Regional Integration and Cooperation in Asia—An Indian Perspective

Abstract

Regional cooperation and regional integration are terms that are often used synonymously, although they differ in important respects. Regional cooperation most often encompasses policies and agreements relating to matters such as preferential or free trade agreements entailing the removal of trade barriers for trade in goods; Economic Partnership Agreements (EPAs)/Comprehensive Economic Cooperation Agreements (CECAs) covering market access in trade and services besides trade in goods, as also cooperation for investment promotion and protection; among others. Regional integration on the other hand may mean deeper forms of cooperation that could include an alignment of customs regimes; the coordination in macroeconomic policies; a freer movement of factors of production like labor and capital; cross border connectivity, communications and energy related linkages; a common central bank. This article presents an overview of the Asian region and how some of the key features of Asia have influenced the Indian perspective on regional integration and cooperation. It elaborates upon some of the major drivers of current and future integration processes in Asia, as well as the dynamics and interplay of various factors and forces that may point towards the potential for Asian integration.