / Year 2002 2003 2004 2005 2006 2007 2008
Jor Ports
361100 47250
1. Chennai 41,220,000 33687106 36.71 43.80 57.154
00 000
9,992,625 130173 17138 18703 1870335
2. Thoothukkudi 13293526 13678421 --
(12284000) 02 858 350 0
3. Ennore Port 91675 10713 1071353

-- -- NA 9276704 9479753
Limited 64 535 5
Minor ports
Cuddalore 3077 1514 - - - - 12880 82436
33706 30951
Nagapattinam 70267 49293 79884 306875 418552 326858
3 9
Rameswaram -- -- - - - - -
Pamban -- -- - - - - -
Colachel - -- - - - - -
Kaniyakumari - -- - - - - -
Valinokkam 492 1544 - - - - -
Ennore Minor
55.036 50368 43275 54038 54038 55952 68781 45388
Port
25547 25856
PY-3 Oil Field 161,325 268022 198958 177506 177506 163762
4 2
14990
Thirukkadaiyur 164406 280739 151114 151114 53800 268713
7
Kudankulam Declared as minor - 603 603 8115 5183 227
Thiruchopuram ports for the use of - NOP NOP NOP
Non-
Punnakkayal private entrepreneurs - Non- NOP NOP NOP
operation
Manappad and the ports are yet to - operation NOP NOP NOP
al ports
Kattupalli be activated - al ports. NOP NOP NOP
Source: 1. Deputy Director, Madras Port Trust, Chennai-1 (A. Major Ports – Item.1)
2. The Traffic Manager, Thoothukkudi-4 ( A. Major Ports – Item.2)
3. Ennore Port Limited,Ennore (A. Major Ports – Item.3)
4. Tamil Nadu Maritime Board, Chennai-17 (B.Minor Ports)
* Non – Operational Ports
217

Table - 5.14.1: Cargo handled in Tamil Nadu from 2008 – 2014

Value metric Tones
Name of the Port / 2008- 2009- 2010- 2011- 2012- 2013-

Year 2009 2010 2011 2012 2013 2014
Major Ports
1. Chennai 57.154 61.06 614600 5571000 53.40 51.10
00 0
2. Thoothukkudi 2201106 237899 257272 2810530 2825967 2864241
7 47 62 8 9 1
3. Ennore Port 1150017 107028 110093 1495630 1788510 2733741
Limited 5 94 59 4 1 3
Minor ports
Cuddalore 4963 119936 211428 229690 246612 265163
Nagapattinam 389749 604955 860805 629943 371802 307132
Rameswaram - 0 0 0 0 0
Pamban - 0 0 0 0 0
Colachel - 0 0 0 0 0
Kaniyakumari - 0 0 0 0 0
Valinokkam - 0 0 0 0 0
Ennore Minor Port 21404 44504 58427 46302 28786 40897
PY-3 Oil Field 114299 68364 151493 58614 0 0
Thirukkadaiyur 361414 326656 327201 234788 273935 242990
Kudankulam 232 231 0 0 0 0
Thiruchopuram 4104 9776 1234 0 0 0
Punnakkayal NOP 0 0 0 0 0
Manappad N OP 0 0 0 0 0
Kattupalli NOP 0 0 10330 11904 10151
Source: 1. Deputy Director, Madras Port Trust, Chennai-1 (A. Major Ports – Item.1)
2. The Traffic Manager, Thoothukkudi-4 ( A. Major Ports – Item.2)
3. Ennore Port Limited,Ennore (A. Major Ports – Item.3)
4. Tamil Nadu Maritime Board, Chennai-17 (B.Minor Ports)
* Non – Operational Ports
The table 5.14 and 5.14.1 shows the cargo handle throughout the ports in
Tamil Nadu. The Thoothukkudi Port handles the large quantum of cargo
followed by Chennai Port. The minor port of Nagapattinam serve as a captive
port and anchorage stop over for ships. Whereas, the port of PY-3 Oil field is
used for exploration and oil refinery purpose. The highest quantum being
2,68,022 metric tones in the year 2001-2002 and has decreased the capacity of
1,63,762 in the year 2007-08.The Port of Kundakulam, Thiruchopuram,
218

Punnakakayal, Manapad and Kattupalli are declared as minor ports for the
private entrepreneur currently ports are activated.
The port provide the facilities to export oriented industries and port based
industries to ease the traffic and cargo along the coast. The ports of
Kanyakumari is used for ferry service and the port of Valikonam is used for
ship breaking activities. Colachel port to be developed as International
Transshipments Hub Port for handling container ships.
Growth and Development of Transport in Tamil Nadu

The State transport services play a vital role in providing a variety of
services viz., town, mofussil, ghat and express services. Due to increased
urbanisation and exponential growth of vehicles, road infrastructure deficit
continues and there is an enormous demand for dependable urban mass transit
system. In fact, highways carry huge volume of passenger traffic and freight
traffic in the State. This sector thus needs special attention. Efforts are needed
to improve the road conditions and to reduce accidents. International trade
volumes have been growing faster than GSDP and will continue to do so,
indicating the need to build adequate capacity in the ports. Further, appropriate
linkages between ports, industrial corridors and railways need to be completed.
To meet these expanding demands large investments are needed. Public sector
may not be able to raise the required resources and this will be supplemented by
investments by the private sector in Public Private Partnership (PPP) mode.
Tourism Tamil Nadu has a number of historical monuments and sites. It also
has many popular and ancient temples. It has two important clusters of world
heritage sites: (i) the group of monuments at Mamallapuram and (ii) the Great
Chola Temples-Brahadiswara temple in Thanjavur and Gangai
Kondacholapuram in Jayankondam and Airavatesvara temple in Darasuram.
The State witnessed a Twelfth Five Year Plan with 31 inflow of over 184.1
million domestic and 3.6 million foreign tourists in 2012. The vision is to make
Tamil Nadu an attractive international and domestic tourist destination and
preserve our rich cultural heritage and monuments of architectural splendour.
Our strategy is to promote all these sites to attract around 7 million foreign
tourists by the year 2017 and 15 million foreign tourists by the year 2023.
Efforts are also made to promote medical tourism, eco-tourism, adventure
tourism, heritage tourism and pilgrimage tourism. Of 788 places in the world
declared by UNESCO as heritage sites, 26 are in India.
219

Table - 5.15: Trends in Registered Vehicle Population from 2000 – 2014

(Lakh Nos.)
Year Non-Transport Vehicle

Transport Total Growth
Vehicles Density per
Vehicles Vehicles Rate (%)
Sq.Km.
2000-01 - - - - - -
2001-02 - - - - - -
2002-03 4.57 50.74 6.78 62.09 9.74 47.79
2003-04 4.72 55.48 7.32 67.52 8.75 51.83
2004-05 4.94 61.06 8.04 74.04 9.66 56.83
2005-06 5.81 67.50 8.91 82.22 11.05 63.11
2006-07 6.08 75.03 9.93 91.04 10.73 69.89
2007-08 7.06 82.60 11.03 100.69 10.60 77.29
2008-09 7.84 90.35 11.21 110.40 9.64 84.74
2009-10 8.34 99.70 13.53 121.57 10.12 84.92
2010-11 9.29 112.07 15.25 136.61 12.37 93.52
2011-12 10.01 126.60 17.08 153.69 12.50 118
2012-13 10.43 141.50 18.99 170.92 11.21 131
2013-14 11.05 155.61 20.76 187.42 9.65 144
Source: Tamil Nadu An Economic Appraisal, Evaluation and Applied Research
Department, Government of Tamil Nadu, in Chennai , 2015.
The table 5.15 shows the vehicle growth over the year with the changes in
the infrastructure and increase in routes enabling the modes of transport such as
auto rickshaws, taxis, motor cars and omnibuses which have been the cause of
increasing the vehicle traffic. The number of transports vehicles has increased
from 4.57 lakhs in the year 2002-2003 to 11.05 lakhs transport vehicles in
2013-2014 which has grown approximately two and half times. The Non-
transport vehicles were 50.74 lakhs in the year 2002-2003 which has increased
to 155.61 lakhs in the year 2013-2014 this could be due better road Facilities,
Funds to own the vehicle has been easier and at cheaper rate of interest. The
growth rate of vehicles in 2011 and 2012 has been 12.50 percent for the year
2013-14 has reduced by 1.56 percent when compared with the previous year.
220

