GRM 2010 GRM 2011

Abstract Details

Family Name:
First Name:
Title of Paper:
India-GCC Strategic Economic Partnership: Building Block for Pan-Asian Economic Integrati
Paper Proposal Text :

India-GCC Strategic Economic Partnership: Building Block for Pan-Asian Economic Integration

Samir Pradhan

This century witnessed a new global economic order unfolding with the balance of global growth shifting from the developed countries of the West to the emerging countries of the East. The financial crisis of the 2008 and consequent global economic recession further accelerated this historical shift. This sparked a divergence of economic performance between the West and the emerging East. Crippled with financial worries, the developed countries of the West resorted to restrictions on competitive markets and other protectionist measures; but, emerging countries of the East consolidated their synergies and complementarities to further strengthen their new found economic power in the emerging global order. While domestic crisis intervention strategies in the West may lead to ‘deglobalisation’ due to economic conservatism, the economic buoyancy and long term growth fundamentals of the East will reaffirm the process of ‘reglobalisation’.

This transition is particularly evident in the globalizing Asia, where the growth of Asian sub-regions are increasingly becoming mutually reinforcing, paving the way for a new geo-economic force that is reshaping the global economic order. This phenomenon can be substantiated from the proliferation of shallow and deep economic integration among countries and sub regions within Asia in the ambit of WTO+ open regionalism framework. Currently, though dispersed, there is a virtual Asian Economic Community (AEC) which can be mapped from the numerous Preferential Trading Agreements (PTAs), Free Trade Agreements (FTAs), Regional Trading Agreements (RTAs), Comprehensive Economic Partnership Agreements (CEPAs), and Framework Agreement for Economic Cooperation (FAECs) in operation at various levels both in scope and dimension.

Against this background, the main objective of the paper is to explore the significance of the proposed India-GCC strategic economic partnership for pan-Asian economic integration. The priority is to locate the strategic significance of India and the GCC as important nodes in the pan-Asian economic landscape and how they are going to mutually reinforce Asia’s emergence in the new global economic order. Analyzing the dynamics of India-GCC economic partnership from the perspective of the proposed FTA, this paper will highlight the mutual economic benefits and their regional spill over, the pace and scale of negotiations, status and main areas of concerns and enabling policy parameters for way forward. Citing the ongoing global economic crisis as an enable for consolidating the burgeoning India-GCC economic ties, this paper will make a strong case for expediting the ratification process of the FTA.