What are the reasons behind APEC not accepting India as its member? How can India's admission in APEC play a formative role in development of member economies? Discuss.

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region. It was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world.
Reasons behind APEC not accepting India as its members

  • India doesn’t border the pacific while all the other nations which are it’s members do.
  • There are fears that allowing India to join would give APEC a Western Pacific bias, which would not profit countries in the American continent.
  • High duties and tariffs in India.
  • Overregulation in the market.
  • Resistance from China which is not ready to accommodate India as it would give broad acceptance to the notion of Indo-pacific.
  • Membership in APEC will requires certain changes in economic policies. India’s inward looking economic policies are seen with suspicion by APEC members.

India’s admission in APEC can provide following benefits

  • With India’s membership APEC continue to advance regional connectivity and maintain its standing as the region’s premier economic forum by bringing new economies and sources of growth into the region’s economic fabric.
  • India’s accession to APEC would contribute to greater economic integration of the Asia-Pacific region at a time when emerging trade regimes could create gaps between the standards and policies adopted by their members and those pursued by nonmembers. By including a key economy such as India, APEC can play a constructive role by helping bridge such gaps.
  • Including India in APEC would provide its members a mechanism to deepen their economic engagement with India and more easily partner with India in its economic growth. APEC members would gain greater access to India’s growing market, robust labor supply, and ample investment opportunities.
  • Without the region’s third largest and now fastest growing major economy, APEC economies will struggle to capitalize on one of the most promising markets and growth drivers in the wider Asia-Pacific. APEC would not only remain incomplete

APEC and India can have a symbiotic relationship which would aid in ushering prosperity in the region.


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