221

222

223

The table 5.16 depicts Number of Newly Registered Motor Vehicles in

Tamil Nadu from 2003 to 2012. The data give the details of the category and
types of vehicles registered in different years. Under the types it is classified as
transport and non transport whereas in category the classification Multiaxled /
Articulated Vehicles, Trucks & Lorries, Light Motor Vehicles (Goods), Light
Motor Vehicles (Passengers), Buses, Taxis, Motor cycles on hire, Two
wheelers, Cars, jeep, Omni buses, Tractors, Trailers and other vehicles not
covered. On the basis of types of vehicles we have four wheelers, three
wheelers, two wheelers, scooters, mopeds, Cars, jeep, Omni buses, etc. on
seeing the table it is evident that there has been a growing trend in the
purchase of vehicles in Tamil Nadu.
Tourism in Tamil Nadu

Tourism in India has seen as a mere service sector for long time. It has
now been recognized as export industry due to its multiple advantages and has
become the priority of states to make tourism a mass movement for promoting
entrepreneurship, poverty reduction and economic development. Tamil Nadu is
strategically placed as growth axis and gateway for Asian countries. Well
integrated world class infrastructure and amenities at various tourist spots
continue to draw attention of tourist and contributes towards Foreign exchange
earnings.15
Tamil Nadu is bestowed with world heritage attractions. This is the

highest for any State. Tamil Nadu Government declared 48 Heritage places in
the State. These places will be linked with Temples in Trichy, Madurai,
Chidambaram, Rameswaram, Tiruvanamalai, Thanjavur, Kumbakonam,
Nagapattinam, Tirukadaiyur, Gunaseelam and six abodes of Lord Muruga. The
places of worship are symbols of spirituality and more importantly of national
integration and communal harmony. They are year round tourist destinations.
All the important roads leading to the heritage places, high density temples and
shrines will become integral part of Cleanliness Drive movement. These
stretches will become the focal point for Litter Free Zones/Plastic Free Zones/
Green Zones. The Chennai Mamallapuram and similar heritage stretches will be
given a facelift in terms of Waste Management with an enhanced thrust on
maintenance.16
224

Table - 5.17: Foreign Tourists Arrivals to India and Tamil Nadu from 1993 - 2013
Year Foreign Foreign Tourists Percentage AGR of Foreign

Tourists Arrivals to Tamil share Tourists Arrivals to
Arrivals to Nadu Tamil Nadu
India
1993 1764830 167560 9.49 0
1994 1886433 197772 10.48 18.03
1995 2123683 249185 11.73 26.00
1996 2287860 259825 11.36 4.27
1997 2374094 269228 11.34 3.62
1998 2358629 264265 11.20 -1.84
1999 2184928 289813 13.26 9.67
2000 2641157 333877 12.64 15.20
2001 2537282 403424 15.90 20.83
2002 2370121 435473 18.37 7.94
2003 2726213 498121 18.27 14.39
2004 3456698 585751 16.95 17.59
2005 3918610 613982 15.67 4.82
2006 4447167 636642 14.32 3.69
2007 5081504 636400 12.52 -0.04
2008 5282603 625480 11.84 -1.72
2009 5167699 618952 11.98 -1.04
2010 5583746 685518 12.29 10.75
2011 6290319 822568 13.1 19.99
2012 20731495 3561740 17.18 333.00
2013 19951026 3990490 20.0 12.03
AAGR 63.21 24.63
Source: Tourism Statistical Information, 1993-2010,Chennai.
The arrival of foreign tourist to Tamil Nadu is provided in table 5.17. It

Illustrates the foreign tourist arrivals to India and Tamil Nadu between 1993
and 2013. It is evident that Average Aggregate Growth Rate for India is 63.21
per cent whereas for Tamil Nadu the AAGR shows 24.63 per cent. This makes
it clear that facilities provided facilitate the tourist to explore new places or seek
a change of environment. There are multitude choices from beach resort, hill
225

station, Adventure holidays to cultural tours, heritage packages to wild life

sanctuaries are offered by the State of Tamil Nadu.
Table - 5.18: Tourist Arrivals in Tamil Nadu from 2000 – 2014

(in lakhs)
Year Domestic Foreign Total

2001 23812043 773073 24585116
2002 24661754 804641 25466395
2003 27059002 901504 27960506
2004 30076832 1058012 31134844
2005 32339478 1179319 33518787
2006 39214721 1335661 40550382
2007 50647188 1753103 52400291
2008 62618252 2040419 64658671
2009 78037607 239050 80406657
2010 103010435 2804504 105814939
2011 136750750 3308438 140059188
2012 184136840 3561740 187698580
2013 244232487 3990490 248222977
2014 327555000 4658000 332213000
2015 333459000 4685000 338144000
Source: Commissioner of Tourism, Chennai. Compiled from
www.tamilnadutourism.org/pdf/tour-e-in-2014-15.pdf.
Table 5.18. portrays the arrivals of tourist both foreign and Domestic.
The flow of both foreign and domestic tourist is due to the promotion activities
offered by the state. The states attract more tourists by conducting fairs and
festivals, providing infrastructural facilities and identifying heritage towns and
their preservations. Over the years there has been awareness about our culture
and heritage which resulted in inflow of domestic tourist in to the state. The
flow of foreign tourist has also increased over the years depicted in the table.
226

Infrastructure Projects of Tamil Nadu

In Tamil nadu, Road and Bridge is being developed between Kanyakumari
– Tiruneveli and Pondi and Chennai corridor. The Tamil nadu road sector
projects is also being planned, there is another Road Bridge that is planned in
the Salem Cuddalore Expressway and Trichur- Kanyakumari expressway. High
speed Railway system is being planned between Bangalore and Chennai and
Coimbatore and Ernakulam. A new international airport is being planned in
Sriperumbattur and the Sethusamdrum is a long term ongoing project in the Bay
of Bengal.
Table – 5.19: India Connectivity: Tamil Nadu
Cost
Type Sector Subsector Project Name (Us $ Status
Million)
Kaniyakumari-
NA logistics Road/bridge tirunelveli-pondi- NA Prospective
chennai express
Tamilnadu road sector
Public logistics Road/bridge 542.0 Ongoing
project (TNRSP)
Coimbatore-Erode-
NA logistics Road/bridge NA Prospective
Salem-Expressway
Salem-Caddalore-
Expressway
Trichur-Kanyakumari
expressway
High speed Rail (HSR)
system between
Public logistics Railway NA Prospective
Chennai – Bangalore-
Coimbatore-Ernkulum
New International
Public
logistics Airport Airport at NA Prospective
PPP
Sriperumbudur
Public Sethusamundram
logistics Port/Maritime 1213.5 Prospectives
PPP Project.
Source : ASEAN-India Connectivity Report, India Country Study, Research and
Information System for Developing Countries.
227

The World Bank Assistance from the Government of India for the second
Phase of Tamil Nadu Road Sector Project (TNRSP). The project is externally
aided project implemented by the State at a cost of Rs.8583 Crores and covering
1678 km. The purpose is to improve the road links with high density traffic. An
amount of Rs. 65 Crores were sanctioned for the project preparatory Fund to
infrastructure Development Board. 17
Comprehensive Road Infrastructure Development Programme

