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As a result, the ministry of external affairs (MEA) has urged the commerce and industry ministry to begin consultations with industry leaders on a war-footing even as India’s membership at an expanded APEC will take time.
APEC economies — Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Russia, Singapore, Chinese Taipei, Thailand, US and Vietnam — account for over 57 per cent of the world GDP and 47 per cent of global trade.
“This will take a while. We will first have to prepare our industry and see if they are ready. APEC is a premier trade body with very high standards. The commerce ministry has to now hold the consultations with them. We are already late and this has to be addressed on a war-footing,” a top MEA official told Business Standard.
The official also said that it makes more sense for India to join APEC now because it is also negotiating a regional trade pact Regional Comprehensive Economic Partnership (RCEP) where China is an influential member, including the 10 Southeast Asian countries and their partner countries.
India had applied for APEC's membership in 1993. However, it could not be inducted then due to a 10-year moratorium that is now over. India now believes that the member countries now need to be "nudged" to open the membership once again.
The government is "confident" that the road ahead for it to be APEC's member will be smoother now that Chinese President Xi Jinping and US President Barack Obama have publicly assured their support for India's membership, according to another official.
India will once again lobby for its membership when Prime Minister Narendra Modi meets US President Barack Obama on September 28.
However, India needs to put its own house in order to be able to be part of APEC. India believes by 2017 it will be inducted as its newest member when Vietnam becomes the chair of APEC. Presently, the Philippines is the chair of APEC.
"If India has to become a member of APEC, there will be an expectation to see that its economic reform and liberalisation process will contribute towards the APEC process of regional integration. If it is decided to move ahead, necessary preparations have to start right away even as a favourable decision on India's admission into APEC may take two to three years to materialize," said V S Seshashdri, vice chairman, RIS in a study on APEC.
The APEC grouping of 21 countries had not considered an expansion of the body ever since it was formed in 1989. However, in 2007 and 2010 the leaders did indicate that new members can be taken on board but the plan got postponed.
However, chances are now high for India even as it is pushing for the moratorium to be removed and members discuss the matter once again of allowing newer members to be part of the pact.
During the last APEC Summit held in November 2014 in Beijing there were some talks that new members who will be able to "contribute towards the global value chain significantly" can be considered for membership, officials said.
Besides India at least 15 more countries from Latin and Central America, Africa, Pakistan and Sri Lanka are all waiting eagerly in the queue to be part of APEC.
Share of APEC in India's total exports declined from 46.2 per cent in 2000-01 to 32.7 per cent in 2013-14 while imports from APEC countries to India increased from 29.2 per cent in 2000-01 to 36.2 per cent 2013-14, according to the RIS study.
