Utility of india's economic collaboration with ASEAN

If a backward and underdeveloped country is interested in rapid economic development, it will have to import machinery, technical know how, spare parts and even raw material. One method of paying for imports is to step up exports, and the second alternative of getting foreign technology and equipment is to depend upon foreign assistance in some form or the other. Most countries of the world which embarked on the road to economic development had to depend on foreign capital to some extent. The fact cannot be denied that foreign capital contributed in many important ways to the process of economic growth and industrialisation. The need for foreign capital for developing country like India can arise on account of shortage of foreign exchange, resources and technical know-how. Presently the same economic problems confronting to ASEAN. This region (ASEAN) has a vast potential of natural resources but lack of foreign aid (capital and technology both) this region is still under developed (except Singapore, Malaysia and Brunei). Developed countries as well as international Financial Institutions such as the International Bank of Reconstruction and Development (IBRD), International monetary fund (IMF) and international development Association (IDA) are fully recognize to these problems being faced by developing countries. All most all developed countries and international financial agencies have taken several effective steps towards solving such problems. But in the present day world the Capital requirements of the developing countries being far in excess of their resources rapid growth is possible only through joint ventures and turn by projects.
In recent year joint ventures (Foreign capital and domestic capital) and technical collaboration among developing countries are therefore expected to play a significant role in their economic advancement. There are three types of foreign collaboration joint participation between private parties, between foreign firms and government of a country and between foreign government and government of a country. These types of collaboration help in adjusting adverse balance of payments by earning exchange through dividend, royalties technical know-how fees etc and also effective in achieving greater specialization, diversification of production structure and act as vehicles of economic co-operation.
Trade relation between India and ASEAN region go back to ancient times, contributing to the historical and civilization affinities. In the modern era, ASEAN region have shown a been interest in intermediate type of Indian technology which very much suits to their sociao-economic needs. In fact a new entrepreneurial and managerial class has emerged in India with capacity and competence to undertake the responsibility of establishing industrial units and infra-structural facilities abroad right from the stage of planning and designing to installation and operation. India has not only gained self-reliance in advance fields of technology but has also developed labour intensive technology. Hence some developed countries (e.g. U.S., France, Germany) which are finding it uneconomical to operate labour intensive industries, are eager to join hands with India in their establishments. Joint ventures would thus, form a base for stepping up the industrial and economic development of the developing countries and would act as a catalyst to foster and promote commercial fraternity among the developing nations.
ASEAN India relations had been rapidly developed and enhanced since the establishment of the sectoral dialogue partnership in 1992 and especially since India became a full dialogue partner in Dec. 1995 and subsequently participated in the ASEAN regional forum (ARF) in July 1996. Joining like this enhanced co-operation among India-ASEAN but economical co-operation is more necessary, which can be possible all through joint ventures in industrial and technical fields1.
source:-www.aseansec.org.com