To upgrade 2,000 kilometres six lane to eight lane and 5,000 kms of four
lane to six lane. Widening of Chennai-Tiruttani- Renigunda Road as major
project. widened 55 kilometres of two lanes and to strengthen 1,170 kilometres
of road. To improve Chennai, Tiruchy, Puddukottai, Sivaganga, Tiruvanamalai,
Tirunelveli, Kanchipuram, Ariyalur, Perambalur and Virdhunagar district.18
Table – 5.20: Prioritized project of Tamil Nadu Infrastructure Development
Sl.No. Key Projects Indicative

Costs
(Rs. in Crore)
1. High Priority State Roads Upgradation Project 10,000
2. Madurai - Thoothukudi Industrial Corridor 40,000
3. Restoration of Chennai Water Ways 10,000
4. Ultra Mega Power Project - Uppur 10,000
5. Solid Waste Processing Facility for Chennai 1,500
6. Integrated Financial Services Centre (Financial City) 1,500
7. Large Scale Skill Development Initiative 6,000
8. Development of One Green / Brown Field Port, Cuddalore 2,000
9. Greenfield Airport at Sriperumbudur 15,000
10. Health City at Perundurai 2,000
11. Chennai Desalination Plant 3,000
12. New Water Reservoir in Thiruvallur District 500
13. Development of Agriculture/Horticulture in Wastelands Cost to be
ascertained
Source: http://www.tnidb.tn.gov.in/Prioritized_Projects.php
228

Due to increased urbanisation and exponential growth of vehicles, road

infrastructure deficit continues and there is an enormous demand for dependable
urban mass transit system. In fact, highways carry huge volume of passenger
traffic and freight traffic in the State. This sector thus needs special attention.
Efforts are needed to improve the road conditions and to reduce accidents.19An
efficient, reliable and safe transport system is a vital requirement for overall
economic development. The State’s vision is “to increase the capacity,
connectivity, efficiency and safety of the highways system” and “to improve the
level of transport service to the public”. Link roads to all the habitations with
more than 1000 population in the State are already provided. Now efforts are
made to cover all habitations. The State transport services play a vital role in
providing a variety of services viz., town, mofussil, ghat and express services.20
However the twelfth plan aim at:

 Modernising many State highways with four lanes and conversion of
other State highways and other highways to two lane roads with paved
shoulders,
 Promoting Integrated public transport system,
 Developing minor ports along the east coast through PPP,
 Establishment of green field minor ports,
 High speed passenger rail link connecting Chennai, Coimbatore,
Madurai and Kanniyakumari, and
 Modernising and expanding the airports in the State.
The strategies suggested in the Twelfth Plan are: Comprehensive Road

Infrastructure Development Programme (CRIDP) to strengthen and widen the
roads and to construct/improve the bridges/ culverts,
 Improved Road Quality and Efficiency through Road Management

System and Strategic Option Study,
 Road Accident Data Management System (RADMS),
 Road Safety Action Plan to reduce road casualty,
 Improved public transport services by purchasing 15,000 new buses
and 40,000 electronic ticketing machines,
229

 Mono Rail Network connecting various parts of Chennai and Tier II

cities
 Chennai Unified Metropolitan Transport Authority (CUMTA) to
integrate all modes of transport
 Greenfield airport complex in Chennai and upgrading existing airports
in Coimbatore, Trichy and Madurai to international standards,
 Setting up of captive ports, Jetties, and Moorings for the port based oil
industries, thermal power plants etc., and
 Building Road Over Bridges (ROB) and Road Under Bridges (RUB) at
the cost of 3000 crore in the Infrastructure Development has not kept
pace with economic development.
International trade volumes have been growing faster than Gross Domestic
Product (GDP) and will continue to do so indicating the need to build adequate
capacity in the ports. The strategies to meet these requirements are improving
the road capacity with new connectivity and upgrading roads, computerized
road management system, comprehensive road and traffic planning, creation of
minor ports with private partnership, introducing Mono Rail system linked with
Metro Rail system, modernization and expansion of airport. The Government
has already constituted the Tamil Nadu Infrastructure Development Board to
create a congenial environment for facilitating speedy implementation of
critical infrastructure projects that will drive the growth. Critical bottlenecks in
infrastructure development should also be addressed to sustain higher growth in
the Service Sector so as to achieve an overall growth of above 10 percent
economic growth also needs to be more inclusive and reduce urban-rural
disparity. To develop infrastructure facilities concentrating on major areas like
Roads, Power, Ports etc., resources are needed which are much larger than the
public sector can provide. The public investments are needed to be
supplemented by private investments in Public Private Partnership (PPP) mode.
In addition the Private Public Partnership will also be encouraged.21
230

Table – 5.21: Fish Processing and Solid Waste Management

Projects approved in – Principle
Sl.No. Project Name

1. Development of Fish Processing Park-Nagapatinam
2. Development of Fish Processing Park-Cuddalore
3. Solid Waste Management Project of Corporation of Chennai
Table – 5.22: Tamil Nadu Infrastructure Projects in Pipeline
Sl.No. Project Name

1. Waste Energy implementation - Energy Project in PPP in Tirunelveli City
2. Development of Tamil Nadu Maritime College at Thoothukudi - Tamil Nadu
Maritime Board
3. TNSTC(Villupuram) Ltd - Consultancy Assignment for Transaction Advisory to
develop a model through BOT for the vacant lands at Vikravandi and
Ulundurpet
4. Establishment of Mid Sea Fish Processing unit cum Carrier mother Vessel on
Public Private Partnership mode - Pre-Feasibility Report
5. Chennai Corporation- Construction of 5000 modern Shell units under BOT
basis
6. Construction of Fishing Harbour at Manakudy in Kanniyakumari Dist. Under
PPP Mode
7. Setting up of World Class Oceanarium at Mamallapuram under PPP mode
8. Thoothukudi UGSS/UNPR implementation of STP - Execution
9. Chennai Corporation - Bus Route Roads Department - Construction of Multi-
Level Car Parking at Bashyam Road
10. Consultancy assignment for organisation of existing Bus Shelters and
Construction of New Bus shelters in Town Panchayats in Tiruvallur District.
11. TAMIN - Manufacturing of Industrial sand from quarry waste
12. TNSTC(Villupuram) Ltd - Consultancy Assignment for Transaction Advisory to
develop a model through BOT for the vacant lands at Vikravandi and
Ulundurpet
13. Setting up of a School with Hostel facility for the Children of the workers
registered with unorganised workers Welfare Board in PPP mode
14. Establishment of Fish Processiong Park at Eravanur in Tiruvallur District
15. Tamil Nadu Slum Clearance Board - Multi Storey Office Complex at Nandanam
under PPP mode
231

The major prioritized projects in Tamil Nadu are the Madurai-

Thoothukodi Industrial corridor at a cost of almost 40,000 Crores. Similarly the
Restoration of Chennai water ways is an priority project at the cost of 10,000
crores. Ultra Mega Power Project – Uppur at a cost of 10,000 crores and Solid
waste disposal project for Chennai at a cost of 1,500 crores, Development of
One Green / Brown Field Port, Cuddalore is also planned at a cost of almost
200 crores and a Greenfield Airport at Sriperumbattur at a cost of 15,000 crores,
Perundurai Helath city is planned at a cost of 2,000 crores and Chennai
desalination plant is targeted at a cost of 3,000 crores. Water solid wastes and
development of Greenbelt have been priority projects for Tamil nadu
Infrastructure.
Table – 5.23: List of Projects Sanctioned under Project Preparation
Sl.No Project Name Amount to be

