India ASEAN FTA in investment and services

India recently signed an FTA in investments and services with ASEAN.

1. What is India going to benefit out of this?
Ans :

• It will help integrate Indian economy with the booming economies of SE Asia.
• Helps indirectly in strategic partnership 
• Indian Ocean Maritime Security
• Growing China's presence in Indian Ocean Area
• Opens up market for Indian professionals and service exports.

2. But India has already signed a FTA in trade with ASEAN. Did it help India in economic terms?
Ans: Indian FTA in trade with ASEAN did not lead to expected results because to an extent of India's inherent issues.

• Poor manufacturing base ==> our products could not compete with Chinese or Korean
• The same reason didn't let imports of raw material to boost

3. Then how is this new FTA going to help?
Ans:

• Service sector is India's strength. We can leverage it in ASEAN market
• Our work force in Service sector is highly skilled. They can utilize the booming market of ASEAN nations
• An agreement in investment would boost capital inflows and outflows. We would get necessary capital for our infrastructure and other needs. Our investors can put their money in the booming upcoming market and earn healthy returns.

4. OK so what could be the concerns related to it?

• The Philippines, a competitor of India in service sector is a member of ASEAN. 
• There was an economic crisis during 1999 in this part of the world. India should tread with caution.