The Asia Society Policy Institute (ASPI) with the support of Confederation of Indian Industry (CII) has launched an initiative "India and APEC
Established in 1989, APEC is among the Asia-Pacific's most important forums for regional dialogue and economic collaboration. Its 21-member economies represent approximately three-fifths of world GDP and half of world trade. India is Asia's third largest economy and its absence from the APEC forum is a missed opportunity for both India and the region.
The initiative launch on July 20 at the Asia Society in New York and CII Headquarters in New Delhi, featured the initiative's chair, Kevin Rudd, President of ASPI and former prime minister of Australia, and his two co-chairs: Ajay Banga, President and CEO of MasterCard and Chairman of the U.S.-India Business Council; and Shyam Saran, former Foreign Secretary of India and Special Envoy of the Prime Minister.
"To achieve its economic potential, India should become more fully integrated into global supply chains and international trade and investment flows," Rudd said.
"Including India in APEC, which for more than 25 years has spearheaded trade and investment liberalization efforts across the Asia-Pacific region, will help open India's economy to the region and the world, to the benefit of India and its neighbors and trading partners," he added.
As a partner in the new initiative, CII will provide vital business expertise, ensure that the interests of Indian businesses are represented in the Task Force's activities, and help engage India's government in charting a path toward APEC membership.
Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII) stated, "CII is closely working with APEC, TPP and ASEAN to foster trade and investment in India.
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"We are also closely working with government of India on standards and quality," he added.
Banerjee said while India's membership into APEC would bolster the government's manufacturing initiatives, it would be an important forum for SMEs to be in the Global Value Chains.
"So we can't be left out," he said.
Saran argued that joining APEC would bolster India's Act East policy by helping it improve its economic engagement and cooperation with Asia-Pacific countries.
Ajau Banga said the membership in APEC would be a helpful step towards India becoming better integrated with Asia-Pacific economies, which will be welcomed by the U.S. and Asian businesses that want to invest more in India and help with the jobs growth it needs.
Sunil Kant Munjal, Past President CII and Chairman, Hero Corporate Service Limited, said India is interested in APEC membership.
"Repositioning India's "Look East Policy" as "Act East Policy" reflects government's objectives. The pace might look slow but India is the only economy which has built a civil society first and then turning into a market economy," he added.
The other Task Force participants come from various APEC member economies, such as Indonesia, Korea, the Philippines, and the United States.
During the first year of the initiative, the Task Force will examine the challenges and opportunities of Indian membership in APEC and develop a plan for India's eventual accession to APEC.
The task force members will share their findings with their governments during 2016, in anticipation of the APEC Summit that is scheduled to be held in Lima, Peru in November of that year.
The task force will also organize roundtable discussions and ongoing research on India's role in international trade and investment.
"Stronger trade and investment ties among India and other Asia-Pacific economies will not only generate economic benefits, but also foster stability across the region. India's entry into APEC would make it a more inclusive forum for trade consultation and dialogue and thereby mitigate the divisive effects that new trade regimes in Asia could have," said Rudd.