Funded
1 Tamil Nadu Road Sector Project- II (TNRSP II) Rs. 65 Crores
2 Development of Cuddalore Minor Port Rs. 40 Lakhs
3 Energy Efficiency Project for Street Lighting in Town Rs. 40 Lakhs
Panchayats of Erode, Tiruppur, Coimbatore and The Nilgiris
4 Development of Integrated Cold Chain Storage for Banana -
5 400 MLD Desalination Plant, Chennai Rs. 14,59,26,900
6 Chennai Metro Rail Project - Master Plan Rs. 1,00,00,000
7 BRTS in Chennai - DPR Rs. 5,00,00,000
The major projects that are approved are Development of fish Processing
park at Nagapattinam and Development of Fish Processing in Cuddalore. the
solid waste management project is also approved which is a corporation of
Chennai project There are major projects in the pipeline Waste energy
implementation in Tiruneveli. Tamil nadu maritime college at Thootukudi.
Construction of various Shell units which will be mainly under the BOT model.
The fishing habour construction Kanyakumari is all the major infrastructural
projects that are there in the pipeline.
232

Table -5.24: The Educational and Skill Developing Institute.
SL..No Type of Institution Nos

1 Universities 5
2 Arts & Science College 43
3 Medical College 6
4 Engineering Colleges 170
5 Universites 2
6 Polytechnic Institution 6
7 Technical Schools 5
8 ITI’s 5
9 Primary School 664
10 Higher Secondary School 463
Source: Chennai District, Statistical Hand book 2011-12
The Government of Tamilnadu has constituted the Tamilnadu

Infrastructure Development Fund (TNIDF) for providing financial support to
facilitate the design, development, functioning, administration, management of
projects.
The Fund can also be used to provide financial support for projects
undertaken under the public private partnership. They provide subsidy and
Operational grants. They also provide annuity payment and loans .Financial
support from the TNIDF shall ordinarily be approved only after the
opportunities to avail State support and other public financial support from the
sponsoring agency’s.22 In the field of education Chennai has the largest resource
pool in the form of graduating students suitable for IIT’s and ITES Sector and
chennai is the 4th highest number in education institution.
Reference
1. Retrieved on August, 18th 2016 from
http://agritech.tnau.ac.in/12th_fyp_tn/1.%20Overview/1.Overview.pdf .P. 11
2. Ibid.13
3. Retrieved on September, 10th 2016 http://www.spc.tn.gov.in/fiveyearplans/
default. htm
4. Retrieved on September, 12th 2016 http://www.spc.tn.gov.in/tenthplan/CH_
2_1.PDF
5. Retrieved on October, 14th 2016 http://www.chennaiport.gov.in/porSta_
Cargowiseperformance.html
233

6. Retrieved on October, 10th 2016

http:www.spc.tn.gov.in/fiveyearplans/default.htm
7. Report. (2016). ASEAN – India Connectivity Report 2016. New Delhi: Asean
India Centre. Research Information System for Developing Countries. Pg29
8. Retrieved on October, 15th 2016 http://www.chennaiport.gov.in/
abtPortProfile.html.
9. Retrieved on October, 20th 2016 http://www.chennaionline.in/city-
guide/flyover-in-chennai
10. Report. (2016). ASEAN _ India Air Connectivity Report. ASEAN- India
Centre at Research and Information System for Developing Countries. P.52
11. Retrieved on November, 10th 2016 http://www.chennaionline.in/city-
guide/flyover-in-chennai
12. Retrieved on September, 18th 2016 http://www.ustudy.in/node/4886
13. Retrieved on September, 24th 2016 http://www.chennaiport.gov.in/
abtPortProfile.html.
14. AG Leonard S.J.(2006 ). Tamil Nadu Economy. Chennai:Mac Millan India
Ltd.P.299
15. Retrieved on November, 12th 2016 http://www.newsonprojects.com/
story.asp?newscode=252336
16. Retrieved on September, 18th 2016 http://wwwtn.gov.in/dear/transport.pdf
17. Retrieved on December, 10th 2016 timesofindia.com/city/Chennai/tamilnadu-
to-spend-rs2980crores-forroad-infrastructure-development/articles/21300514.
com
18. Retrieved on May, 15th 2016 http://www.tn.gov.in/dear/Transport.pdf
19. Retrieved on September, 18th 2016 http://www.newsonprojects.com/story.asp?
newscode=252336
20. Retrieved on January,29th 2017 http:www.spc.tn.gov.in/fiveyearplans/
approachnew.pdf
21. Retrieved on August, 24th 2016 http://www.newsonprojects.com/story.
asp?newcode=252336
22. Retrieved on July, 10th 2016 http://www.agritech.tnau.ac.in/12th_fyp_tn/
1%20overview/1.Overview.pdf P.29
234

Summary and Conclusion
The four states of maritime Southeast Asia, along with Thailand, signed
the Bangkok Declaration on 8 August 1967 and formed the Association of
Southeast Asian Nations (ASEAN). Since then, the regional organisation has
expanded to its current membership of ten nations. Brunei Darussalam joined
ASEAN on 7 January 1984; Vietnam became a member of ASEAN on 28 July
1995; Laos and Myanmar on 23 July 1997; and Cambodia on 30 April 1999.
The Bangkok Declaration of 1967 adopted seven aims and purposes for the
organization. They are: a) economic growth, social progress and cultural
development; b) regional peace and stability; c) economic, social, cultural,
technical, scientific and administrative collaboration; d) mutual assistance in
training and research; e) collaboration in agriculture and industry, trade,
transportation and communications and the improvement of living standards; f)
promotion of Southeast Asian studies; and g) co-operation with regional and
international organisations. Thus ASEAN-India relations have come a long way
since the cold war. In 1990 there was a distinct rise in the interaction along with
firm measures to integrate and cooperate in the economic as well as political
spheres. Their partnership has progressed from sectoral dialogue partnership to
summit level interaction within a decade that is from 1992 to till date.
Trade performance
The growth rate of exports to ASEAN reveals that India’s major
destination for exports has been Singapore with top position and highest export.
Though Singapore occupies first position there has been increase in the exports
but the growth rate declined, still Singapore retains the number one position.
The exports of ASEAN with India show a positive growth rate with small
decline in the year 2009-2010. Singapore holds the highest position in
importing the goods from India. India’s balance of trade shows deficit which is
highest in the years 2002, 2003, 2005, 2009, 2011, and 2013. India managed to
reduce its deficit to -2.16 per cent for which, India has to increase its export to
ASEAN countries by liberalising the trade activities.
The global crisis affected the growth rate of the member countries.
Singapore weathered the crisis better than all the other member countries by
liberalising Singaporean dollars and this ensures long term competitiveness of
its economy. The rapidly growing large middle class market, large pool of
235

cheap human resources and acquired competencies in some industries and

service make India an attractive partner for trade and investment by many
countries.
The performance of the ASEAN economy though remained uneven
India’s performance has been phenomenal during the crisis. India witnessed
high growth rate but it could not isolate from the adverse impact in the last five
years. The regional trade share in ASEAN is increasing steadily but much
smaller than other regional organizations. Country wise look at the trade
intensity shows, India’s export intensity is above for Indonesia, Malaysia,
Singapore, Thailand and Vietnam. India import intensity is very low with
Brunei, Cambodia, Lao PDR, Philippines, and Vietnam reflecting the small
quantum of imports it is having with three countries.
The trade performance of Tamil Nadu can be measured for its imports and
exports. The goods exported from Chennai port are high and moderate exports
of goods are from Tuticorin port. However the exports at other ports are for
private entrepreneurs and it is operative occasionally. The imports at Chennai
are high and imports at Tuticorin port is moderate and imports at other ports are
low as these ports are for captive use. Foreign trade from Tamil Nadu to
ASEAN countries has increased.
Commodity -Wise Exports

