Choudhary asked: What will APEC gain from India’s membership?
replies: The Asia-Pacific Economic Cooperation (APEC) is a grouping of economies that aims to ‘leverage the growing interdependence of the Asia-Pacific (…) through regional economic integration’. For over two decades since India applied for the membership to the grouping, the debate over India’s entry has been dubbed as a question of when not if.
India’s growing strategic and geo-economic clout in global affairs comes at a time when the APEC grouping is trying to renew its relevance and reinvigorate its agenda for regional integration in a changing geo-strategic environment. India ’s membership would serve APEC members by providing new consumer markets, investment opportunities and tapping of India’s labour force. India is expected to become the third-largest economy in the world with a GDP of $5 trillion in the next three years and touch $7 trillion by 2030. India has also set an ambitious goal to attract $100 billion annually in foreign direct investment.
India’s G20 presidency showcased its consensus building capabilities and ability to be a leading player in the Indo Pacific by acting as a bridge builder between the Global North and South. The changing nature and structure of its economy has transformed its approach to trade negotiations. It is seeking to participate in global supply chains and push for further mobility of its skilled workers. It has done its work at home, beginning with reform of its internal tax structures to eliminate red tape and ensure ease of doing business. This should allay fears of the past that denied India membership fearing its ‘protectionist instincts.’
As India seeks to shape global governance to be more reflective of contemporary realities, access to APEC’s knowledge pool will be crucial to understand best practices on trade policy, technology, and economic development. India will have to strive harder to develop its manufacturing sector, move faster on its structural reforms, especially land and labour markets, and sustain investments in research and innovation which can help it gain the competitive edge and add value to the 21 economies in the APEC.
Views expressed are of the expert and do not necessarily reflect the views of the Manohar Parrikar IDSA or the Government of India.
Year: 10-07-2024
