In a significant move to strengthen economic ties, India and 10 Association of South East Asian nations on Tuesday decided to set up a Regional Trade and Investment Area to facilitate flow of foreign direct investment in the region and enhance regional monetary and financial cooperation besides promoting an Asian bond market.
A Plan of Action to implement the Asean-India partnership for Peace, Progress and Shared Prosperity, signed in Vientiane by Prime Minister Manmohan Singh and heads of 10 Asean countries, laid special emphasis on infrastructure and transport development and cooperation in gas-related projects.
As part of cooperation in infrastructure, the Plan called for expediting completion of India-Myanmar-Thailand trilateral highway and its extension to Laos and Cambodia apart from strengthening air connectivity.
Both sides would work towards establishment of bilateral agreements between member countries of Asean and New Delhi for investment promotion and double taxation avoidance.
They would also establish linkages between national standards and conformity bodies and technical regulators for mutual recognition of assessment procedures.The Plan of Action aims at improving financial stability, regional monetary and financial cooperation apart from further developing capital markets of the region.