The role of connectivity for accelerating ASEAN–India economic integration

Abstract

Connectivity is one of the key factors that are important to accelerate economic integration between
ASEAN and India. Improved connectivity is critical to increase ASEAN–India economic relations
and to strengthen ASEAN–India’s share in regional and global production networks. To build
and strengthen this connectivity, several strategic measures are needed. First, there is a need for a clear
regional connectivity framework, a multi-modal, multi-functional and multi-tier approach, which
includes land, maritime and air connectivity. Second, there is a need to establish strong regional institutions
for cooperation in terms of planning, managing and funding the infrastructure needs. Third,
ASEAN and India need to address wide infrastructure variations within their member countries and
states. Specifically, significant resources and time must be dedicated to build and strengthen infrastructure
in Myanmar and the northeastern region of India, given their strategic location as the connecting
nodes of ASEAN–India connectivity. For infrastructure development, there must be a clear strategy
to encourage more private sector participation. Public–private partnership seems not only promising
but also challenging given the complexity and cost of infrastructure investment. A fair distribution of
risk remains a big constraint to the promotion of public–private partnerships. Fourth, ASEAN–India
connectivity should be integrated with regional development plans and linked to the international
production network. And finally, there is a need for strong political commitment to execute most of the
policies and strategies that have been agreed to by the ASEAN countries and India.

Keywords: Connectivity, Transport, Regional integration, ASEAN, India