There are about ninety nine items being exported to ASEAN, out of which
eighteen major items are highly demanded. India not only exports these items to
ASEAN countries, but also imports some of these items. The item-wise exports
shows a high demand for Air craft &parts, fish products, meat products, spices,
and sugar. Moderate demand for items such as pharmaceuticals, paper and pulp,
cotton, non-ferrous metals, mechanical appliances, electrical and electronics,
optical instruments Transport equipment and auto & components. Very low
demand for items such as petroleum products, chemicals both organic and
inorganic, special chemicals, ships, plastics and raw materials, rubber product,
MM filaments and fibre, Iron and steel and nonferrous metals. The demand for
items such as oil cakes and fodder and precious stones and jewellery is
negligible. The CAGR for 2005-06 and 2015-2016 shows surplus which ranges
between -3.6 per cent to 44 per cent.
Commodity-wise exports from Tamil Nadu for transport equipment are

highly demanded. There is a moderate demand for agro-based products,
236

ceramics, chemicals, iron & steel, marine products, cotton, food products,
pharmaceuticals, rubber and tobacco. The export and import of tobacco
products are totally banned. Commodities such as alcohol & beverage,
Aluminum & products, cereals, leather, plastics, sports goods, textile and Gems
& jewellery have low demand. The commodities exported through Tamil Nadu
seaport and airport shows an increasing trend.
Commodity -Wise Imports

India imports of items such as petroleum products, pharmaceuticals,
rubber product, precious stones and jewellery, non-ferrous metals, and auto &
components is high. There is a moderate demand for items such as pulses, palm
oil, chemicals both organic and inorganic, special chemicals, electrical and
electronics, Transport equipment, ships and optical/photo instrument and iron
and steel articles. Items such as wood & products, paper & pulp, MM
filaments/fibre, aircraft & parts are of low demand by India.
Imports had been high in Tamil Nadu for products such as aluminum &
products, ceramics, cotton, iron & steel, pharmaceutical products, Transport
equipment, printed books, Newspaper, journals, etc, vegetable oil and animal
fats, electrical product, chemicals, fertilizers, non-ferrous metals and cereals.
For commodities imported such as leather, cosmetics/toiletries, gem &
jewellery the demand is moderate.
Foreign Direct Investment

India has been investing in to ASEAN member countries and nearly 94 per
cent of investment is made in Singapore and 2.30 per cent in Malaysia and
Vietnam, 1.09 per cent in Thailand, 0.3 per cent in Indonesia and Cambodia and
very small percentage of investment in Myanmar, Cambodia, Laos and
Philippines. The Investment in to ASEAN has been high during 2010 global
crisis period and highest in 2012 and the growth also doubled manifolds during
2013. It is evident that India prefers Singapore for its Investment.
Among ASEAN members Singapore is the largest trading partner and

considers India for its investment destination. The maximum investment in
India is made by Singapore which is about 97 per cent. Malaysia falls second
with 1.57 per cent, Indonesia invests 1.19 per cent of investment, investment
made by Thailand and Philippines are 0.49 per cent and 0.42 per cent
respectively. The countries like Vietnam and Myanmar also make small
237

investments in India. The media can also play an important role in encouraging
FDI in India by projecting positive picture of the Indian Economy in the foreign
countries. It is observed that some of media present negative aspects of the
Indian economy. Its create a negative impacts on the investment plans investors.
In these circumstances the government of India should keep a strict watch on
media projections in foreign countries and try to counter and neutralise theses
adverse projections with help of its own media agonies in a more effective way.
The foreign Direct Investment inflow has increased, Tamil Nadu is

attracting with the new emerging industries such as mineral based, engineering,
leather, pharmaceuticals, cotton textiles and hosiery, readymade garment
industry, wood products, agro based industries, and chemical based industries
so on. Many industrial units have been set up for the optimum utilisation of
these mineral resources. Tamil Nadu has made a prominent place in the
international market with its handloom and hosiery products and earned
worldwide reputation. Tamil Nadu is fast becoming major destination of
automobile and components manufacturer of the world.
The major sector that Tamil Nadu attracts is Computer hardware and
Software, Construction activities, Automobile Industry, and
telecommunications. The current industrial set up of state has attracted more
Foreign Direct Investment particularly in sectors that are more skill driven and
technology driven have helped in achieving technological advancement and
more exportable products in Tamil Nadu.
Marine Connectivity
Singapore has more than 86.11 percent of liner shipping in 2006. This
signifies that Singapore has used the sea route for its international trade and
retained the first position among ASEAN countries. ASEAN countries though
surrounded by sea its access is very low and their coast do not have the capacity
to anchor large vessels and access to global market is also low.
India with largest sea coast needs to improve and increase it access to sea
route and be on par with the liner shipping index to acquire the top ranking and
access to global market. The International logistic index scores and ranking
gives the competitiveness of the land in the field of logistics and transportation.
Customs, Infrastructure, International Shipment, Logistic quality and
competence, Tracking and tracking and Timeliness are some of the criterion
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used in ranking. Logistic service has key objective of strengthening ASEAN

economic integration through liberalization and facilitation in logistic services.
Measures to liberalise logistics services are pursued under ASEAN Framework
Agreement for services (AFAS).
The number of vessels entering Tamil Nadu ports from 2000 to 2014.
There are three major ports and twenty minor ports the total number vessels
entering the Major port in the year have increased over the years. About 2,201
vessels arrive at Chennai port, 1,108 vessels to Thoothukudi Port and 61 vessels
in the other minor ports. The ports of Rameswaram, Pamban, Colachel,
Kanyakumari, Valikonam, Kundakulam, Punnakayal Manapad and Kattupalli
are declared as minor ports and are used by private entrepreneurs mostly for
captive use. The increase is the result of the trading activity in Tamil Nadu;
Since Chennai is the hub of trading activity this enhances the connectivity
between Tamil Nadu and ASEAN.
Air Connectivity
The air traffic handled at all Indian airports has increased the International
Aircraft movement at both international and domestic airports in 2012-13.
Passenger from India has increased for Singapore, The Airlines which operates
from India shows a positive growth percentage. Airlines such as Air Asia
Berhad, Bangkok Airways, show a positive growth over previous year. Airlines
operating between India and Malaysia show a decline in growth. The other
airlines operating from Malaysia such as Malindo airways and Tiger Airways
also shows a decreasing trend with a deficit but overall there is a positive
growth. Singapore Airlines, Thai Airways show a positive trend and reflects
positive growth. Myanmar Airways show a decline in growth for previous year
2014-15 but has a positive growth rate in the year 2015-16.
According to Air connectivity index Singapore has best air connectivity

th th rd
with 74 rank followed by Thailand with 75 rank and Malaysia with 83 rank.
th
Brunei has poor connectivity it is ranked 125 out of 195 ranks. The airports in
ASEAN capital cities are sufficient in terms of runway length to accommodate
the existing operations of aircrafts. Some ASEAN member’s states have
improved the airport facilities and services including construction of terminals
for private carriers. However there are some airports that face issue such as
inadequate facilities which had resulted in limited growth. Air navigation
system and procedure in ASEAN have to be harmonized to anticipate growing
239

air traffic in the region. The open skies policy since 2000 allowed regional air
carriers to take unlimited flights to all ASEAN member states and allowed rapid
air services and encouraged the growth of private led low cost carriers.
The number of flights from Chennai to Singapore round trip is twenty one
flights per week for Chennai to Kaula Lumpur round trip are four flights per
week, whereas Tiruchirapalli to Singapore seven flights per week to and fro. It
clearly shows the frequency of flights connecting to ASEAN countries.
Singapore has maximum number of flights from Chennai as twenty one flights
per week enhancing the connectivity.
On the whole Progress in ASEAN transport cooperation requires

