ASEAN-India economic integration faces difficulties

NEW DELHI, India: Most Southeast Asian countries are surrounded by bodies of water and attention so far has focused on improving port-to-port transportation. But more needs to be done before economic integration can be achieved.

There has been a proposal to set up a rail link from Delhi to Hanoi, the capital of Vietnam, passing through Myanmar, Laos, Cambodia and Thailand.

ASEAN nations and India are also working to achieve an open sky agreement, which will allow all flights to travel freely in the region.

For Southeast Asian tourists, the Indian government will soon provide multiple-entry visas.

Former ASEAN secretary-general, Ong Keng Yong, said: "Good thing is that people are thinking about the European idea - after you enter one country in Europe, you can move around. We are looking at that. But it is something we have to continuously pursue because there are so many considerations."

It takes a long time to finish customs clearances, and export and import procedures remain cumbersome, complicated and expensive. Trucks crossing international borders also require immigration controls, customs and quarantine procedures.

Singapore’s ambassador to Algeria, Zulkifli Bin Baharudin, said: "If you have 10 airports, which are well connected to the world, freedom of movement in and out of India, with the infrastructure that comes with it - custom procedures harmonised, free trade zones, understanding of manufacturing process, support of export-oriented industries - I think all that connectivity we talked about will come to fruition."

Besides infrastructure, a lack of political uniformity is also another barrier to ASEAN-India integration.

A military government in Myanmar and the recent political unrest in Thailand have obstructed the trade corridor.

Laws on taxation and banking too differ in each country. Adopting common standards and even a common currency seems unlikely as most ASEAN countries trade with India on one hand, but are also its rivals on the other hand for the import and investment of dollars in the rest of the world.

ASEAN countries have varying levels of development. This is also proving to be a hindrance in terms of developing effective infrastructure across international borders such as rail, roads and airports.