It gives me great pleasure, on behalf of my ASEAN colleagues, to welcome His Excellency, the Minister of External Affairs, Mr. Inder Kumar Gujral to this ASEAN Post-Ministerial Conference, This meeting India’s first participation in the PMC process as a full dialogue partner of ASEAN - marks the beginning of a new era in ASEAN-India relations. I Hope that our discussion today will lay a solid foundation for the enhancement of ASEAN- India cooperation in all arcas.

The decision to upgrade India to a full dialogue partner of ASEAN was taken by the ASEAN leaders when they met at the Fifth ASEAN Summit in Bangkok last December, They recognised India’s growing political, economic and strategic importance and the mutual benefits to be gained by both India and ASEAN through closer cooperation. India stands today as a strong economy with a GNP of more than US$280 billion with an enormous potential for rapid growth. In Purchasing Power Parity (PPP) terms, India's GNP has already reached $1.2 triltion and is now ranked fifth in the world. You can provide ASEAN, with vital links to the Indian Ocean. ASEAN, on the other hand, can be India’s springboard into the Asia-Pacific. It would be hard to imagine an Asia-Pacific Century without India’s participation.

Three years ago, when ASEAN and India embarked on a Sectoral Dialogue relationship, it was a tentative start. Until then, our relations had been cordial but our priorities and preoccupation’s had been different.

It has therefore been a matter of great satisfaction to both sides that this cautious first step has led to a rapid growth in our relations. In the short span of three years, we have made substantial progress in our cooperation iii the areas of trade and investment, tourism, and science and technology. In trade alone, front 1991 to 1995, Indian exports to ASEAN grew annually at a rate of 40% and imports from ASEAN at a rate of 23%. These figures compare very favourably with India's trade growth with its other traditional trading partners. During the same period, India’s exports to the US grew by 28%, to Japan by 18% and to the EU by 24%, its imports from the US grew by 15%, from Japan by 17% and from the EU by 13%.

It is now timely to build upon the foundation laid by the Sectoral Dialogue relationship. Upgrading ASEAN's relations with India to a higher plane represents ASEAN's commitment towards a new and stronger partnership with India. This next phase in ASEAN-India ties will enable us to establish a more robust relationship and work closely together to achieve economic prosperity and a greater security for the peoples of our two regions. To achieve this, we must take bold strides to collaborate closely and more importantly, continuously explore and enter into new areas of cooperation,


Political and Security Cooperation

Preserving the security and stability of the region is a key goal for ASEAN. It is only in a peaceful environment that we can focus our energies and resources on economic development and growth. Through our dialogue relationships, we engage key regional players to help us promote and preserve regional stability. India, given its size and strategic location in the Indian Ocean, can play a constructive and positive role in contributing to the stability of the region. In this regard, we are pleased to have India in the ASEAN Regional Forum (ARF). Your first participation in the Third ARF would leave indicated to you the important role the ARF can play in enhancing the security and stability of the region.

ASEAN also attaches great importance to bilateral consultations with India on important regional and world political events. It is for this reason that ASEAN has suggested the establishment of an ASEAN-India Senior Officials Meeting (SOM) to discuss political issues. We look forward to a fruitful and candid exchange of views at this forum.


Economic Linkages

Trade and Investment Linkages the success of the Sectoral Dialogue underscores the strong economic compulsions for closer cooperation between ASEAN and India. ASEAN, riding on the crest of the rapid economic growth in the region, is venturing beyond its shores to expand its economic linkages. India, which has traditionally been looking West, is looking at Southeast Asia and the Asia-Pacific for trade and investment opportunities.

This new dynamic augurs well for ASEAN-India economic ties. As India's economic reforms bear fruit and as ASEAN grows in membership, there will be new opportunities for closer cooperation in trade and investment, ASEAN investments could add impetus to India’s economic reforms. India, on the other hand, can share with us its expertise in areas such as scientific and technological research. An expanded ASEAN will also be an Important market and investment location for Indian companies.

I understand that our senior officials have already floated some ideas for facilitating trade and investment flows between the two sides. We should pursue these proposals. The ASEAN Free Trade Area (AFTA), an important element in ASEAN, is in the process of developing links with other key growth regions. An AFTA-India Linkage is a conceivable long terms vision we can work towards, If realised, it will bridge two major Asian trading entities.

These proposals, and other initiatives, If deemed mutually beneficial, can be launched at tire First ASEAN-India Joint Cooperation Committee (JCC) meeting tentatively scheduled to meet in New Delhi later this year.

Private Sector Cooperation ASEAN has learnt from its experience that the private sector is the main driving force behind successful trade and investment initiatives. Governments could provide the framework and policies for economic cooperation. But without the efforts of our sectors, even the best plans and policies would not work.

There is a strong imperative for us to focus on building a strong network between our private sectors. It could be done, through joint organisations., business conferences and seminars. The success of the Global Indian Entrepreneurs Conference held in Singapore last month testifies to the importance and benefit of such networking and information exchange activities. I therefore fully support the intention to broaden the ASEAN-India business network and energise ASEAN-India Business Council (AIBC). The AIBC should focus on businessmen who need the most Help, namely the Small and Medium Enterprises (SMEs). The SMEs constitute a strong entrepreneurial class in India and the ASEAN economies. We should provide them with a predictable and conducive framework to come together to explore the possibility of combining their forces and resources in joint ventures.


Science and Technology

India is a recognised leader in R&D and has been in the forefront of science and technology. In recent years, ASEAN countries have also made significant strides in areas such as biotechnology and information technology. There is great potential for closer collaboration between ASEAN and India in these areas. In this regard, ASEAN supports India's proposal to establish a Working Group to explore cooperation in Science and Technology. The synergy of our strengths in this area will help us meet the challenges of our industrialisation drive and help us keep abreast with global technological progress.


Cultural, Tourism and Educational Linkages

In our cooperation with each other, we are fortunate to enjoy close historical and cultural ties. This promotes mutual trust and confidence which makes for good rapport between our peoples. As we focus on developing economic and political links, it is important that we continue to strengthen our cultural links. We would reap long-term gains if we start investing in strengthening our bridges now. This could be done through developing tourism, cultural, educational and other institutional linkages. Given the cultural and geographical diversity, and the richness of the ASEAN region and the Indian sub-continent, there is plenty of scope for cooperation in these areas.


Conclusion

The ASEAN-India relationship has matured significantly. The task ahead is to build upon the existing foundations. This first ASEAN-India dialogue is the start to an expanded and enriching partnership. The tremendous potential, resources and energies of both regions must be well tapped and harnessed to achieve mutual prosperity in the long run. ASEAN is ready and committed to work closely with India in order to make this New Partnership a success.