framework agreement, action plan and programmes to pursue connectivity in
land, Air, Maritime and Trade facilitation. All flag ship projects are underway.
However, there are challenges such as implementing and operationalising of
existing Transport Facilitation Agreement. Prioritising land and Maritime
transport infrastructure in major Transport Corridor to reduce logistic and time.
Consolidation of the ‘Open Skies Policy’ is to establish ASEAN Single
Aviation Market (ASAM) to mobilize the resources.
Road Connectivity
Among ASEAN countries Indonesia has a relatively higher road network.
The Indonesia transport system has been shaped over time and all modes of
transport modes play a role in the country. Malaysia has good coverage of
roads. Laos has no rail system and it depends on road transport and also to some
extent on river and air transport. Myanmar has moderate road connectivity.
Singapore has the highest road density India ranks next to Singapore, followed
by Brunei.
The road infrastructure has increased the vehicle movement resulting in

high number of vehicles being registered. It was 306 vehicles in the year 1951
and increased to 1,82,445 vehicles in the year 2013. The state wise percentage
of share in total Registered motor vehicles in India during the year 2001 to
2012. Maharashtra records the highest vehicles registered with 6,760 vehicles in
2001 increased to 17,434 vehicles in the year 2012. Gujarat and Tamil Nadu
had 5576 vehicles, 5,162 vehicles registered in the year 2001 and increased to
12,993 vehicles, 15,638 vehicles respectively placing Tamil Nadu and Gujarat
in second and third place. Karnataka, Uttarpradesh, Rajasthan, Odhisha, West
240

Bengal has moderate rate of vehicle registrations. The other states of Mizoram,
Assam, Sikkim, Arunachal Pradesh records least registration of Vehicles.
India’s lane wise length of National Highways including States and union
territories. The total 97,991 Kilometers are allotted for National Highways out
of which 31,089 allocated for less than two lanes, 45,701 kilometers for two
lane and 21,201 kilometers for four lanes and above. Out of the total length of
roads Uttar Pradesh, Rajasthan, Maharashtra, Karnataka, Madhya Pradesh and
Tamil Nadu are state with highest roads where as Andhra Pradesh Bihar
Chattisgarh, Haryana, Himachal, Jammu & Kashmir Jharkandh, Telegana,
Uttarkhand West Bengal has moderate roads. All the union territories have
fewer highways. Maharashtra has the highest less than two lane followed by
Arunachal and Uttarakhand. States like Uttar Pradesh, Odhisha, Madhya
Pradesh, Assam, Bihar, Maharashtra, Uttar Pradesh, Tamil Nadu have highest
number of Two lane and State of Maharashtra, Gujarat, Tamil Nadu, Karnataka,
Rajasthan and Madhya Pradesh has four lane and above.
In Tamil Nadu, over the years there has been a slight increase in the area
allotted under National highways and increased, State highways have also
increased, Major district, other district roads, Panchayat roads have been
gradually increasing depending upon the need for connectivity. However
dispersal of traffic from Chennai and Ennore and from the rest of the national
highways network is not efficient since freight traffic has to traverse the urban
limits of Chennai city. The road facility in the immediate surrounding areas of
port is not adequate.
Rail Connectivity
The Indian Railway statistical Summary shows the development of
railway system in entire India. The kilometers of Running track allotted to
electrified trains increased. In the Trilateral Highways Phase I, the Border Road
Organisation (BRO) of India has undertaken to upgrade Tamu -Kalewa –
Kalemyo (TKK), the missing link of 58 kilometers. Part of the Trilateral
Highways 160 kilometers, at a cost of 1.20 billion in Myanmar is borne by the
Indian Government. The Government of India is also constructing 132
kilometers of Trilateral Highways from Kalewa to Yargi, and from Yargi to
Monywa the work is carried by Myanmar Government and from Hypaan to
Mae Sot by Thailand Government. The project established trilateral
connectivity from Moreh in India to Mae Sot in Thailand via Myanmar. To
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enhance the connectivity the missing link between Imphal to Manipur state
needs to be constructed to connect the main railway corridors. About 212
kilometers are required to link Imphal with Kalay in Myanmar; to connect three
pagodas pass in Thailand about 110 kilometer link is needed. Indian railways
actively engaged in harmonizing and constructing the railways track in the
north east regions of India. Project for rail connectivity to the state of Sikkim,
Meghalaya, Mizoram, Manipur and Nagaland has been taken up.
In the year 2014, first Broad gauge train from Guwahati to Tezpur via
Rangiya commenced in March 2015. Meghalaya has been brought in Map first
time. Itanagar in Arunachal Pradesh is connected with Delhi flagging of direct
trains between Nahazlagum and New Delhi. Entire meter gauge of Rangiya –
Murkongselek and Balipara – Baluk pong (510 Kilometers) along the banks of
Bhramaputra has been converted to Broad gauge. Harmut – North Lakhmipur
has started passenger traffic and north lakhmipur – Murkongselek has
commenced with goods traffic. It is proposed to develop Delhi Hanoi railways
to connect Moreh. The Government of India is constructing railway line in
Manipur connecting Jiribum – Imphal – Moreh rail link for development and
will link India with ASEAN.
The route length of rail line in Tamil Nadu was 4180.88 kilometres in the
year 2000-01 has decreased to 3846.43 kilometres. The route length is further
divided as broad gauge and metre gauge, out of which the route length are
classified as electrified and non-electrified. The route length for broad gauge
has increased over the years. The total track length has also increased over the
years comprising of broad gauge with electrified railway operations and metre
gauge shows a decrease for non-electrified railway operations. The conversion
of metre gauge to broad has increased which led to increase in broad gauge
railway stations. Railway upgradation and modernisation are being carried out
for various projects in Tamil Nadu. Project such as Dharmapuri -Morapur is
undergoing conversion to broad gauge line which has been finalized and ready
to start. Few projects such as Tiruturaipundi -Agastiyampalli with 224
kilometres, Punalur -Edaman-Sengottai with 49 kilometres, Madurai-
Bodinayakannur with 90.41 kilometres, Allipallu-Korukkupillai with 18
kilometres, MaduraiArrupukottai -Tuticorin with 144 kilometres, are under
progress. Railway lines of 70 kilometres at Tindivanam – Gingee -
Tiruvanamalai are being upgraded and modernized progress is at slow progress.
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Conversion of doubling cum electrification of 273 kilometres at Vizhipuram –

Dingigul via Tiruchy is completed and signaling work is under progress. The
railways also has proposal for re-development, monitisation of land for
horticulture and tea plantation. The introduction of Metro Rail Transit System
facility in Madurai and Coimbatore is proposed. With new rail tracks at Moore
Market Complex suburban railway stations for commuters from Avadi to
th th
Arakonnam is constructed on the 5 and 6 platform to improve the train
services on the suburban section and to reduce the travel time.
Tourism
The Annual growth of foreign tourist arrivals in India from 1981 to 2014 it
ranges between -2.2 percent to highest of 26.28 percent. The inflow of the
tourist was high during 2004, moderate during 2003, 2005 -2007 and from
2010, 2011 and 2014. It was very low inflow of foreign tourist was experienced
in the year 2012, 2013 and 2015 and negligible flow during 2001, 2002 and
2009.
The foreign exchange earnings due to tourism development have

increased. The tourists visit to India is either by air, sea or land. The percentage
of tourist travel by air has decreased from 98.5 percent in 1996 to 84.5 per cent
in the year 2015. Whereas, 1.4 per cent tourist travelled by land in 1996 which
has increased to 14.8 percent in 2015. The tourist travelling by sea has
negligible increase in percentage which ranges between 0.00 to 0.5 per cent
during 1996 -2015. Foreign tourist arrivals to India and Tamil Nadu show an
increasing trend. The foreign tourist to India increased from 2.29 million in the
year 1996 to 8.30 millions in 2015. However, the tourist arrival at Tamil Nadu
increased from 1.68 million in the year 1993 to 4.65 million in the year 2014.
The annual growth rate was high during 2005 with 59.35 per cent and
moderate growth of 14.71 per cent, 13.52 per cent, 14.16 per cent, 9.16 per cent,
10.18 per cent during 2003, 2006, 2007, 2011 and 2014 respectively. Decline in
the flow of foreign tourist to India was experienced during the year 2009 when
Asian countries were facing financial crisis. However, for Tamil Nadu the
average growth rate was 18.03 per cent in 1994 which decreased to 12.03 per
cent in 2013 with overall positive growth. The average growth rate in Tamil
Nadu decreased to -0.04 per cent, -1.72 per cent and -1.04 per cent
consequently for the year 2007, 2008 and 2009. This was the impact of global
crisis which affected the tourism.
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Infrastructure Projects
India needs to develop its infrastructure to deepen its economic integration
with ASEAN. The Ongoing and prospective infrastructure projects are under
taken to foster ASEAN-India connectivity with the Public Private Partnership in
logistics sector. The sub sectors are road and bridges, railways, port, airways
and Industrial estates. The National highway Development has undertaken the
work of road and bridges as Phase 1&2, Phase 3, Phase 5, Phase 6, Phase 7, Up
gradation of Imphal -Moreh connectivity on NH39, is an ongoing project. As
far as railways are concerned freight corridor (Western and Eastern corridors),
High speed rail system between Hyderabad and Dornakal -Vijayawada-Chennai
railway are ongoing projects, and new rail line between Jiribum-and Imphal
completed. Port and shipping are strong catalyst to economic integration, efforts
to promote regional infrastructure needs to be addressed. Investments play a
vital role in enhancing infrastructure development between ASEAN and India.
Economic corridor integrates market and foster trade. Economic corridor can
reap high returns for which higher investment in industrial sector, transport
corridors is sought and plan to deepen regional trade through global and
regional value chain.
The conversion and development of berth, deepening of draught coal

berth, international container trans-shipment, mechanization of iron ore
handling facility, are carried out at Margoa, Pradip, Cochin and Vishakapatinam
ports are in progress. Whereas, Tirupura, Megahalay and Moreh in Manipur
have integrated check post and will serve as dry port the work is going on. The
Greenfield airport at Navi Mumbai,Bijapur, Durgapur, Kannuar, PaKyoung,
Sindhudurg are ongoing projects. The green field’s airports at Dabra, Gulbarga,
Hassan, Kushinagar, Shimoga, Mopa and Palladi are some of the prospective
projects. The Industrial project at Delhi-Mumbai industrial corridor is under
work progression.
The growth of industries has been very impressive with Phase increasing
competition among states to attract more investment. Tamil Nadu has initiated a
strategy that includes a Key trust areas focusing on core infrastructure sector,
targeting strategic industries, developing knowledge/technology – driven
industries and encouraging private sector initiative and participation in the
infrastructure projects. The total number of vehicles both transport and non-
transport, registered in 2002-03 were 62.09 lakhs which increased over the
244

years to 187.42 lakhs in 2013-14. In 2010 -11 the growth rate was highest this
would have been due to improved infrastructure, better connectivity,
availability of credit facilities at cheaper rate of interest and the purchasing
power has increased the Registration of the vehicles in Tamil Nadu. The ports
of Kaveri, Vanagiri, Cheyur, Parangipettai and Udangudi are under
consideration these will serve for captive use.
On the Indian side, Chennai and surrounding area have a number of

Infrastructure projects as well, particularly to expand the capacity of ports and
airport, and to enhance the road and rail network connecting Chennai with other
parts of Tamilnadu as well as India. The capacities of Chennai port and
backyard space, and access to the port have been identified as key bottlenecks
for further development of the region. This problem is well addressed by the
planned expansion of ports of Ennore as well as Chennai, and plan to enhance
the connectivity between the two ports. Thus the major objectives of the study
were fulfilled by tracing out the India-ASEAN progress and prosperity in trade
and connectivity and also by giving an overview of Tamil Nadu trade
integration and cooperation towards borderless trade connectivity. The analysis
underscores the significance of major connectivity in road, rail air and marine
connectivity between ASEAN and Tamil Nadu for trade and commerce.
Suggestions and Way Forward

Despite its potential the current economic relationship between India and
ASEAN is still limited. There are several constraints in the cooperation between
the different countries. One factor may be due to the fact that investors are
largely focused on the rapidly growing large domestic market and the Indian
economy is more inward looking than ASEAN. India thus needs to decrease
tariffs and open access to the ASEAN markets. Another factor is the
infrastructure, both at the national and the regional level which does hinder the
connectivity between ASEAN and India especially physical connectivity.
The following are the vital issues to the relationship between India -ASEAN
from the Indian side
 India is having a limited economic integration with Southeast Asia.
 India having too much focus on its domestic politics at the cost of
foreign politics and ineffective administrative processes.
245

 Economic structure and different level of openness in the economies of

India and ASEAN.
 There is also an image issue for India in which the ASEAN traders see
Indian entrepreneurs as not firm in their management and too harsh
negotiators. This image influences the decision making.
 India’s imports barriers are much higher than that of China or that is
how the image has been created.
 Foreign direct investment do not play an vital role in India’s economic
development.
The following are the vital issues to the relationship between India -
ASEAN from the ASEAN ‘S side
 The process of negotiating the ASEAN charter and the components
also proved exposing the existing differences within the ASEAN.
 There is a failure in ASEAN to pass a joint communiqué revealed a
deep crack in ASEAN and the challenge is now to reconcile the
interest of particular member states and those of the whole bloc.
 ASEAN’s institutional constraints in producing more timely practical
cooperation.
 One of the most vital challenges is to respond to US concerns and
criticisms without alienating China.
 The policy coordination and historical challenges are associated with
ASEAN and its institutional culture.
 The three main bilateral relations among the great powers in Asia are
China, US, China-Japan and China and India. ASEAN is highly
dependent on regional dynamics and the degree of cordiality between
these great powers.
 Intra ASEAN disputes and tensions and internal conflicts and political
changes within ASEAN states.
India or be it Tamil Nadu the progress and prosperity depends on the
integration and cooperation which could be achieved by removing the
prevailing imbalances of communal and politics, and to foster the growth and
development.
246

The following are the major points for ASEAN -Tamil Nadu Integration
 Tamil Nadu is the one of the most Industrialised states of India with
well developed roads, railways network and airport facilities. It has
great potential for connectivity between ASEAN and Tamil Nadu.
 Tamil Nadu has a healthy growth in both export and imports. Seaports
of Tamil Nadu are emerging as an important factor for growth of trade
 Tamil Nadu has already establish some strong trade connects between
the ASEAN countries like Singapore and Malaysia.
 The key challenge is to improve its exports and state needs to improve
its infrastructure both its hard and soft components.
 Special Economic Zones in all sectors especially in the leather and
textile Industry can greatly enhance the connectivity and relationship
between ASEAN and Tamil Nadu.
 The major sectors in Tamil Nadu in terms of FDI investments are
software and hardware.
 The other potential sectors are automobile industry and
telecommunications – These service sectors need to be concentrated
and improved for future strengthen the trade between Tamil Nadu and
ASEAN countries.
 Tamil Nadu should try and demonstrate the advantage of an integrated
ASEAN-India connectivity which will not only fetch investment but
also improve country’s infrastructure and thereby instil growth and
development.
To overcome these challenges and to build a truly borderless economic
region, it requires sound macro-economic management, promotion of inclusive
development and ‘green growth’ eliminating barriers to the flow of goods,
services and production factors. The need of the hour is to standardise,
harmonies’ and strengthen regional institutions for which;
 Government should come forward to focus on transparent and anti-

corruption regulations. These regulations should be adhered very
strictly and followed with proper penalties and punishments.
 Contractors are guaranteed many things and in the end are not
rewarded with what was promised.
247

 Government should have to start complying more with international

standards. This will enable the government to be more accepted.
 All work related to infrastructure and connectivity should support a
precautionary approach to environmental challenges. This will
encourage the development of diffusion of environmentally friendly
technologies in development.
 Promoting more agreements with neighbouring countries especially to
facilitate connectivity. This of course needs huge investment and
challenges remains.
The suggestions for Tamil Nadu Government are as follows:
 To fully realise the benefit of ASEAN -FTA, Connectivity must be
enhanced.
 Achieving better connectivity by focusing on Air, Sea, and People to
people links.
 Upgrading of ports, terminals to boost cruise tourism.
 Promote understanding of common culture and history through cultural
events.
 Encourage the study of languages of ASEAN countries as the third
language, after native language and English.
 Built good relationships with ASEAN countries for economic and
cultural initiation by using the Diaspora.
 Cultural imitation by building institutional set ups.
Conclusion
There is a clear sense that ASEAN intends to integrate the East Asian
region into one consolidated regional bloc and it’s certain of the importance
having India as a part of it. ASEAN sees India as a emerging power in Asia and
is keen to develop relations with it that would have beneficial to countries
within ASEAN as a whole. It realizes that India possess large strategic
capabilities and can be a strong stabilizing force in the region, Economically,
India with its growing middle class can have a significant market for ASEAN
manufacturers and consequently an important source of welfare for the region.
There is a lot that ASEAN can gain from Indian’s development in its service
sector and it looks to develop wide range of economic partnership. With FTA in
the offing, this partnership only stands to be further strengthened.
248

India understands that the ASEAN grouping consists of countries have

achieved significant development in the past 22 years. It is in its interest to
establish beneficial linkages with the countries to benefit from their past
experience and current standing. There is a large potential in the synergies
between its economy and that of the ASEAN countries and it is keen to
strengthen its economic ties with them. ASEAN strategic location makes it
stable for India’s energy and economic security and looks to develop its
influence in the region by forging vital ties with ASEAN.
The ASEAN – India partnership holds ample potential for a successful
future as things stand it is evident that both India and ASEAN are keen to
establish a strange relationship with a long term emphasis on greater
cooperation and integration apart from the strengthening the economic and
strategic ties. While there is a definite challenge to be faced and addressed
before achieving the consolidated East Asian community, it is evident that
efforts are being made on both sides in developing synergies for shared
prosperity and mutual benefit of ASEAN – India and the Asian region at large.
Having come together, India and ASEAN have to seriously engage in
cooperative ventures to add substance their ‘dialogue partnership’ by moving
beyond their declarations or else it will remain a mere ‘dialogue’ devoid of any
meaningful partnership. It’s time to act past and willingness to break out of
mindset of the past in order to see the vast opportunities available for achieving
peace and development for peoples of India and the ASEAN region.
Tamil Nadu will have to accelerate the pace of their economic reform
processes in order to participate in and benefit from their trade creation
possibilities. Chennai has already established itself as a gateway to Southern
India. The ASEAN connectivity would link the Chennai region to the rest of the
world through its maritime infrastructure. Thus, Chennai has a great potential
for becoming the greater gateway for India and function as a core node
providing as centre of business activities with industrial clusters, and work as
engine to promote regional economic growth. ASEAN countries and Tamil
Nadu have to identify the missing links and investment needed.
Hence, strong mechanism is needed to plan, organise, coordinate and
followed an each country or provinces a new initiative and their necessary
reforms and steps need to be taken. If not, this could limit prospects for future
cooperation.
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UGC - Centre for South and Southeast Asian Studies

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First Published 2018

I express my gratitude to Dr S. Manivasakan, Professor and Director,

I also thank my co-guide Dr.S.Yuvaraj, Assistant Professor, Department

My Sincere thanks to the University Grant Commission for the Award of

I am thankful to Dr. I. Hiller Armstrong, Assistant Professor,

I am indebted to Dr. Nafeesa Fathima Moinuddin, for her help rendered to

Chapter Title Page No

II India - ASEAN Trade Relations: Progress and 33

III Connectivity between India and ASEAN: 79

IV ASEAN - Tamil Nadu: Trade Integration and 150

V Connectivity Integration and Cooperation 178

VI Summary and Conclusion 235

AAGR- Average Aggregate Growth Rate

AFTA – ASEAN Free Trade Area

ARF- ASEAN Regional Forum

BIMP- – Brunei – Indonesia – Malaysia – Philippines- East Asian Growth

CENTO – Central Treaty Organisation

ECOWAS – Economic Community of West African States

GMS – Greater Mekong Sub Region

JRY – Jawahar Rozgar Yogna

MIEC – Mekong – India Economic Corridor

PPP – Private Public Partnership

SEATO – Southeast Asian Treaty Organisation

UNESCO – United Nations Education Scientific and Cultural Organisation

Table - 2.1 : India’s Export to ASEAN Countries from 2001 to 2006

Table - 2.1.3 : Comparison of Total Exports of India with ASEAN and

Table - 2.5 : Comparison of Total Imports of India with ASEAN and

Table - 2.10 : Foreign Direct inflow into India

Table - 3.1 : General Profile of the ASEAN Countries and their

Table - 3.3 : Liner Shipping Connectivity Index (LSCI), from 2004 -

Table -3.6 : Air Traffic handled at All Indian Airports

Table – 3.14 : State /UT - wise Percentage Share in Total Registered

Table - 3.16.2 : Indian Railways Statistical Summary from 2011 – 2015

Table - 4.10.1 : Share Export (%) of Certain Commodities through Tamil

Table - 4.11.1 : Share Export (%) of Certain Commodities through Tamil

Table - 5.3 : Total Length of different categories of Roads in Tamil

Table - 5.4.1 : Railway Operations in Tamil Nadu 2004 - 2008

Table- 5.13.1 : Vessels entered in Tamil Nadu from 2008 – 2014

Table - 5.23 : List of Projects Sanctioned under Project Preparation

Chart- 2.1 : India’s Export to ASEAN

Chart- 2.4 : Total Exports of India

Chart - 2.10 : Comparison of India - ASEAN Exports

Chart - 2.13 : ASEAN Imports Growth Rate

Chart - 2.16 : World Imports

Chart - 2.25 : Balance of Trade between 2001to 2015

Chart - 3.15 : Foreign Tourists Arrivals (FTAs) in India - According to

Map – ASEAN – India Connectivity

Map – Port Connectivity in India

Map – Rail Connectivity in India

Map – Rail Connectivity in Tami Nadu

Map – Mekong-India Economic Corridor

“Regionalism is an approach to study the behaviour that emphasizes the geographical

The fundamental tendencies reshaping world order are not primarily

The end of the Cold War definitely encourages a greater emphasis on

From a world order perspective the role of regionalism is to help create a

integrative, technological dynamic associated with globalism. One kind of

The overlapping of partial or general phenomena has always been the

Regional development strategies should be based on the sound assessment

Competitive advantage is based in its resource configurations, but these

Although geography lies at the heart of most of these definitions, some